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HomeMy WebLinkAbout06/25/2007 Council PacketSUMMARY MINUTES Monday June 25, 2007 (Scheduled to be broadcast on Channel 16) City Council: Mayor Bergeson, Council Members Carlson, O'Donnell, Reinert & Stoltz City Administrator: Gordon Heitke Community Room (not televised) A) Review Regular Council Agenda Trrlin NT AUTH (see separate agenda) P. ➢ Open Mike / Public Comment None Call ➢ Call to Order and Roll Call 6:30 p.m. — Present were Council Members O'Donnell, Reinert, Carlson; Mayor Bergeson and Council Member Stoltz were absent ➢ Pledge of Allegiance ➢ Setting the Agenda: Addition or deletion of agenda items The agenda was approved. N ©A; A) Consideration of Expenditures: i) June 25, 2007 (Check No. 80343 through 80454) in the amount of $868,708.35; ii) Centennial Fire District (Check No. 2746 through 2764) in the amount of $43,656.35 Pg 4 -17 B) Consider approval of June 4, 2007 Council Work Session Pg 18 -22 Minutes C) Consider approval of June 11, 2007 City Council Meeting Pg 23 -27 Minutes D) Consider Resolution No. 07 -89, Approving the renewal of Pg 28 -30 tobacco licenses for the 2007/2008 license period Council Agenda -2- 6/25/2007 SUMMARY MINUTES E) Consider Resolution No. 07 -90, Approving a Solicitor License Pg 31 -32 for Pro Alarm F) Consider Resolution No. 07 -91, Approving the renewal of a Pg 33 -34 private kennel license for Margo Polta, 575 Ash Street G) Consideration of Resolution No. 07 -92, Approving Final Pg 35 -39 Pay Request, Lois Lane Utility Extension Project, Jim Studenski H) Consider approval of June 4, 2007 Special City Council Meeting Minutes Action Taken: Motion by Carlson, seconded by Reinert, to approve the Consent Agenda, Items 1A through 1H, was adopted by a unanimous voice vote (Bergeson & Stoltz absent) Pg 40 EPA NT RE QR1 A) Consider Resolution No. 07 -96 Awarding the Sale of $4,215,000 General Obligation Tax Increment Financing Bonds Series 2007A, Al Rolek, Terri Heaton, Springsted, Inc. Action Taken: Motion by Reinert, seconded by Carlson, to approve Resolution No. 07 -96, as presented, was adopted by a unanimous voice vote (Bergeson & Stoltz absent) Pg 41 -60 B) Consider Resolution No. 07 -97 Approving the Modification Pg 61 -63 of Tax Increment Financing Plan for Tax Increment Financing District No. 1 -11, Al Rolek Action Taken: Motion by Carlson, seconded by Reinert, to approve Resolution No. 07 -97, as presented, was adopted by a unanimous voice vote (Bergeson & Stoltz absent) C) Consider Resolution No. 07 -98 Authorizing Interfund Loan Pg 64 -66 in Connection with Lake Drive Interchange and Tax Increment Financing District No. 1 -11, Al Rolek Action Taken: Motion by Reinert, seconded by Carlson, to approve Resolution No. 07 -98, as presented, was adopted by a unanimous voice vote (Bergeson & Stoltz absent) D) Consider Resolution 07 -99 Authorizing a Utility Rate Study Pg 67 -75 Action Taken: Motion by Carlson, seconded by Reinert, to approve Resolution No. 07 -99, as presented, was adopted by a unanimous voice vote (Bergeson & Stoltz absent) ADMI. TMENT- None Council Agenda -3- SUMMARY MINUTES !C. SA ' ,,� 1 EPARTMENT REPORT, Dave 6/25/2007 Pg 76 A) Annual Renewal of Otter Lake Animal Control Contract Action Taken: Motion by Reinert, seconded by Carlson, to approve the renewal of the contract, as presented, was adopted by a unanimous voice vote (Bergeson & Stoltz absent) B) Acknowledgement of Support for the 2007 Senior Safety Fair Action Taken: Motion by Carlson, seconded by Reinert, to acknowledge the support, was adopted by a unanimous voice vote (Bergeson & Stoltz absent) None REPO Pg 77 -78 A) Consideration of Resolution No. 07 -95, Rejecting All Bids Pg 79 -81 and Authorizing Request for Quotes, 2007 Surface Water Management Projects, Jim Studenski Action Taken: Motion by Carlson, seconded by Reinert, to approve Resolution No. 07 -95, as presented, was adopted by a unanimous voice vote (Bergeson & Stoltz absent) None rnr None Action Taken: Motion by Carlson, seconded by O'Donnell, to adjourn at 7:00 p.m., was adopted by a unanimous voice vote (Bergeson & Stoltz absent) ii- it- I,- Community Calendar- A Look Ahead June 26 -July 9, 2007 Wednesday, June 27 Monday, July 2 Wednesday, July 4 Thursday, July 5 Monday, July 9 Monday, July 9 6:30 p.m., Council Chambers 5:30 p.m., Community Room Holiday — City Hall Closed 7:00 a.m., Community Room 6:30 p.m., Community Room 6:30 p.m., Council Chambers Environmental Board Council Work Session 4th of July EDAC Park Board Council Meeting avid de tivfr1G f� �( i 4-4_t( 1 3s .w�. (O(2A-107 } - t C3j,av�tc.' Irtio � _ S5-(95/0.v, Zc /d 1 I i /escv 4-61, -h TO: Lino Lakes City Council FROM: Spirit Hills Retail Center Tenants DATE: June 25, 2007 RE: Attached Memo Please review the attached memo that was received by us on Saturday, June 23`d, from Griffin Companies. As you can see, the owners of Spirit Hills Retail Center are holding the tenants responsible for their not meeting/complying with the City Ordinances of Lino Lakes regarding the parking issues. First, the tenants strongly believe that the parking issues within the mall are strictly between the City of Lino Lakes and the two owners of the mall. The City set the ordinances; the owners are expected to comply with those ordinances. In no way do we feel that this is a "tenant" issue. Secondly, due to a necessary response to this letter back to Griffin Companies, we are in search of an attorney to begin to handle these roadblocks that are constantly being thrown at us and to do what is necessary to get this parking issue resolved. Since this is not a tenant problem, we would appreciate the City informing the owners of this mall that the parking issues are between them and the City. Also, we, the tenants, would like some response as to a possible resolution and a timeframe that this can be accomplished. As always, thank you for your consideration and help in this matter. k Ve GRIFF'IPo1 COMPANIES June 22, 2007 Katie Allen Allure Salon Inc. 6511 Ware Road #190 Lino Lakes MN 55014 Dear Katie: The city of Lino Lakes has rescinded the Certificates of Occupancy for 6501 Ware Road # 340 and 6511 Ware Road #140. The city completed a parking analysis for the property and they determined that the center lacks a sufficient number of parking places to support the addition of any further users in the center without some reduction to the parking demands of the existing tenants. The ownership is working with the city to rectify the parking situation. Until or unless the situation is worked out the square footage used for the operating expenses and real estate taxes chargeback will be reduced by the square footage of the two empty spaces. This will change the square footage from 26,570 to 24,186. This will increase your percentage of the expenses from 9.6% to 10.5 %. Your new operating expenses charges effective July 1St 2007 until the Certificates of Occupancy are reinstated will be as follows. Real Estate Taxes Operating Expenses $965.13 $755.65 If you have any questions regarding this issue please contact me at (612)904 -7858. Sine rely, Evan Shuster Property Manager Cc: Rockey Goertz 615 First Avenue NE, Suite 500 Minneapolis, MN 55413 Phone: 612- 338 -2828 Fax: 612- 338 -5288 www.griffincos.com AWARD: SALE: 1 CL-? cu Springsted Springsted Incorporated 380 Jackson Street, Suite 300 Saint Paul, MN 55101 -2887 Tel: 651 - 223 -3000 Fax: 651 - 223 -3002 Email: advisors @springsted.com www.springsted.com $4,215,000 CITY OF LINO LAKES, MINNESOTA GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2007A (BOOK ENTRY ONLY) PIPER JAFFRAY & CO. June 25, 2007 Moody's Rating: Aaa FSA Insured Moody's Underlying Rating: Aa3 Bidder Interest Rates Price Net Interest Cost True Interest Rate PIPER JAFFRAY & CO. ROBERT W. BAIRD & COMPANY, INCORPORATED J.P. MORGAN SECURITIES STIFEL, NICOLAUS & CO., INC. MORGAN KEEGAN & CO. DA DAVIDSON & CO. HARRIS N.A. FTN Financial Capital Markets Isaak Bond Investments, Inc. Bankers' Bank GRIFFIN, KUBIK, STEPHENS & THOMPSON, INC. 4.00% 2009 -2021 4.10% 2022 4.125% 2023 -2024 4.00% 2009 -2011 4.10% 2012 -2022 4.15% 2023 4.20% 2024 4.00% 2009 -2011 4.125% 2012 -2024 4.00% 2009 -2010 4.125% 2011 -2024 4.00% 2009 -2017 4.125% 2018 -2019 4.15% 2020 -2023 4.20% 2024 4.10% 2009 -2021 4.20% 2022 -2024 4.125% 2009 -2020 4.25% 2021 -2024 $4,189,202.10 $1,589,294.28 $4,209,885.35 $1,598,062.73 $4,199,075.10 $1,611,496.57 $4,198,626.07 $1,612,898.17 $4,185,586.23 $1,613,304.83 $4,188,296.20 $4,195,930.70 $1,626,637.08 $1,635,756.59 4.00% 2009 -2012 $4,170,795.85 $1,629,255.87 4.10% 2013 -2024 4.1175% 4.1275% 4.1708% 4.1752% 4.1799% 4.2157% 4.2328% 4.2357% (Continued) Public Sector Advisors Bidder Interest Rates Price Net Interest Cost True Interest Rate CRONIN & COMPANY, INCORPORATED UBS SECURITIES LLC CITIGROUP GLOBAL MARKETS, INC. WELLS FARGO BROKERAGE SERVICES LLC 4.00% 2009 -2014 4.05% 2015 -2016 4.10% 2017 -2018 4.15% 2019 4.20% 2020 4.25% 2021 -2022 4.30% 2023 -2024 4.00% 2009 -2013 4.125% 2014 -2016 4.25% 2017 -2020 4.30% 2021 -2022 4.35% 2023 -2024 $4,182,900.15 $1,641,704.99 $4,193,314.45 $1,658,689.56 4.2524% 4.2894% REOFFERING SCHEDULE OF THE PURCHASER Rate 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.10% 4.125% 4.125% Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Yield 3.81% 3.83% 3.86% 3.90% 3.92% 3.95% 3.97% Par 4.03% 4.06% 4.08% 4.10% 4.12% 4.14% 4. -i6% 4.19% BBI: 4.63% Average Maturity: 9.187 Years BBI 25 -bond (Revenue) and 20 -bond (G.O.) Rates for Five Years Ending June 21, 2007 5.6% — BBI 25 Bond BBI 20 Bond 5.4% 5.2% 5.0% 4.8% 4.6% 4.4% 4.2% W NJ 6/21/2007 25 bond: 4.74% 20 bond: 4.63% 4.0% (1, 6�`L NO r/, ��'L °�`L (1> 6�r1. \Ci C 6��L N°�`L ( 6�`L Dates The Treasury Market U.S. Treasury obligations are the foundation of the credit markets. The accompanying chart provides a five -year trend of bills, notes and bonds covering a range of maturities. 7.00% 6.00% 5.00% d 4.00% c cc 3.00% 2.00% 1.00% 0.00% 10-year, 1-year and 3 -month Treasury Rates for Five Years Ending June 15, 2007 6/15/2007 10 -yr: 5.16% 1 -yr: 4.93% 3 -mnth: 4.56% ro���\OO — 10 -Year — 1 -Year — 3Month Prepared by Springsted Incorporated 4941' 0‘ ( �\o�y�D\ �,�0 �\�1;��\� �\o0��\Oti��\ �\ O��\o�L��\o0��\0'l Dates WEEKLY REPORT LINO LAKES ADMINISTRATIVE REPORT 22 June 2007 MEETING CALENDAR l r day 25 June 5:30 p.m. 1 City Coin cil Work Session & Meeting Wednesday 27 June 6:30 p.m. Environmental Board Administration Employee Appreciation tonight aboard the Anastasia in Stillwater. A letter from a resident of the Shenandoah area is being forwarded for your information. Finance No Report Community Development Find enclosed TKDA's project list. Enclosed is a memorandum from Mary Alice regarding Blue Heron Days. Enclosed is a memorandum from Mary Alice regarding the SMW Credit Union Open House. Public Safety We have submitted a grant request for 2 officers for the enhancement of our Community Oriented Policing and Problem Oriented Policing initiatives. If the requests get approved the formal acceptance of the grant will be submitted to the council for their review and approval or denial. This submission is consistent with our five year staffing plan and funding proposal. We are in the process of drafting a grant for cameras in the squad cars. This is also an initiative to address the five year plan and the funding proposal for the state of the art equipment. We have ordered a new squad car to replace the Tahoe that was recently totaled in Ham Lake as the Chief was returning from training at the Anoka County range. The proper reports have been filed with the League Of Minnesota Cities (LMCIT) and the investigation was completed by the Anoka County Sheriffs Office. The difference between the value of the used squad and the new (approximately $8,000) will be absorbed in the 2007 budget DUI forfeiture funds. The new Tahoe will be equipped as the K -9 vehicle as that was the original transition plan and the current K -9 vehicle is deteriorating rapidly. We have reopened the CSO position recruitment. We have begun our training/partnership with Centennial Lakes PD on proactively dealing with the drug users and abusers in the quad city area. We have cited Millers on Main for Liquor License Violations as they continue to allow patrons to drink and play cards in the bar after the 200 am closing time. We participated in the Torch Run for the Special Olympics running from North Rd. and Sunset through the city to Co Rd J and Centerville Rd. where Ramsey County Sheriffs Office took the torch from there. Sgt. McCarthy and Officer Peterson continued their "Friends and Fitness" program with the Middle School and Senior High School girls. Please find enclosed a memorandum RE: Birch Street. Public Services No Report Don't forget to retrieve messages from your eity hall voice mailbox regularly. Lino Lakes Police Memo To: Chief Pecchia From: Captain Strege Date: June 22, 2007 Re: 1100 Block Birch Street Traffic Study Members of the Lino lakes Police Department have been monitoring the traffic flow in the 1100 block of Birch Street in order to assess the potential impact of dump trucks regularly pulling out on to Birch Street from 12th Avenue as well as Pheasant Run. The study shows that early hours (between 8 am — 10 am) the average number of vehicles westbound to be approximately 140 vehicles per hour while eastbound at that same time is about 150 vehicles per hour. During the afternoon hours of 3 pm — 6 pm the number of vehicles per hour increases. The lowest number of vehicles was 320 eastbound with the maximum being 623. The westbound traffic during this same time frame indicated the low and the high count for number of cars per hour were 299 and 601 respectively. The average count of vehicles per hour in each direction during the hours between those listed above was approximately 175 cars per hour each way. The traffic survey which was completed by officers and volunteers indicated the average speed was near the posted 50 mph limit. The low speed was approximately 40 mph with the top speed was 63 mph. The officers also noted that many of the vehicles were not lone vehicles, but they were traveling in groups of 8 — 15 vehicles at a time. 1 TKDA ENGINEERS • ARCHITECTS - PLANNERS MEMORANDUM To: Copies To: From: Date: James E. Studenski, P.E. Tom Prew, P.E. June 22, 2007 Following is the weekly update through the above date: ITEM 1. Lake Drive / I- 35W Interchange 2. CSAH 14 (I -35E to I -35W) 3. AIT excavation (12th Ave/Birch ) 4. Cox Estates DESCRIPTION Interchange Improvements Anoka County Road Improvements Conditional Use Permit Private Development 5. Pine Glen 2nd Addition 6. 2007 Surface Water Manage. 7. 2007 Sealcoat Private Development Miscellaneous City- wide projects Street Improvements 8. 2007 Overlay Street Improvements 9. CSAH 8/14 Improvements 10. CSAH 49 Bridge 11. Lois Lane Anoka County Road Improvement Anoka County Road Improvement Utility Extension Reference: 1500 Piper Jaffray Plaza 444 Cedar Street Saint Paul, MN 55101 -2140 (651) 292 -4400 (651) 292-0083 Fax www.tkda.com General Items City of Lino Lakes, Minnesota Comm. No. 13809.000 Routing: STATUS Council awarded bid on 05/14/07. Council approved P &Son 03 /12/07. P &Z recommended approval on 05/09/07. P & Z approval at 04/11/07 meeting. Council approved Final Plat on 03/12/07. Council authorized bids 05/14/07. Council awarded contract on 04/09/07. Council awarded contract on 04/09/07. County awarded contract on 02/14/06. Bids awarded 06/26/06. Council awarded contract on 6/26/06 ACTION /OTHER Weekly Construction meeting to be held on 06/12/07. Construction to begin next week. Construction anticipated beginning in July or August 2007. Conditional Use Permit to be presented at 7/9/2007 Council Meeting. Final Plat and Development Agreement approved at 05/14/07 Council Meeting. Construction activity mostly completed under the first phase. Bid opening scheduled for 06/13/07. Sealcoating is complete, first sweeping underway. Construction completed, restoration is underway. Contractor is working on punch list items. Final construction is underway. Punch list items have been completed. Consider Final Payment at 6/25/07 Council Meeting. 12. Marshan Meadows 13. Pine Glen 14. Century Farm North 4th 15. Pomp's Tire 16. Vaughan Addition Private Development Private Development Private Development Private Development Private Development Council approved Dev. Contract on 03/13/06. Council approved Final Plat 05/26/06. Council approved Dev Contract 04/24/06. Performance Agree signed 03/ 30/06. Council approved Final Contractor is working on Punch List Items. Street paving completed. Contractor is working on Punch List Items. Base Course paving completed. Contractor is working on Punch List Items. Contractor working on punch list items. Site meeting held 05/29/07. Contractor working on punch list items. An Employee Owned Company Promoting Affirmative Action and Equal Opportunity City of Lino Lakes Weekly Update Page 2 June 22, 2007 ITEM DESCRIPTION 17. Foxborough Private Development 18. Century Farm North 2nd 19. Century Farm North 3rd 20. Oakwood View Private Development Private Development Private Development 21. Miller's Crossroads 3rd 22. Miller's Crossroads 2nd 23. VFW Private Development Private Development Private Development. 24. Eagle Brook Church 25. Highland Mdws East 2nd Private Development. Private Development. STATUS Plat on 04/11/05. Council approved Plat /Dev Agree 08/10/05. Proj ect nearing completion. City Council approved Final Plat on 03/14/05. Council approved Final Plat/Agree. 07/25/05. Council approved Dev Contract 03/27/06 Council approved Dev. Agree. On 03/28/05. Council approved on 02/09/04. Council approved Dev. Agreement 05/24/04. Project nearing completion. ACTION /OTHER Contractor working on punch list items. RCWD meeting scheduled 06/11/07. Contractor working on punch list items. RCWD meeting scheduled 06/11/07. Contractor working on punch list items. Contractor working on punch list items. Streets have been paved. Contractor is working on punch list Streets have been paved. Contractor working on punch list items. City addressing completion of work. Punch list items near completion. Punch list items near completion. 26. Hailey Manor Private Development Council approved Dev. Contractor has completed punch list items. Agreement 05/24/04. Please direct any questions, revisions, clarification requests, etc., regarding this update to Jim Studenski (651/982- 2430) or Tom Prew at TKDA (651/292- 4463). June 14, 2007 Michael Grochala Community Development Director 600 Town Center Parkway Lino Lakes MN 55014 Dear Mr. Grochala Subject: Call for Hearing on Improvements for Shenandoah Area As a long time resident of the Shenandoah area I attended the June 11, 2007 City Council meeting to learn the status of the proposal for improvements to our area. I was pleased to learn that the City has not forgotten our area entirely and chose to move forward with the resolution. However, I suspect it will be met with the same lack of enthusiasm, as had the previous proposal when it comes time for people to vote on the proposed improvements. Should this not pass I would hope that your Department would come up with a contingency for improving the streets in this area. In particular the streets from Tomahawk and west toward Ware Road are in particularly bad condition. We had some slight improvements to the east a few years ago so our road is a bit more serviceable. But in general the appearance and condition of our roads is poor and getting worse each year. This lack of maintenance affects the overall appearance of the area and gives the feeling that we are somehow second class as compared to adjacent areas that had high gnaiity roads put. in the first place and are maintained routinely as well. It will be interesting to see how the hearings go on this, but I suspect in the end the proposal as written will not gain sufficient backing to allow improvements to go forward as the resulting assessments will be rather high and there appears to be little support city- wide for road or other improvements (unless you live in that area). I look forward to hearing what plans the City may have for trying to improve our roads, should the proposal not be supported. Feel free to share this letter with the Council. Steven Heiskary 572 Arrowhead Court Lino Lakes MEMORANDUM To: Mayor and Council From: Mary Divine Date: June 22, 2007 Re: Blue Heron Days Parade Attached is an application for the 2007 Blue Heron Days Parade. The application should be sent to the address at the bottom of the page if you are planning on being in the parade. You are not required to pay the application fee, although I'm sure the parade managers would be willing to accept any and all donations! Council members will also need to consider what vehicle they will be using for the parade, and identification signs for their vehicle. You may still have the signs you were provided last year. If anyone needs assistance, please let me know. MEMORANDUM To: Mayor and Council From: Mary Divine Date: June 22, 2007 Re: SMW Credit Union The Sheet Metal Workers Credit Union (in the MarketPlace development) is having an open house on Saturday, June 23, if any of you would like to stop by. A ribbon cutting will be held at 3:30 p.m. on Wednesday, June 27. Victoria Hanson, vice president, extended an invitation to all who would like to attend. 700 Apollo Drive 1 Lino Lakes, MN 55014 1 651 - 747 -1500 1 www.grandopeningday.com for more information 1e1.U031eM euOI(J A3 T O O Q 3 CD Cn N CD unj OJOW pue OisnW aim •Jolua3 aanleN oaaeM the U of M Raptor Rehabilitation Program and naturalists from the Live eagle, hawk, falcon and owl up close and personal compliments of 00: LI. EZ aunt 3 'wd00 :edi. • EXPENDITURES JUNE 25, 2007 • • Date: 06/07/2007 Time: 10:28:34 City of JAno Lakes FM Entry - Invoice Journal Ranges: Vendor #: (A) Invoice #: (A) Entry Journal #: (R) 6383 6383 Trans #: (A) Line #• (A) Due Date: (A) Bank #: (A) Operator: JAL Page: 1 Options: Detail / Summary: S Invoice Status: A # of copies: 1 Sort: N Check Over Expend: N Discount Vendor # Name # of items Net Gross Discount Lost 000093 ACE SOLID WASTE, INC. 1 517.66 517.66 .DD .00 000256 DEEP ROCK WATER COMPANY 1 89.21 89.21 .00 .00 000371 cowman ENERGY 1 2,985.54 2,985.54 .00 .00 000519 Bun3L ANDERSON HOMES 1 2,500.00 2,500.00 .00 .00 000983 ADMINISTRATION RESOURCES CORPORATION 1 74.16 74.16 .00 .00 002104 AARDABI,, JULIE 1 65.00 65.00 .00 .00 002694 AMERICAN MESSAGING 1 32.83 32.83 .00 .00 002827 CB73NAN CONSTRUCTION, INC. 2 3,000.00 3,000.00 .00 .00 003230 MECRLE, TERRY 1 43.65 43.65 .00 .00 003260 STANSBERRY, RAY 1 41.16 41.16 .00 .00 003910 SAM'S CLUB, INC. 1 176.62 176.62 .00 004670 COMCAST 1 34.95 34.95 .00 Grand Totals: 13 9,560.78 9,560.78 .00 .00* Date: 06/15/2007 Time: 12:07:18 Ranges: Vendor #: (A) • Invoice #: (A) Entry Journal #: (R) 6398 639B Trams #: (A) Line #: (A) Due Date: (A) Bank #: (A) Options: Detail / Summary: S Sort: N City of Lino Lakes FM Entry - Invoice Journal Operator: JAL Page: 1 Invoice Status: A # of copies: 1 Check Over Expend: N Discount Vendor # Name # of items Net Gross Discount Lost 000020 A & L SUPERIOR SOD CO, INC. 1 48.89 48.89 .00 .D0 000057 PREMIUM WATERS, INC. 1 76.20 76.20 .00 .00 000065 SCHARBER & SONS, INC. 1 66.57 66.57 .00 .0D 000078 GILBERTSON, STEVE 1 111.85 111.85 .DD .00 000100 AID ELECTRIC SERVICE, INC. 1 100.80 100.80 .D0 .00 000147 TRICIA HAYNES 1 1,500.00 1,500.00 .00 .00 000157 ALL SEASONS RENTAL, INC. 3 595.52 595.52 .00 .DD 000210 AMERICAN FASTENER & SUPPLY, INC. 2 83.19 83.19 .00 .00 000234 W.B. MILLER, INC. 1 79,318.92 79,318.92 .00 .00 000303 INSTRUMENTAL RESEARCH, INC. 1 142.50 142.50 .00 .DD 000318 AMERIPRIDE LINEN /APPAREL SERVICES, INC. 1 102.45 102.45 .00 .00 •364 NORTHERN AIR CORPORATION 1 6,611.75 6,611.75 .00 .00 000370 CENTRAL CO94RINICATIONS 1 798.48 798.48 .00 .00 000413 DAKOTA COUNTY RECEIVING CENTER 1 63.0D 63.00 .00 .00 000419 STEVE TUPY TIRE SERVICE, INC. 2 1,963.18 1,963.18 .00 .00 00042D ANOKA COUNTY 1 151.18 151.18 .00 .00 000438 W H RESPONSE 1 62,243.07 62,243.07 .00 .00 000489 TDS METROCOM 1 983.78 983.78 .00 .00 000598 MINNESOTA PIPE F. EQUIPMENT, INC. 2 1,417.53 1,417.53 .00 .00 000620 BEACON ATHLETICS, INC. 1 1,107.13 1,107.13 .00 .DD 000677 PHILIP'S TREE CARE 1 46.93 46.93 .00 .0D 000693 GENERAL SPORTS CORPORATION 2 2,963.36 2,963.36 .00 .00 • Date: 06/15/2007 Time: 12:07:18 City of Lino Lakes FM Entry - Invoice Journal Operator: JAL Page: 2 Vendor # Name # of items Net Gross Discount Disc 000724 BLUE TOW SERVICE, INC. 1 116.83 116.83 .00 .00 000833 BROCK WHITE, INC. 2 1,120.73 1,120.73 .D0 .00 000880 BRYAN ROCK PRODUCTS, INC. 1 2,730.22 2,730.22 .00 .00 000888 JOHNSON, RICK /DEER E BEAVER, INC. 1 90.00 90.00 .00 .00 000900 O'REILLY AUTOMOTIVE, INC. 1 450.32 450.32 .00 .00 000930 WILLIAM G. HAWKINS & ASSOCIATES 1 29,764.00 29,764.00 .00 .00 000946 C. P. OFFICE PRODUCTS 3 437.20 437.20 .00 .00 D01016 MINNESOTA STATE RETIREMENT SYSTEM 1 836.72 836.72 .00 .00 001148 EGAN OIL 2 21,553.62 21,553.62 .00 .00 001260 ACCLAIM BENEFITS 1 190.55 190.55 .00 .O0 001267 FAST BREAK CORNER MARKET, INC. 1 23.95 23.95 .00 .00 001270 DALCO, INC. 2 197.35 197.35 .00 .00 001330 KAEDING AND ASSOCIATES, INC. 1 1,164.00 1,164.00 .00 .00 001511 QUADE, JOAN 1 40.00 40.00 .00 .00 001530 FOREST LAKE FORD, INC. 2 109.43 109.43 .00 .00 001560 FRATT LLONE'S HARDWARE, INC. 1 227.71 227.71 .00 D01561 EMERGENCY AUTOMOTIVE TECHNOLOGIES, INC. 1 120.96 120.96 .00 001660 ONE CALL CONCEPTS, INC. 1 684.40 684.40 .00 .00 001771 HALVORSON CONCRETE, INC. 1 2,748.00 2,748.00 .00 .00 001847 HIRSHFIELD'S PAINT MANUFACTQRING,IN 1 327.49 327.49 .D0 .D0 001860 KENNEDY AND GRAVEN, INC. 4 4,196.45 4,196.45 .00 .00 001967 INTOEI*E"ERS , INC. 2 645.39 645.39 .DD .00 002000 INTL UNION OF OPER ENGR 1 510.00 510.00 .00 .00 002109 AMERICAN INFFRATRUCTURE TECH., INC. 1 747.39 747.39 .00 .DD 002110 KATE AUTO PARTS, INC. 1 142.58 142.58 .D0 .DD 002153 KNOWLAN'S SUPER MARKETS, INC. 1 22.35 22.35 .00 .DO 002175 EOKANSON PLUMBING /HEATING, INC. 1 25.35 25.35 .00 .00 7 Date: 06/15/2007 Time: 12:07:19 City of Lino Lakes FM Entry - Invoice Journal Operator: JAL Page: 3 Discount # Name # of items Net Gross Discount Lost 002178 WILSON DEVELOPMENT SERVICES 1 214.00 214.00 .DD .00 002246 LAR.SON ALLEN, LIP 1 25,000.00 25,000.00 .00 .D0 002260 CLOSE, ANNETTE 1 75.00 75.00 .00 .00 002278 SI RMIX TREE FARMS, LLC 1 400.00 400.00 .D0 .00 002310 LEAGUE OF MINNESOTA CITIES 1 740.00 740.00 .0D .0D 002326 LEEF BROTHER, INC. 1 21.77 21.77 .00 .00 002340 IMAGE PRINTING 8 GRAPHICS, INC. 2 463.66 463.66 .00 .00 002410 LIND LAKES LIONS CLUB 1 400.00 400.00 .00 .00 D02422 SMALLWOOD, C. DAWN 1 75.00 75.00 .00 .00 002478 TRAFFIC DATA, INC. 1 2,070.00 2,070.00 .00 .00 002487 TRANS UNION LLC 1 24.31 24.31 .00 .00 002512 WALDVOGEL, TIM 1 65.00 65.00 .00 .00 002546 REHBEIN PROPERTIES 1 111,439.08 111,439.08 .00 .00 D02570 METRO COUNCIL ENRIVONMENTAL SERVICES 1 72,132.03 72,132.03 .00 .00 002592 TURFWERKS /DAVIT EQUIPMENT CORPORATION 1 42.34 42.34 .00 .00 0^ ?640 RDO EQUIPMENT COMPANY, INC. 1 155,974.04 155,974.04 .D0 .00 •720 MINNESOTA CITY /COUNTY MGMT ASSOC 1 119.45 119.45 .00 .00 002760 MN. DEPT OF HEALTH 1 23.00 23.00 .00 .00 002931 MN CHILD SUPPORT PAYMENT CENTER 1 257.03 257.03 .00 .00 D03070 MTI DISTIBUTING, INC. 1 253.16 253.16 .00 .DD D03091 MN NCPERS LIFE INSURANCE 1 416.00 416.00 .00 .00 003123 NATURE CALLS, INC. 1 993.75 993.75 .00 .00 D02220 FACTORY MOTOR PARTS COMPANY, INC. 1 322.93 322.93 .00 .D0 D03250 XCEL ENERGY 1 5,037.02 5,037.02 .00 .DD 003300 NORTHWAY IRRIGATION /LANDSCAPING 1 1,286.73 1,286.73 .00 .00 003342 NOTT COMPANY, INC. 2 141.09 141.09 .00 .D0 003600 PRESS PUBLICATIONS, INC. 2 .200.20 200.20 .00 .DD • Date: 06/15/2007 Time: 12:07:19 City of Lino Lakes FM Entry - Invoice Journal Operator: JAL Page: 4 Vendor # Name # of items Net Gross Discount 003848 SPARTAN PROMOTIONAL GROUP, INC. 1 2,209.98 2,209.98 .00 .00 003860 =FRIDGE-JOHNSON, INC. 1 98.89 98.89 .00 .00 003882 SHRED -IT, INC. 1 46.00 46.00 .D0 .00 004070 REED BUSINESS INFORMATION 2 410.32 410.32 .00 .00 004240 STREICHER'S, INC. 4 136.72 136.72 .00 .00 004340 T.A. SCHIFSKY AND SONS, INC. 2 1,931.15 1,931.15 .00 .00 004350 T.K.D.A. 27 47,750.43 47,750.43 .00 .00 004420 HEITKE, GORDON 1 49.02 49.02 .00 .00 004530 TURF SUPPLY COMPANY, INC. 2 4,630.09 4,630.09 .00 .00 00456D U S BANK 1 2,693.20 2,693.20 .0D .00 004562 BD SUPPLY WATERWORKS, LTD. 1 41,748.00 41,748.00 .00 .00 00467D COMCAST 1 34.95 34.95 .00 .00 004788 SPRINT 1 78.46 78.46 .00 .00 004840 WINNICK SUPPLY, INC.. 1 65.31 65.31 .00 .00 0048B0 ZACK'S INC. MUN. INDUS. SUP 1 97.94 97.94 .00 .00 006304 TBS OFFICE AUTOMATIONS, INC. 1 293.94 293.94 .00 • 007224 HUGO MILL OUTDOOR POWER 1 454.75 454.75 .0D 900223 REHBEIN TRANSIT, INC. 1 520.00 520.00 .00 .00 900483 DEMOTTES, AL 1 40.00 40.0D .00 .00 900491 ROSEVILLE CITY OF 2 4,672.07 4,672.07 .00 .00 900493 -- _ TREE TRUST _ 1 70 -.00 ___ _70.00 - -_ ---- .DD .00 900494 NORTHERN ESCROW, INC. 1 142,502.86 142,502.86 .00 .00 900524 BURGER, LUANN 1 707.63 707.63 .00 .00 Grand Totals: 151 859,147.57 859,147.57 .00 .00* • Date: 06/15/2007 Time: 12:1 -7:03 • Ranges: Operator: JAL Page: 1 City of Lino Lakes FM Entry - Invoice Payment - Department Report Fund: (A) Dept Id: (A) Program: (A) Vendor #: (A) Invoice #: (A) Schedule Journal #: (R) 6385 Bank #: (A) Options: Print Ranges /Options: Y Page on Department: N Department Vendor Name 6401 # of copies: 1 Description MAYOR /COUNCIL MAYOR /COUNCIL MAYOR /COUNCIL ADMINISTRATION ADMINISTRATION a L'MINISTRATION NI STRATI ON NI STRATI ON ADMINISTRATION ADMINISTRATION ADMINISTRATION CHARTER SENIORS FINANCE FINANCE FINANCE MINNESOTA STATE RETI INTL UNION OF OPER E METRO COUNCIL ENVIRO MN CHILD SUPPORT PAY MN NCPERS LIFE INSOR MECKLE, TERRY II S BANK PAYROLL WITHHOLDING PAYROLL WITHHOLDING MAY SAC PAYROLL WITHHOLDING PAYROLL WITHHOLDING REIMBURSE JURY DUTY MILE COMPUTER PROGRAM /AL R O S BANK COMPUTER PROGRAM /TIM R Total for Department KENNEDY AND GRAVEN, CHARTER TASK FORCE LEAGUE OF MINNESOTA CONFERENCE /JOHN B /JEFF R HEITKE, GORDON REIMBURSE ANOKA CO LIBRA Total for Department 401 PREMIUM WATERS, INC. MONTHLY SERVICE /MAY ADMINISTRATION RESOD COBRA ADMINISTRATION ACCLAIM BENEFITS MINNESOTA CITY /COUNT HEITKE, GORDON U S BANK II S BANK SPRINT FLEXIBLE SPENDING ADMINI MEMBERHIP /MAY -APRIL 'OB REIMBURSE ANOKA CO LIBRA CANCELLATION FEE /GORDON LATE CHARGE /CRAGUNS MONTHLY SERVICE /MAY Total for Department 402 PRESS PUBLICATIONS, CHARTER COMMISSION Total for Department 405 TDS METROCOM MONTHLY SERVICE /JUNE Total for Department 406 LARSON ALLEN, LLP II S BANK ROSEVILLE, CITY OF PROGRESS BILLING /AUDIT 1 REGISTRATION /AL R JUNE BILLING Total for Department 407 LEGAL CONSULTANTS WILLIAM G. HAWKINS & CRIMINAL ATTORNEY LEGAL CONSULTANTS WILLIAM G. HAWKING A MUNICIPAL ATTORNEY Total for Department 414 • Amount 836.72 510.00 27,447.75 257.03 416.00 43.65 1,6B6.96 90.50 31,288.61* 3,202.50 740.00 18.21 3,960.71* 45.63 74.16 190.55 119.45 30.81 25.00 10.65 78.46 574.71* 14.BD 14.BD* 3B.D7 3B.07* 10,269.09 B0.00 2,846.67 13,195.76* 24,308.0D 3,727.40 28,035.40* Date: D6/15/2007 Time: 12:17:03 Department Operator: JAL Page: 2 City of T;no Lakes FM Entry - Invoice Payment - Department Report Vendor Name Description Amount PLANNING & ZONING T.R.D.A. ENGINEERING ENGINEERING ENGINEERING ENGINEERING ENGINEERING ENGINEERING COMM DEV POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE POLICE Total for TRAFFIC DATA, INC. T.K.D.A. T.K.D.A- T.K.D.A. T.K.D.A. U 5 HANK Total for Total for COMP PLAN /MAY Department 416 TRAFFIC COUNT '07 GENERAL ENGINEERING/ 49 CLUB /MAY HARDWOOD CREEK /MAY SHENAN0OA /MAY W SHADOW LK DR /MAY Department 417 REGISTRATION /LISA H Department 418 PREMIUM WATERS, INC. AID ELECTRIC SERVICE ALL SEASONS RENTAL, CENTRAL COMMUNICATIO CONNEXUS ENERGY DAKOTA COUNTY RECEIV TDS METROCOM C. P. OFFICE PRODUCT FAST BREAK CORNER MA INTOXIMETERS, INC. KATH AUTO PARTS, INC IMAGE PRINTING & GRA TRANS UNION LLC SPARTAN PROMOTIONAL SHRED -IT, INC. SAM'S CLUE, INC. STREICHER'S, INC. STREICHER'S, INC. STREICHER'5, INC. STREICHER'S, INC. II 6 BANK II 6 BANK O 6 BANK II S BANK U S BANK REHBEIN TRANSIT, INC Total for MONTHLY SERVICE /MAY SIREN REPAIR TRAILER RENTAL INTERNET ACCESS /MAY MONTHLY SERVICE /MAY DETOX TRANSPORTATION /MAY MONTHLY SERVICE /JUNE OFFICE SUPPLIES CAR WASHES MOUTHPIECE RECEIVER NEWST.ETrR CREDIT REPORTS FLYING DISCS DESTROY CONFIDENTIAL MAT OPEN HOUSE /SENIOR FAIR CLIP -ON TIE /EXPLORERS FLASHLIGHT HOLDER GLOVE POUCH /EXPLORERS SOLVENT /PATCHES /BRUSH BALLOONS/PINWHEELS/BATON DARE SUPPLIES LODGING MEMORIAL WREATH SMARTPHONE TRANSPORT SCHOOL -M 0 A Department 420 BUILDING INSPECTIONS IMAGE PRINTING & GRA PERMITS BUILDING INSPECTIONS T.K.D.A. '07 GENERAL ENGINEERING/ Total for Department 422 STREETS STREETS STREETS STREETS A & L SUPERIOR 50D C SOD CONNEXUS ENERGY MONTHLY SERVICE /MAY TDS METROCOM MONTHLY SERVICE /JUNE BROCK WHITE, INC. ROADSAVER 1,215.16 1,215.16* 2,070.0D 13,636.78 63.03 326.13 58.96 513.96 16,213.86* 125.00 125.00* 30.57 100.BD 456.99 798.48 21.31 63.0D 660.06 184.34 23.95 645.39 142.5B 194.68 24.31 2,209.9B 46.00 117.2D 14.97 26.61 60.55 34.59 99.53 54.99 71.51 90.0D 44.9D 520.0D 6,737.29* 268.98 2,038.39 2,307.37* 46.89 961.49 38.07 1,113.99 • • Date: 06/15/2007 • Department Time: 12:17:04 Operator: JAL Page: 3 City of Lino Lakes FM Entry - Invoice Payment - Department Report Vendor Name Description Amount STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS F xTT FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET OITT GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNII+MENT BUILDINGS GOVERMENT BUILDINGS GOVERNMENT BUILDINGS GOVERNMENT BUILDINGS PARKS • BROCK WRITE, INC. BRYAN ROCK PRODUCTS, JOHNSON, RICK /DEER & O'REILLY AUTOMOTIVE, FRATTALLONE'6 HARDWA HALVORSON CONCRETE, AMERICAN MESSAGING REED BUSINESS INFORM REED BUSINESS INFORM T.A. SCHIFSKY AND SO T.K.D.A. SERVICE CHARGE DIAMOND AGG DEER REMOVAL /1 FILTERS /SPARK PLUGS /DYE/ FOAM /FASTENERS /BOLT /KEYS CURB REPAIR MONTHLY SERVICE /JUNE AD /'07 SURFACE WATER LEGAL AD /'07 SURFACE WAT ASPHALT '07 SURFACE WATER /MAY Total for Department 430 SCHARBER & SONS, INC LAMPS AMERICAN FASTENER & WAGHER /B% CAP /NUTS /CABLE STEVE TUPY TIRE SERV TIRE REPAIR STEVE TUPY TIRE SERV TIRES /SUPPLIES /FLUID O'REILLY AUTOMOTIVE, FILTERS /SPARK PLUGS /DYE/ EGAN OIL GASOHOL /DIESEL FOREST LAKE FORD, IN SENSOR FOREST LAKE FORD, IN TEST SYSTEM /FORD EMERGENCY AUTOMOTIVE STROBE TUBE LEEF BROTHER, INC. SHOP TOWELS TURFWERXS /DAVIS EQUI SHIELD MTI DISTIBUTING, INC BELTS /WHEEL ASSEMBLY CONNECTOR /PAD KIT /ROTOR/ CAP & PULG ASSEMBLY PLUG ASSEMBLY SOLENOID CROWN V FACTORY MOTOR PARTS NOTT COMPANY, INC. NOTT COMPANY, INC. RUFFRIDGE - JOHNSON, I HUGO MILL OUTDOOR PO TIRE ASSEMBLY /ROLLER /TRA Total for Department 431 ACE SOLID WASTE, INC AMERICAN FASTENER & DEEP ROCK WATER COMP AMERIPRIDE LINEN /APP NORTHERN AIR CORPORA CONNE%US ENERGY TDS METROCOM C. P. OFFICE PRODUCT DALCO, INC. DALCO, INC. KAEDING AND ASSDCIAT XCEL ENERGY STANSBERRY, KAY COMCAST ROSEVILLE, CITY OF MONTHLY SERVICE /JUNE H% CAP MONTHLY SERVICE /MAY MAT FETAL REPLACE BOILER SECTION MONTHLY SERVICE /MAY MONTHLY SERVICE /JUNE OFFICE SUPPLIES TOWELS /SPONGE TOWELS /TISSUE ELECTRICAL SERVICES /GENE MONTHLY SERVICE /MAY REIMBURSE CLOTHING ALLOW MONTHLY SERVICE /JUNE ITPS BILLING (SMARTNET /V Total for Department 432 6.74 2,730.22 90.00 51.55 26.35 2,748.00 10.94 205.16 205.16 1,931.15 5,240.60 15,408.31* 66.57 72.65 80.73 1,882.45 398.77 21,553.62 50.30 59.13 120.96 21.77 42.34 253.16 322.93 63.52 77.57 98.89 408.64 25,574.00* 384.98 8.03 89.21 102.45 6,611.75 889.36 133.37 252.86 100.31 97.04 1,164.00 5,028.50 41.16 69.90 1,825.40 16,796.32* GILBERTSON, STEVE REIMBURSE CLOTHING ALLOW 111.85 Date: 06/15/2007 Time: 12:17:04 Operator: JAL Page: 4 City of Lino Lakes FM Entry - Invoice Payment - Department Report Department Vendor Name Description Amount PARIS ACE SOLID WASTE, INC MONTHLY SERVICE /JUNE 132.68 PARKS ALL SEASONS RENTAL, TRENCHER RENTAL 77.28 PARKS AMERICAN FASTENER & E% CAP 2.51 PARKS CONNEXUS ENERGY MONTHLY SERVICE /MAY 7.99 PARRS BEACON ATHLETICS, IN SOCCER SET /MARKER KIT /AN 1,107.13 PARKS PHILIP'S TREE CARE APPLY HERBICIDE 46.93 PARKS FRATI.LLONE'S HARDWA FOAM/FASTENERS/BOLT/KEYS 122.68 PARKS HIRSHFIELD'S PAINT M FIELD STRIPING 327.49 PARKS NATURE CALLS, INC. PORTABLE RESTROOM RENTAL 993.75 PARKS NORTHWAY IRRIGATION / NOZZLE /SOLENOID 1,2B6.73 PARKS TURF SUPPLY COMPANY, MAINTENANCE SUPPLIES 4,536.9D PARKS TURF SUPPLY COMPANY, PRODEUCE 93.19 PARKS ZACK'S INC. MUN. IND BROOMS 97.94 PARRS TBS OFFICE AUTOMATIO MAINTENANCE CONTRACT 191.06 PARKS HUGO MILL OUTDOOR PO TIRE ASSEMBLY /ROLLER /TRA 46.11 Total for Department 450 9,182.22* RECREATION FRATTALLDNE'5 HARDWA FOAM /FASTENERS /BOLT /KEYS 21.19 RECREATION SAM'S CLUB, INC. PROGRAM REC SUPPLIES 55.19 RECREATION TBS OFFICE AUTOMATIO MAINTENANCE CONTRACT 102.88 Total for Department 451 179.26* ENVIRONMENTAL TREE TRUST REGISTRATION /TIM P & MAR 70.00 Total for Department 461 70.00* SOLID WASTE TRICIA HAYNES ENVIRO -SHOWS 1,500.0D SOLID WASTE KNOWLAN'S SUPER MARK RECYCLING DAY 22.35 SOLID WASTE LIND LAKES LIONS CLU RECYCLING DAY 400.00 SOLID WASTE DEMOTTES, AL STIPEND /RECYCLING DAY 40.00 Total for Department 462 1,962.35* FORESTRY ALL SEASONS RENTAL, STUMP GRINDER RENTAL 61.25 Total for Department 463 61.25* Total for Fund 101 172,942.45* QUADE, JOAN REIMBURSE PROGRAM REC 40.00 AARDAHL, JULIE REIMBURSE .PROGRAM EEC - --- -- -_65_.0.0 CLOSE, ANNETTE REIMBURSE PROGRAM REC 75.00 SMALLWOOD, C. DAWN REIMBURSE PROGRAM REC 75.00 WALDVOGEL, TIM REIMBURSE PROGRAM REC 65.00 Total for Department 320.00* PROGRAM REC LARSON ALLEN, LLP PROGRESS BILLING /AUDIT 1 222.99 Total for Department 200 222.99* SPECIAL EVENTS /TRIPS SAM'S CLUB, INC. PROGRAM REC SUPPLIES 4.23 Total for Department 205 4.23* YOUTH INSTRUL.LONAL GENERAL SPORTS CORPO T- SHIRTS 744.80 • • • Date: 06/15/2007 Time: 12:17:04 Operator: JAL • Page: 5 City of Lino Lakes FM Entry - Invoice Payment - Department Report Department Vendor Name Description Amount YOUTH INSTRUCTIONAL BURGER., LUANN DANCE CLASS Total for Department 207 YOUTH SPORTS OTHER OTHER FLEET OTEERR GENERAL SPORTS CORPD JERSEYS /PROTECTORS /GOALI Total for Department 208 707.63 1,452.43* 2,218.56 2,218.56* Total for Fund 201 4,218.21* LARSON ALLEN, LLP PROGRESS BILLING /AUDIT 1 1,067.05 Total for Department 499 1,087.05* Total for Fund 301 1,087.05* LARSON ALLEN, LLP PROGRESS BILLING /AUDIT 1 1,225.73 Total for Department 499 1,225.73* Total for Fund 401 1,225.73* RDO EQUIPMENT COMPAN JOHN DEERE PLOW/ATTACHME 155,974.04 Total for Department 431 155,974.04* Total for Fund 402 155,974.04* T.K.D.A. LINO PARK GRADING /APRIL Total for Department 499 2,072.38 2,072.38* Total for Fund 405 2,072.38* LARSON ALLEN, LLP PROGRESS BILLING /AUDIT 1 3,083.51 AR REHBEIN PROPERTIES REIMS 21ST AVE INFRASTRU 111,439.08 T.K.D.A. 'D7 GENERAL ENGINEERING/ 2,638.13 OTHER T.K.D.A. LOIS LANE /MAY 182.48 OTHER T.K.D.A. WATER TREATMENT /MAY 5,750.20 Total for Department 499 123,093.40* OTHER OTHER OTHER OTHER OTHER • T.K.D.A. T.K.D.A. Total for Fund 406 123,093.40* '07 OVERLAY /MAY '07 SEALCOAT /MAY Total for Department 499 3,203.99 259.55 3,463.54* Total for Fund 421 3,463.54* LARSON ALLEN, LLP PROGRESS BILLING /AUDIT 1 T.K.D.A. '06 WATER MANAGEMENT /MAY Total for Department 499 367.49 102.98 470.47* Total for Fund 422 470.47* W.B. MIT,T.PR, INC. CONTRACTOR /REGIONAL TRAI 79,318.92 Date: 06/15/2007 Time: 12:17:04 Department Operator: JAL Page: 6 City of Lino Lakes FM Entry - Invoice Payment - Department Report Vendor Name Description Amount OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER WATER WATER WATER WATER WATER WATER WATER WATER WATER WATER WATER WATER WATER WATER WATER WATER SEWER SEWER SEWER SEWER SEWER SEWER SEWER SEWER SEWER SEWER ANOKA COUNTY W H RESPONSE WILLIAM G. HAWKINS & KENNEDY AND GRAVEN, WILSON DEVELOPMENT 9 PRESS PUBLICATIONS, NORTHERN ESCROW, INC Total for Total for T. K.D.A. Total for PROPERTY TAXES PAYABLE 2 148.96 STREET LIGHTING /LEGACY 62,243.07 MUNICIPAL ATTORNEY 1,460.60 LEGAL SERVICES /APRIL 630.00 ACvuISITION /RELOCATION -M 214.00 INFO MEETING I35 /LAKE DR 185.40 JAY BROTTHERS /LEGACY -PHAS 142,502.86 Department 499 286,703.81* Fund 471 286,703.81* CSAH 6/14 -MAY Department 499 Total for Fund 472 INSTRUMENTAL RESEARC CONNEXUS ENERGY TDS METRDCOM MINNESOTA PIPE & EQU MINNESOTA PIPE & EQU FRATTALLONE'S HARDWA ONE CALL CONCEPTS, I HOKANSON PLUMBING /HE LARSON ALLEN, LLP AMERICAN MESSAGING MN. DEPT OF HEALTH T.K.D.A. U S BANK HD SUPPLY WATERWORKS WINNICR SUPPLY, INC. WINNICK SUPPLY, INC. WATER SAMPLES MONTHLY SERVICE /MAY MONTHLY SERVICE /JUNE MARKING PAINT PLUNGER /RING /TUBE /GASKET FOAM/FASTENERS/BOLT/KEYS MONTHLY SERVICE /MAY SILLCOCK KEYS PROGRESS BILLING /AUDIT 1 MONTHLY SERVICE /JUNE WATERWORKS OPERATION LIC WATER /CONSERVATION PLAN/ LETTER OPENER MXU SINGLE PORT HOSES TUBING Total for Department 494 Total for Fund 601 CONNEXUS ENERGY FRATTALLONE'S HARDWA ONE CALL CONCEPTS, I AMERICAN INFFRATRUCT LARSON ALLEN, LLP SHERN+IR TREE FARMS, METRO COUNCIL ENVIRO AMERICAN MESSAGING XCEL ENERGY U 9 BANK Total for MONTHLY SERVICE /MAY FOAM/FASTENERS/BOLT/KEYS MONTHLY SERVICE /MAY JOINT SEAL PROGRESS BILLING /AUDIT 1 BALSAM FIRS /2 JULY SEWER MONTHLY SERVICE /JUNE MONTHLY SERVICE /MAY LETTER OPENER Department 495 Total for Fund 602 1,131.46 1,131.46* 1,131.46* 142.50 858.89 114.21 111.70 1,305.83 41.61 342.2D 25.35 3,810.71 16.41 23.00 486.78 157.08 41,748.00 22.37 42.94 49,249.58* 49,249.58* 246.50 15.88 342.2D 747.39 4,933.43 400.00 44,684.26 5.48 8.52 157.08 51,540.76* 51,540.76* • • • Date: 06/15/2007 Time: 12:17:04 • Department Operator: JAL Page: 7 City of Lino Lakes FM Entry - Invoice Payment - Department Report Vendor Name Description Amount • • ANOKA COUNTY BRANDL ANDERSON HOME BLUE TOW SERVICE, IN WILLIAM G. HANKINS & KENNEDY AND GRAVEN, KENNEDY AND GRAVEN, CHENAN CONSTRUCTION, CAENAN CONSTRUCTION, T.K.D.A. T.K.D.A. T.K.D.A. T.K.D.A. T.K.D.A. T.K.D.A. T.K.D.A. T.K.D.A. T.R.D.A. T.K.D.A. T.K.D.A. Total for PROPERTY TAXES PAYABLE 2 8075 20TE AVENUE /REIMS B '00 MERCURY SABLE MUNICIPAL ATTORNEY /GOLDE LAKEWOOD APARTMENTS /APRI LEGACY AT WOODS EDGE /TIF 6576 SHERMAN LAKE /REIMS 7132 2ND AVENUE /REIMS BL APOLLO LANDING /MAY CENTURY FARMS 2 /MAY CENTURY FARMS 4 /MAY COX ESTATES /MAY GRANDVIEW /MAY HOLIDAY STATION /MAY LAMOTTE PROPERTY /MAY MAIN STREET VILLAGE /MAY MILLERS CROSSROAD 2 /MAY MOLIN /MAY PINE GLEN 2 /MAY POMPS TIRE /MAY Department Total for Find 801 2.22 2,500.00 116.83 268.00 207.95 156.00 2,500.00 500.00 326.13 226.27 226.27 458.72 1,267.80 65.23 3,812.77 1,609.67 234.03 214.09 582.59 260.90 15,535.47* 15,535.47* Grand Total 868,708.35* CENTENNIAL FIRE DISTRICT Check Register FIRE GL GL Posting Period(s): 06/07 - 06/07 Check Issue Date(s): 06/02/2007 - 06/19/2007 Page: 1 Jun 19, 2007 02:54pm Per Date Check No Vendor No 06/07 06/19/07 06/07 06/07 06/07 06/07 06/19/07 06/19/07 06/19/07 06/19/07 06/07 06/19/07 Total 2751 Payee Invoice Description Inv Amount 2746 20140 MILO BENNETT 2747 30465 2748 31008 2749 31137 2750 40200 CENTENNIAL FIREFIGHTERS RELIEF COMCAST CONNEXUS ENERGY DIVERSIFIED TEXTURING & 2751 50120 EMERGENCY APPARATUS MAINT, IP 06/07 06/19/07 2752 06/07 06/19/07 2753 06/07 06/19/07 2754 '120450 CITY OF LINO LAKES 120490 LOFFLER COMPANIES, INC 130205 MMKR, INC 06/07 06/19/07 2755 130348 06/07 06/19/07 2756 130826 06/07 06/19/07 2757 130827 06/07 06/19/07 2758 140408 06/07 06/19/07 2759 150150 06/07 06/19/07 2760 170180 06/07 06/19/07 2761 180450 06/07 06/19/07 2762 190650 06/07 06/19/07 2763 220200 06/07 06/19/07 2764 240100 Totals: MCLEOD USA MN DEPT OF HEALTH MN STATE COLLEGES & UNIV NEXTEL COMMUNICATIONS GLEN A OLSON QWEST ROBOTRONICS, INC SOUTH CENTRAL COLLEGE VERIZON WIRELESS XCEL ENERGY XP PRO SOFTWARE 5 1,072.49 COPIES 2007 1ST /2ND QTR PMTS 12,250.00 JUNE INTERNET 95.00 STATION 1 ELECTRIC 358.01 ENGRAVED EQUIP 60.00 PLATES ENGINE 21 MTC 516.80 ENGINE 31 MTC 516.80 TANKER 21 MTC 466.85 TANKER 31 MTC 466.85 UTILITY 12 MTC 516.80 EMERGENCY 1,436.09 GENERATOR MTC 3,920.19 MAY REIMBURSEMENTS 20,024.47 COPIER MTC 68.56 FINAL 2006 AUDIT 4,217.00 BILLING STATION 2 PHONE 363.05 2007 HOSPITALITY FEE 35.00 HEARTSAVER CARDS 64.20 CELL PHONES 149.01 CHIEFS VEHICLE MTC 58.12 PHONE EXPENSE 214.28 PLANTRONICS HEADSET 90.10 EMS RESCUE SCHOOL 85.00 COMMUNICATIONS 4.65 STATION 2 ELECTRIC 527.22 43,656.35 M = Manual Check, V = Void Check • • • AGENDA ITEM 1 D STAFF ORIGINATOR: Julie Bartell, City Clerk MEETING DATE: June 25, 2007 TOPIC Consider 2007 Tobacco License Renewals VOTE REQUIRED: Simple Majority (3/5 Vote Required) BACKGROUND: All tobacco licenses in the City of Lino Lakes expire on June 30, 2007. Staff has been working with the license holders to put in place all renewal information so as to allow for Council consideration at this time. Attached is a list of the establishments that have submitted renewal applications. As indicated, the applicants have completed the necessary documentation and paid the required fee for the license. The Police Department has completed background investigations for the applicants and has indicated no new information that would lead to a denial of any of these licenses. OPTIONS: 1. Adopt Resolution 07 -89 approving renewal of tobacco licenses for the period of July 1, 2007 through June 30, 2008. 2. Deny any or all of said licenses. ATTACHMENT: 1. 2007 Tobacco License Renewal List Council Member introduced the following resolution and moved its adoption: CITY OF LINO LAKES COUNTY OF ANOKA RESOLUTION NO. 07-89 APPROVING THE RENEWAL OF TOBACCO LICENSES FOR THE 2007/2008 LICENSING PERIOD WHEREAS, the licensing period for tobacco licenses in the City of Lino Lakes is one year, commencing on July 1 and ending on June 30 the following year; WHEREAS, the City Council is required to approve the renewal of tobacco licenses; WHEREAS, city staff has reviewed the renewal applications that have been submitted and verified that licensing requirements are met; WHEREAS, the Lino Lakes Police Department has completed the required background investigations; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: The City of Lino Lakes hereby adopts Resolution No. 07 -89 approving the renewal of tobacco licenses as set forth in Exhibit A that is attached to this resolution. Adopted by the Council of the City of Lino Lakes this 25th day of June, 2007. John Bergeson, Mayor Julianne Bartell, City Clerk Adopted by the Lino Lakes City Council this 25th day of June, 2007. The motion for the adoption of the foregoing resolution was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: • • Updated 6/11/2007 2007 Tobacco License Renewals Applicant License Type Background Fees License # Steve Arhip, Jr, Lakes Liquor of Lino Lakes 7860 Lake Drive (55014) Tobacco X (Pd w/liquor license) T -07 -01 LTV & Associates, Inc. Tobacco X (Pd d/b /a/ J &K Liquors 6013 Hodgson Road (55014) w/liquor license) T -07 -02 Eagle Liquor and Tobacco, Inc. Tobacco X (Pd d/b /a Eagle Liquor and Tobacco 730 Apollo Drive, #190 (55014) w/liquor license) T -07 03 Spirit Hills Wine & Liquor, Inc. Tobacco X (Pd d/b /a Spirit Hills Wine & Liquor 6501 Ware Road (55014) w/liquor license) T -07 -04 Trapper's Bar & Grill, LLC Tobacco X (Pd d/b /a Trapper's 6810 Lake Drive (55014) w/liquor license) T -07 -05 American Legion Post 566 Tobacco X (Pd 7731 Lake Drive (55014) w/liquor license) T-07-06 Holiday Stationstores Tobacco d/b /a Holiday Stationstore #376 X T41707 7509 Lake Drive (55014) Q. & S. Inc. Tobacco d/b /a Lino Lakes Quik Stop X T -07 -08 6501 Ware Road, Suite 360 (55014) Jason's Bobby & Steve's Auto World Tobacco 7090 21s` Av (55038) X T -07 -09 Fast Break on Main Tobacco 7997 Lake Drive (55014) X T -07 -10 Fast Break Tobacco 7601 Lake Drive (55014) X T -07 -11 Brownstone Liquors, Inc. d/b /a MGM Wine & Spirits Tobacco X T -07 -12 709 Apollo Drive (55014) All approvals are contingent upon the applicant(s) finally meeting all state and local requirements. All approvals are for the period of July 1, 2007 through June 30, 2008 (except where noted otherwise) All licenses approved by the Council on (except where noted otherwise) • • • AGENDA ITEM 1 E STAFF ORIGINATOR: Julie Bartell, City Clerk DATE: June 25, 2007 TOPIC: Resolution No. 07 -90, Approving Solicitor's License for Pro Alarm VOTE REQUIRED: Simple Majority (3/5 Vote) BACKGROUND: Mr. Jacob Schmalz, Manager of Pro Alarm, and eleven Pro Alarm marketing agents, have submitted an application for a solicitor license. If the application is approved, the marketing agents will be going door -to -door promoting installation of Honeywell home protection systems. The applicants have complied with and have agreed to continue to comply with the provisions of the Lino Lakes City Code, including the background check. The Lino Lakes Police Department indicated that the background checks came back clear and there would be no reason to recommend denial of the license. The application and all other required information is on file in the city clerk's office for review. OPTIONS: 1. Approve Resolution No. 07 -90 2. Deny Resolution No. 07 -90 RECOMMENDATION: Option No. 1 Council Member introduced the following resolution and moved its adoption: CITY OF LINO LAKES COUNTY OF ANOKA RESOLUTION NO. 07 -90 APPROVING ISSUANCE OF A SOLICTOR LICENSE TO PRO ALARM WHEREAS, Jacob Schmalz, Manager of Pro Alarm (a company marketing Honeywell home protection systems) and eleven marketing agents of Pro Alarm have submitted an application for a solicitor license to the city clerk's office; and WHEREAS, the applicants have complied with all of the provisions of Chapter 612 of the Lino Lakes City Code for obtaining a license for a profit business; and WHEREAS, the applicants have been provided with a copy of Chapter 612 of the Lino Lakes City Code and have agreed to comply with the regulations for maintaining a license; and WHEREAS, the Lino Lakes Police Department has completed the required background investigations and has found no reason to deny the license; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: The City of Lino Lakes hereby adopts Resolution No. 07 -90 approving issuance of a solicitor license to Pro Alarm, to be effective for a six -month period_ commencing upon passage of this resolution. Adopted by the Council of the City of Lino Lakes this 25th day of June, 2007. John Bergeson, Mayor Julianne Bartell, City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against said resolution: • • • • STAFF ORIGINATOR: MEETING DATE: TOPIC: VOTE REQUIRED: BACKGROUND: AGENDA ITEM 1F Julie Bartell, City Clerk June 25, 2007 Consider Resolution No. 07 -91, Approving renewal of a private kennel license, for Margo Polta of 575 Ash Street Simple Majority (3/5 Vote) The Lino Lakes City Code, Section 502 regarding Dogs, sets forth the process and conditions for issuance of dog kennel licenses. There are two types of licenses, private and commercial. A private license is required to keep more than two but not more than four adult dogs for private pets with no sale of animals intended. A commercial license is required to keep more than two adult dogs for other purposes such as breeding, boarding, grooming or any merchandising. To obtain either a private or commercial kennel license, it is required that the property where the kennel would be located be approved for a conditional use permit. The Planning and Zoning Board holds a public hearing, with notification to area property owners, on the conditional use only. If a conditional use permit is approved, an application for a license can then be submitted. Margo Polta, 575 Ash Street, was granted a conditional use permit by the City on September 11, 2006 for a private kennel facility that allows her to have three dogs on her property; she was granted a license by the City Council on February 12, 2007. All kennel licenses expire in April with renewal through June. Ms. Polta has applied for renewal of her private kennel license. Based on the requirements of the city code, the Police Department conducted an investigation of Ms. Polta's property and completed a checklist indicating the applicant's conformance to the licensing requirements. It is the recommendation of the Police Department that Ms. Polta's private kennel license be renewed. OPTIONS: 1. Approve Resolution No. 07 -91, approving the renewal of a private kennel license for Margo Polta, 575 Ash Street 2. Deny Resolution No. 07 -91 Council Member introduced the following resolution and moved its adoption: CITY OF LINO LAKES COUNTY OF ANOKA RESOLUTION NO. 07 -91 APPROVING RENEWAL OF A PRIVATE DOG KENNEL LICENSE FOR MARGO POLTA, 575 ASH STREET WHEREAS, the Lino Lakes City Code, Section 502, regarding Dogs, establishes the process and conditions under which the City Council may renew a kennel license; and WHEREAS, Margo Polta, 575 Ash Street, was granted a private dog kennel license on February 12, 2007; and WHEREAS, all kennel licenses expire on April 30 each year with renewal applications accepted through June; and WHEREAS, Margo Polta submitted an application to renew her private kennel license; and WHEREAS, the City Code requires that a conditional use permit be in place for any property considered for a kennel license, and a conditional use permit for 575 Ash Street was approved by the City Council on September 11, 2006; and WHEREAS, the Lino Lakes Police Department has inspected the site of the proposed kennel, completed a checklist indicating that the premises, the dogs and the applicant are in compliance with city and state requirements for a kennel license; and WHEREAS, the City Council reserves the right to impose reasonable conditions upon the license and if the licensee fails to comply with the conditions_orother requirements set forth in the code, the license can be revoked with due process; NOW, THEREFORE, BE IT RESOLVED that the Lino Lakes City Council hereby approves the application of Margo Polta for renewal of a private kennel license at 575 Ash Street. ATTEST: Julianne Bartell, City Clerk John J. Bergeson, Mayor Adopted by the Lino Lakes City Council this 25th day of June, 2007 The motion for the adoption of the foregoing resolution was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: -34- • • • AGENDA ITEM 1G STAFF ORIGINATOR: James E. Studenski, City Engineer COUNCIL MEETING DATE: June 25, 2007 TOPIC: Resolution No. 07 -92, Approving Payment Request No. 4 (Final) and Compensating Change Order No. 1, Lois Lane Utility Improvement Project. VOTE REQUIRED: 3/5 Vote Required BACKGROUND: The contractor for the Lois Lane Utility improvement project, Jay Bros., Inc. is requesting City approval of Payment Request No. 4 (Final) in the amount of $8,674.23. A copy of the Final Payment is attached. The contractor has satisfactorily completed all work and has provided all necessary documentation. Also included with the request for Final Payment is Compensating Change Order No. 1 in the deduct amount of $12,923.70. A copy of the Compensating Change Order is attached. With this Change Order, the final contract amount is $173,484.60, which is below the contract of $186,408.30. Approval of the Final Payment will begin the one -year warranty period. RECOMMENDATION: Staff recommends approval of Resolution 07 -92, Payment Request No. 4 (Final) and Compensating Change Order No. 1, Lois Lane Utility Improvements Project. Council Member introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 07 -92 RESOLUTION APPROVING PAYMENT REQUEST NO. 4 (FINAL) AND COMPENSATING CHANGE ORDER NO. 1 — LOIS LANE UTILITY IMPROVEMENT PROJECT WHEREAS, the Lois Lane Sanitary, Street and Watermain Improvements have been completed by Jay Bros., Inc., and WHEREAS, the one -year warranty period for this project will begin with the Final Payment. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: Compensating Change Order No. 1 and Payment Request No. 4 (Final) is approved for a final contract amount of $173,484.60. John Bergeson, Mayor Julianne Bartell, City Clerk Adopted by the Lino Lakes City Council this 25th day of June, 2007. The motion for the adoption of the foregoing resolution was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Whereupon said resolution was declared duly passed and adopted. • • TKDA • ENGINEERS • ARCHITECTS • PLANNERS 444 Cedar Street, Suite 1500 Saint Pau(, MN 55101 -2140 (651) 292-4400 (651) 292-0083 Fax www.tkda.com Pro}. No. 13455.001 Cert. No. 4(F) St. Paul, MN, June 12 , 2007 To City of Lino Lakes. Minnesota. This Certifies that Jay Bros., Inc. For Lois Lane Utility Extension Owner , Contractor Is entitled to being 4th Eight Thousand Six Hundred Seventy -Four Dollars and 23/100 FINAL estimate for pawl payment on contract with you dated June 26, Received payment in full of above Certificate. TKDA Jay Bros., Inc. -(5 8.674.23) 2006 , 20 Thomas D. Prew, • RECAPITULATION OF ACCOUNT An Employee Owned Company I - 37 - Affirmative Action and Equal Opportunity CONTRACT PLUS EXTRAS PAYMENTS CREDITS Contract price plus extras $ 186,408.30 All previous payrrents $ 164,810.37 All previous credits Extra No. Compensating Change Order No. 1 $ (12,923.70) Credit No. $ - tt 11 11 11 AMOUNT OF TBJS CER11.11CA1'h. $ 8,674.23 TorRis $ 173,484.60 $ 173,484.60 $ - Credit Balance $ - There will remain unpaid on contract after payment of this Certificate $ - $ 173.484.60 1 $ 173,484.60 1 S - An Employee Owned Company I - 37 - Affirmative Action and Equal Opportunity TKDA Engineers- Architects- Planners PERIODICAL ESTIMATE FOR PARTIAL PAYMENTS Estimate No. 4(F) Period Ending June 12 2007 Page 1 of 1 Proj. No. 13455.001 Contractor Jay Bros. Inc. Original Contract Amount $186,408.30 Project Lois Lane Utility Extension Location City of Lino Lakes • Total Contract Work Completed Total Approved Credits Total Approved Extra Work Completed $ 0.00 Approved Extra Orders Amount Completed Total Amount Earned This Estimate $ 173,484.60 $ 0.00 $ 0.00 $ 173,484.60 Less Approved Credits $ 0.00 Less 0 % Retained $ 0.00 Less Previous Payments $ 164,810.37 Total Deductions $ Amount Due This Estimate ArlIWP Date June 12, 2007 Date 164,810.37 $ 8,674.23 y/07 • • ESTIMATE NO. 4(F) LOIS LANE UTILITY IMPROVEMENTS CITY OF LINO LAKES, MINNESOTA PROJECT NO. 13455.001 ITEM NO. DESCRIPTION DIVISION I - SANITARY SEWER CONSTRUCTION 1 MOBILIZATION 2 CONNECT TO EXISTING SEWER STUB OR MANHOLE 3 SANITARY SEWER MANHOLE (TYPE 302) 4 8" PVC SDR 35 SEWER PIPE 5 4" PVC SCI-1 40 SANITARY SEWER SERVICE 6 2" HDPE DR 21 FORCEMAIN 7 1 1/4" HDPE DR 21 SERVICE PIPE 8 4" ON 8" PVC, SDR 35 WYE BRANCH 9 2" x 1 1/4" TEE 10 1 1/4" CURB STOP 11 2" VERTICAL CLEANOIJT 12 TRENCH STABILIZATION ROCK (6" DEPTH) 13 4" RIGID POLYSTYRENE INSULATION 14 TELEVISE SANITARY SEWER 15 EXPLORATORY DIGGING SUBTOTAL - SANITARY SEWER DMSION 11 - WATERMAIN CONSTRUCTION 1 CONNECT TO EXISTING WATERMAIN STUB 2 6" DIP WM PIPE CL 52 3 8" DIP WM PIPE CL 52 4 6" GATE VALVE & BOX 5 B" GATE VALVE & BOX 6 6" HYDRANT (8' BURY) 7 1" COPPER WATER SERVICE TYPE K 8 1" CORPORATION STOP 9 1" CURB STOP WITH BOX 10 DIP WATERMAIN FITTINGS SUBTOTAL - WATERMAIN Period Ending: June 12, 2007 CONTRACT QUANTITY UNIT AMOUNT UNIT QUANTITY TO DATE PRICE TO DATE T7 �7 'art T D D� D T T T 'rfI D D �YYDmnm�n�iim 1.0 1.0 $ 8,000.00 $ 8,000.00 1.0 1.0 $ 750.00 $ 750.00 1.0 1.0 $ 1,200.00 $ 1,200.00 340.0 340.0 $ 17.52 $ 5,956.80 256.0 270.0 $ 16.80 $ 4,536.00 440.0 440.0 $ 18.02 $ 7,928.80 445.0 240.0 $ 9.50 $ 2,280.00 8.0 10.0 $ 70.10 $ 701.00 9.0 8.0 $ 24.10 $ 192.80 9.0 8.0 $ 130.00 $ 1,040.00 1.0 1.0 $ 250.00 $ 250.00 100.0 100.0 $ 2.75 $ 275.00 2,232.0 2,352.0 $ 2.70 $ 6,350.40 340.D $ 1.65 $ 5.0 3.0 $ 200.00 $ 600.00 $ 40,060.80 1.0 1.0 $ 895.00 $ 895.00 28.0 28.0 $ 30.00 $ 840.00 772.0 772.0 $ 26.10 $ 20,149.20 2.0 2.0 $ 750.30 $ 1,500.60 3.0 3.0 $ 1,202.60 $ 3,607.80 2.0 2.0 $ 2,400.00 $ 4,800.00 675.0 510.0 $ 14.20 $ 7,242.00 17.0 17.0 $ 68.50 $ 1,164.50 17.0 17.0 $ 124.75 $ 2,120.75 325.0 325.0 $ 2.90 $ 942.50 $ 43,262.35 DMSION 111 - STREETS 1 REMOVE BIT. PAVEMENT (ALL DEPTHS) SY 2,781.0 2,781.00 $ 1.75 $ 4,866.75 2 REMOVE BIT. PAVEMENT (DRIVEWAY - ALL DEPTHS) SY 163.0 97.00 $ 9.00 S 873.00 3 REMOVE CONC. CURB & GUTTER (ALL TYPES) LF 20.0 20.00 $ 10.00 $ 200.0D 4 SAWCUT BITUMINOUS PAVEMENT (ALL DEPTHS) LF 154.0 174.00 $ 3.00 $ 522.00 5 COMMON EXCAVATION (P) CY 1,020.0 1,020.00 $ 3.90 $ 3,978.00 6 ADJUST EXISTING MANHOLE EA 1.0 1.00 $ 225.00 $ 225.00 7 2360 TYPE LV4 WEAR COURSE TONS 250.0 26221 $ 74.36 $ 19,497.94 8 2360 TYPE LV3 NON - WEARING COURSE TONS 330.0 336.77 $ 68.17 $ 22,957.61 9 BITUMINOUS TACK COAT GAL 150.0 150.00 S 2.75 $ 412.50 10 AGGREGATE BASE, CL. 5 TONS 1,770.0 1,443.00 $ 8.00 $ 11,544.00 11 2360 TYPE LV4 WEAR COURSE FOR DRIVES (2 ") SY 163.0 97.00 $ 17.20 $ 1,668.40 12 D412 CONCRETE CURB AND GUI I tR LF 1,500.0 1,469.00 $ 8.80 $ 12,927.20 13 B61B CONCRETE CURB AND GUTTER LF 70.0 72.00 S 9.90 $ 712.80 14 IMPORTED TOPSOIL BORROW (CV) CY 300.0 150.00 $ 9.50 $ 1,425.00 15 SOD, TYPE - SALT RESISTANT SY 2,700.0 2,025.0D $ 325 $ 6,58125 16 SILT FENCE, TYPE - PREASSEMBLED LF 1,000.0 350.00 $ 220 $ 770.00 17 TRAFFIC CONTROL LS 1.0 1.00 $ 1,000.00 S 1,000.00 SUBTOTAL - STREET $ 90,161.45 TOTAL ESTIMATE NO. 4(F) $ 173,484.60 • • • COUNCIL MINUTES June 4, 2007 DRAFT CITY OF LINO LAKES 2 MINUTES 3 SPECIAL CITY COUNCIL MEETING 4 5 6 DATE : June 4, 2007 7 TIME STARTED : 5:35 p.m. 8 TIME ENDED : 5:47 p.m. 9 MEMBERS PRESENT : Councilmember Carlson, O'Donnell, Reinert, 10 Stoltz and Mayor Bergeson 11 MEMBERS ABSENT : None 12 13 Staff members present: City Administrator, Gordon Heitke; Community Development Director, 14 Michael Grochala; City Engineer, Jim Studenski; City Planner, Jeff Smyser, Director of Public 15 Safety, Dave Pecchia; Economic Development Coordinator, Mary Alice Divine, Finance Director, Al 16 Rolelq and City Clerk, Julie Bartell 17 18 COMMUNITY DEVELOPMENT DEPARTMENT REPORT, MICHAEL GROCHALA 19 20 Resolution No. 07 -82 regarding findings for denial of conditional use permit application of 21 Royal Oaks Realty for earth material storage at 6644 20th Avenue - City Planner Smyser 22 explained that the Council voted on May 29, 2007 to deny the conditional use permit application. 23 The Minnesota "deadline law" requires that the Council adopt a written statement explaining the 24 denial and that it be adopted before the expiration of the time period allowed for consideration of the 25 application, in this case June 6. 26 27 Council Member Stoltz moved to approve Resolution No. 07 -82, as presented. Council Member 28 Carlson seconded the motion. Motion carried unanimously. 29 30 ADJOURN 31 32 There being no further business, Council Member O'Donnell moved to adjourn at 5:47 p.m. Council 33 Member Carlson seconded the motion. Motion carried unanimously. 34 35 These minutes were considered and approved at the regular Council Meeting, June 25, 2007. 36 37 38 39 40 Julianne Bartell, City Clerk John Bergeson, Mayor 41 1 • • • AGENDA ITEMS 2A STAFF ORIGINATOR Al Rolek MEETING DATE June 25, 2007 TOPIC Consideration of Resolution No. 07 -96 Awarding the Sale of $4,215,000 General Obligation Tax Increment Bonds, Series 2007A VOTE REQUIRED Simple Majority On May 29, 2007, the City Council approved Resolution No. 07 -80 calling for the issuance of $4,215,000 G.O. Tax Increment Bonds to finance the reconstruction of the 35W /Lake Drive interchange and related improvements. As stated at that meeting, the Series 2007A issue would have a 16 -year term, with final maturity in February, 2024, and would be repaid through the tax increments, as detailed above, and backed by MSA funding and, ultimately, the full faith and credit of the City of Lino Lakes. The debt service schedule is structured to utilize TIF proceeds first, with a tax levy schedule for the remaining debt service. The tax levy will be evaluated annually and offset by MSA funds; the City Council would then cancel the tax levy on an annual basis, as needed. The City has since issued its Official Statement and advertised for bids for this issue. Bids were received earlier today by the City's financial advisors, Springsted, inc. Terri Heaton of Springsted, Inc. is here tonight to present the results of the bidding process. Following Ms Heaton's presentation, it is staffs recommendation that the City Council adopt Resolution No. 07 -96 Awarding the Sale of $4,215,000 General Obligation Tax Increment Bonds, Series 2007A. 1. 2. 3. 4. Adopt Resolution No. 07 -96. Refer to Staff for further review. Deny Resolution No. 07 -96 Option 1 Extract of Minutes of Meeting of the City Council of the City of Lino Lakes, Anoka County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Lino Lakes, Minnesota, was duly held in the City Hall in said City on Monday, June 25, 2007, commencing at 6:30 P.M. The following members were present: and the following were absent: * ** The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's $4,215,000 General Obligation Tax Increment Bonds, Series 2007A. The City Administrator presented a tabulation of the proposals that had been received in the manner specified in the Official Terms of Proposal for the Bonds. The proposals were as set forth in EXHIBIT A attached. After due consideration of the proposals, Member then introduced the following written resolution, the ready of which was dispensed with by unanimous consent, and moved its adoption : 312428v1 SJB L/4340 -100 • • • • RESOLUTION NO. 07 -96 A RESOLUTION AWARDING THE SALE OF $4,215,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2007A; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka County, Minnesota (the "City") as follows: Section 1. Sale of Bonds. 1.01. Award to the Purchaser and Interest Rates. The proposal of (the "Purchaser ") to purchase $4,215,000 General Obligation Tax Increment Bonds, Series 2007A (the "Bonds ") of the City described in the Terms of Proposal thereof is found and determined to be a reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of $ plus accrued interest to date of delivery, for Bonds bearing interest as follows: Year of Interest Year of Interest Maturity Rate Maturity Rate 2009 2017 2010 2018 2011 2019 2012 2020 2013 2021 2014 2022 2015 2023 2016 2024 True interest cost: 1.02. Purchase Contract. The sum of $ being the amount proposed by the Purchaser in excess of $4,170,743 will be credited to the Debt Service Fund hereinafter created or deposited in the Project Fund under Section 4.03 hereof, as determined by the City's financial advisor. The City Finance Director is directed to deposit the good faith check of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers forthwith. The Mayor and City Administrator are directed to execute a contract with the Purchaser on behalf of the City. 1.03. Terms and Principal Amounts of the Bonds. The City will forthwith issue and sell the Bonds pursuant to Minnesota Statutes, Chapter 469 (the "Act "), in the total principal 312428v1 SJB LNI40 -100 • amount of $4,215,000, originally dated July 15, 2007, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R -1, upward, bearing interest as above set forth, and maturing serially on February 1 in the years and amounts as follows: Year Amount Year Amount 2009 $165,000 2017 $400,000 2010 175,000 2018 190,000 2011 215,000 2019 200,000 2012 265,000 2020 215,000 2013 285,000 2021 230,000 2014 345,000 2022 245,000 2015 360,000 2023 265,000 2016 380,000 2024 280,000 1.04. Optional Redemption. The City may elect on February 1, 2018, and on any day thereafter to prepay Bonds due on or after February 1, 2016. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. 1.05. Term Bonds. To be completed if Term Bonds are requested by the Purchaser. Section 2. Registration and Payment. 2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing February 1, 2008, to the registered owners of record as of the close of business on the fifteenth day of the immediately preceding month, whether or not that day is a business day. 312428v1 5JB LN144 -100 • 2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes, and payments so made to a registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds sufficient to reimburse the Registrar 312428v1 SJB LN140 -100 for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to the Registrar, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 2.04. Appointment of Initial Registrar. The City appoints U.S. Bank National Association, St. Paul, Minnesota, as the initial Registrar. The Mayor and the City Administrator are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Director must transmit to the Registrar moneys sufficient for the payment of all principal and interest then due. 2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the City Administrator and executed on behalf of the City by the signatures of the 312428v1 SJB LN140 -100 • • • Mayor and the City Administrator, provided that all signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of any Bond, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Administrator will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Form of Bond. 3.01. The Bonds will be printed or typewritten in substantially the following form: No. R- UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA CITY OF LINO LAKES GENERAL OBLIGATION TAX INCREMENT BOND, SERIES 2007A Rate Maturity Original Issue CUSIP February 1, 20_ July 15, 2007 Registered Owner: Cede & Co. 312428v1 SJB LN140 -100 The City of Lino Lakes, Minnesota, a duly organized and existing municipal corporation in Anoka County, Minnesota (the "City"), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified above or registered assigns, the principal sum of $ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable February 1 and August 1 in each year, commencing February 1, 2008, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by U.S. Bank National Association, St. Paul, Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on February 1, 2018, and on any day thereafter to prepay Bonds due on or after February 1, 2019. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify Depository Trust Company (DTC) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. The City Council has designated the issue of Bonds of which this Bond forms a part as "qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the Code) relating to disallowance of interest expense for financial institutions and within the $10 million limit allowed by the Code for the calendar year of issue. This Bond is one of an issue in the aggregate principal amount of $4,215,000 all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on June 25, 2007 (the Resolution), for the purpose of providing money to aid in financing the public development costs in a Development District in the City, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.1799, Sections 469.124 through 469.134 and Sections 469.090 to 469.1081, and the principal hereof and interest hereon are payable primarily from tax increments resulting from increases in taxable valuation of real property in certain tax increment financing districts within the Development District, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency in tax increments pledged, which taxes may be levied without limitation as to rate or amount. The 312428v1 SJB LN140 -100 • • • • • Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing, upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of indebtedness. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Lino Lakes, Anoka County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Administrator and has caused this Bond to be dated as of the date set forth below. Dated: CITY OF LINO LAKES, MINNESOTA (Facsimile) (Facsimile) City Administrator Mayor 312428v1 SJB LINT] 40-100 CERTLh1CATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. U.S. BANK NATIONAL ASSOCIATION By Authorized Representative The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable laws or regulations: TEN COM — as tenants UNIF GIFT MIN ACT in common TEN ENT -- as tenants by entireties TT TEN — as joint tenants with right of survivorship and not as tenants in common Custodian (Cust) (Minor) under Uniform Gifts or Transfers to Minors Act (State) Additional abbreviations may also be used though not in the above list. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. 312428v1 6713 LN140 -100 • • • Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ( "STAMP "), the Stock Exchange Medallion Program ( "SEMP "), the New York Stock Exchange, Inc. Medallion Signatures Program ( "MSP ") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee 312428v1 SJB LN140 -100 PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Date of Registration Signature of Registered Owner Officer of Registrar Cede & Co. Federal ID #13- 2555119 3.02. Approving Legal Opinion. The City Administrator is directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and to cause the opinion to be printed on or accompany each Bond. Section 4. Payment; Security; Pledges and Covenants. 4.01. Approval of Pledge Agreement. The Mayor and City Administrator are authorized and directed to execute the Tax Increment Pledge Agreement (the "Pledge Agreement ") between the City and Authority related to the Bonds, in substantially the form on file, subject to modifications approved by those officials; provided that execution of the agreement will be conclusive evidence of their approval. 4.02. Debt Service Fund. The Bonds are payable from the General Obligation Tax Increment Bonds, Series 2007A Debt Service Fund (the "Debt Service Fund ") hereby created, and all Available Tax Increment, as defined in the Pledge Agreement, together with proceeds of ad valorem taxes hereinafter levied, are pledged to the Debt Service Fund. If a payment of principal or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the City Finance Director is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for those advances out of the proceeds of Available Tax Increment when received, together with interest thereon at the rate and to the extent provided in the Pledge Agreement. There is appropriated to the Debt Service Fund (i) any amount over the minimum purchase price paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 1.02, and (ii) the accrued interest paid by the Purchaser upon closing and delivery of the Bonds. 4.03. Project Fund. The proceeds of the Bonds, less the appropriations made in Section 4.02, together with any other funds appropriated for the will be deposited in a separate project fund (the "Project Fund "). Amounts in the Project Fund will used to pay costs of the I- 35W/Lake Drive Interchange project, including costs of issuance of the Bonds, in accordance with the terms of the Pledge Agreement. When such improvements are completed and the cost 312428v1 SJB LNI40 -100 • • • thereof paid, the Project Fund is to be closed and any balance therein will be deposited in the Debt Service Fund. 4.04. Pledge of Tax Levy. It is determined that at least 20% of the principal and interest on the Bonds will be payable from Available Tax Increment. For the purpose of paying the principal of and interest on the Bonds, there is levied a direct annual iurepealable ad valorem tax ( "Taxes ") upon all of the taxable property in the City, which will be spread upon the tax rolls and collected with and as part of other general taxes of the City. The taxes will be credited to the Debt Service Fund above provided and will be in the years and amounts as follows (year stated being year of collection): Year Levy (See EXHIBIT B) 4.05. Certification to County Auditor as to Debt Service Fund Amount. It is hereby determined that the estimated collections of Available Tax Increment and the foregoing Taxes will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Bonds. The tax levy herein provided is irrepealable until all of the Bonds are paid, provided that at the time the City makes its annual tax levies the City Finance Director may certify to the Manager of Property Records and Taxation of Anoka County the amount available in the Debt Service Fund to pay principal and interest due during the ensuing year, and the Manager of Property Records and Taxation will thereupon reduce the levy collectible during such year by the amount so certified. 4.06. County Auditor Certificate as to Registration. The City Administrator is directed to file a certified copy of this Resolution with the Manager of Property Records and Taxation of Anoka County and obtain the certificate required by Minnesota Statutes, Section 475.63. Section 5. Authentication of Transcript. 5.01. City Proceedings and Records. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, will be deemed representations of the City as to the facts stated therein. 5.02. Certification as to Official Statement. The Mayor, City Administrator, and the Finance Director are authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of the Bonds and that 312428v1 SJB LN140 -100 to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. Section 6. Tax Covenant. 6.01. Generally. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the Code), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. 6.02. Rebate. The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States, if and to the extent the City does not qualify for an exemption from such requirements under the Code or applicable Treasury Regulations. 6.03. Not Private Activity Bonds. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 6.04. Qualified Tax - Exempt Obligations. In order to qualify the Bonds as "gnalified tax- exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (b) the City designates the Bonds as "qualified tax - exempt obligations" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax - exempt obligations (other than private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 2007 will not exceed $1 0,000,000; and 312428v1 SJB LNI40 -100 - 54 - • • (d) not more than $10,000,000 of obligations issued by the City during calendar year 2007 have been designated for purposes of Section 265(b)(3) of the Code. 6.05. Procedural Requirements. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. Section 7. Book -Entry System; Limited Obligation of City. 7.01. DTC. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns (DTC). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC. 7.02. Participants. With respect to Bonds registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (Participants) or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Bond Registrar) of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City, the Bond Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Bond Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal ofj premium, if any, or interest on the Bonds to the extent of the sum or st'ms so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Administrator of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City Administrator will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. 312428v1 SJB LN140 -100 7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (Representation Letter) which shall govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation letter with respect to the Bond Registrar and Paying Agent, respectively, to be complied with at all times. 7.04. Transfers Outside Book -Entry System. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Bond Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 7.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. Section 8. Continuing Disclosure. 8.01. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 8.02. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and City Administrator and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. 3I2428v1 SJB LN140 -100 • • • • • • Section 9. Defeasance. When all Bonds and all interest thereon, have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The motion for the adoption of the foregoing resolution was duly seconded by Member , and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 312428v1 SJB LN140 -100 Passed and adopted this day of 2007. CITY OF LINO LAKES, MINNESOTA Mayor City Administrator Attest: City Clerk 312428v1 SJB LN140 -100 • • • • • STATE OF MINNESOTA ) COUNTY OF ANOKA ) SS. CITY OF LINO LAKES ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Lino Lakes, Anoka County, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on June 25, 2007 with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of $4,215,000 General Obligation Tax Increment Bonds, Series 2007A of the City. WITNESS My hand officially as such City Clerk and the corporate seal of the City this day of , 2007. (SEAL) 312428v1 SJB LN140 -100 City Clerk Lino Lakes, Minnesota STATE OF MINNESOTA COUNTY OF ANOKA MANAGER OF PROPERTY RECORDS AND TAXATION'S CERTIFICATE AS TO REGISTRATION WHERE NO AD VALOREM TAX LEVY I, the undersigned Manager of Property Records and Taxation of Anoka County, Minnesota, hereby certify that a resolution adopted by the City Council of the City of Lino Lakes, Minnesota, on June 25, 2007, relating to General Obligation Tax Increment Bonds, Series 2007A, in the amount of $4,215,000, dated July 15, 2007, has been filed in my office and said obligations have been registered on the register of obligations in my office. WITNESS My hand and official seal this day of , 2007. Manager of Property Records and Taxation Anoka County, Minnesota (SEAL) By Deputy 312428v1 SJB LN140 -100 • • • • • • AGENDA ITEM 2B STAFF ORIGINATOR Al Rolek MEETING DATE June 25, 2007 TOPIC Consider Resolution 07 -97 Approving the Modification of Tax Increment Financing Plan for Tax Increment Financing District No. 1 -11 VOTE REQUIRED Simple Majority The Lino Lakes City Council approved a contract with Lunda Construction for the reconstruction of the interchange of Interstate 35W and Lake Drive. The cost of this reconstruction is to be partially bome by tax increments generated by Tax Increment Financing (TIF) District No. 1 -11. This project was originally included in the tax increment financing plan budget for this district. The cost of the interchange project came in higher than original estimates. The TIF plan budget is adequate to accommodate the increased cost. However, it is necessary to adjust the line items within the existing budget to more accurately reflect the costs of improvements within the district. Therefore, it is necessary to approve an administrative modification to the TIF plan to approve the amended budget. The Lino Lakes EDA approved this modification earlier this evening. Staff recommends the approval of Resolution 07 -97. 1. Adopt Resolution 07 -97. 2. Refer to Staff for further review. 3. Deny Resolution 07 -97. Option 1 CITY OF J .TNO LAKES RESOLUTION NO. 07 -97 RESOLUTION APPROVING MODIFICATION OF TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1 -11 WHEREAS, by Resolution No. 03 -11 approved November 24, 2003, the Economic Development Authority (the "Authority ") for the City of Lino Lakes (the "City ") approved the Tax Increment Financing Plan (the "Plan ") for Tax Increment Financing District No. 1 -11 (the " l'IE District"), pursuant to and in conformity with Minnesota Statutes, Sections 469.090 through 469.1081 (the "EDA Act ") and Sections 469.174 to 469.179 (the "'1'l1-' Act "); and WHEREAS, by Resolution No. 03 -209 approved November 24, 2003, the City Council of the City, after a duly notice public hearing, approved the Plan for the Tile District; and WHEREAS, by resolutions approved on December 15, 2004 and December 20, 2004, respectively, the City Council and the Authority board of commissioners approved resolutions modifying the Plan to eliminate a parcel from the Tile District; and WHEREAS, the City and Authority have determined a need to modify the budget of tax increment expenditures in the Plan and make other administrative changes to conform the Plan with current expectations; and WHEREAS, under Section 469.175, subd. 4 of the TIF Act, the Authority may modify the Plan for the 1'l e District without the notice and hearings required fora new district, if the changes are not those described in Section 469.175, subdivision 4(b), clauses (1) through (6); and WHEREAS, the proposed modifications to the 11r Plan include revised line items of expenditures and revised types of bonded indebtedness, but do not increase the total estimated cost of the project or the total amount of bonded indebtedness. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota as follows: 1. The administrative modification to the Plan is hereby approved in substantially the form on file in City Hall. 2. Upon approval of the modification to the Plan by the board of commissioners of the Authority, the Community Development Director is authorized to forward a copy of the modified Plan to the Department of Revenue and the State Auditor pursuant to Minnesota Statutes 469.175, subd.4a. 311946v2 SJB LN140 -100 - 62 - • • • • • 3. The City Clerk is authorized and directed to forward a copy of the Plan to Anoka County for information purposes. DAZ'ED: June 25, 2007 Mayor AT1E;ST: City Clerk 311946v2 SJB LN140 -100 - 6 3 - • AGENDA ITEM 2C STAFF ORIGINATOR Al Rolek MEETING DATE June 25, 2007 TOPIC Consider Resolution 07 -98 Authorizing Interfund Loan in Connection with Lake Drive Interchange and Tax Increment Financing District No. 1 -11 VOTE REQUIRED Simple Majority The Lino Lakes City Council approved a contract with Lunda Construction for the reconstruction of the interchange of Interstate 35W and Lake Drive. As discussed previously, the cost of the interchange project came in higher than original estimates. It is proposed to provide an interfund loan of $556,000 from funds of the City of Lino Lakes to the project and to repay the loan from future tax increments. This interfund loan would be subordinate to the repayment of the G.O. Tax Increment Bonds and the Tax Increment Revenue Note Series 2004 and any prior interfund loans • The Lino Lakes EDA acted on this modification earlier this evening. Staff recommends the approval of Resolution 07 -98. • 1. Adopt Resolution 07 -98. 2. Refer to Staff for further review. 3. Deny Resolution 07 -98. Option 1 RESOLUTION NO. 07 -98 CITY OF LINO LAKES AUTHORIZING INTERNAL LOAN IN CONNECTION WITH LAKE DRIVE INTERCHANGE AND TAX INCREMENT FINANCING DISTICT NO. 1-11 BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota (the "City") as follows: Section 1. Background. 1.01. Pursuant to Minnesota Statutes, Sections 469.174 to 469.179 (the "TIF Act ") the Lino Lakes Economic Development Authority ( "Authority ") and the City previously established tax increment financing district no. 1 -11 (the "'FIF District ") within Development District No.1. 1.02. The Authority or City may incur certain costs related to the lIF District, which costs may be financed on a temporary basis from available Authority or City funds. 1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the Authority or City is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. The City currently plans to construct improvements to the I -35W and Lake Drive Interchange within the l'IE District (the "Interchange Improvements "), financed by various sources including proceeds of the City's $4,215,000 General Obligation Tax Increment Bonds, Series 2007A (the "TIE Bonds "). 1.05. The Authority has requested the City to advance certain other City funds to finance a portion of Interchange Improvements, and the Authority intends to reimburse the City for the funds so advanced as an interfund loan in accordance with the terms of the Authority's resolution approved June 25, 2007 (the " Interfund Loan Resolution "). Section 2. Interfund Loan Authorized. 2.01. The City approves the interfund loan described in the Interfund Loan Resolution, and authorizes use of any unencumbered City funds available for such purposes under law as the source of the funds for the loan. 2.02. The City Finance Director is authorized and directed to determine the fund(s) or account(s) from which monies are drawn for the interfund loan, and to credit repayments under the Interfund Loan Resolution to the relevant fund(s) or account(s). 2.03. City staff and officials are authorized and directed to execute any collateral documents and take any other actions necessary to carry out the intent of this resolution. • • • • Section 3. Effective Date. This resolution is effective upon approval. Approved by the Board of Commissioners of the Lino Lakes Economic Development Authority this 25th day of June, 2007. ATTEST: Secretary 312051v1 SJB L1'140 -100 7 - 6 6 - President AGENDA ITEM 2D STAFF ORIGINATOR Al Rolek MEETING DATE June 25, 2007 TOPIC Consider Resolution 07 -99 Authorizing a Utility Rate Study VOTE REQUIRED Simple Majority 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 2004. 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 wom 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 $27,750, plus expenses, which would be financed equally from the water and sewer funds. A copy of the proposal is attached for your review. Staff is recommending Council adopt Resolution 07 -99 authorizing Springsted, Inc. to complete a utility rate study. A- 3 -67- 1. Adopt Resolution 07 -99. 2. Refer to Staff for further review. 3. Deny Resolution 07 -99. Option 1 • • • • Council Member introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 07 -99 RESOLUTION AUTHORIZING A UTILITY RATE STUDY WHEREAS, the last utility rate study was done in 2001, and; WHEREAS, utility rates have remained the same since 2004, and; WHEREAS, the Minnesota Department of Natural Resources (MN /DNR) has been actively promoting the conservation of water resources, including providing incentives through the utility rate structure, and; WHEREAS, City's Comprehensive Water and Sewer Plans indicate the need for additional facilities and infrastructure improvements in the next several years, and for financing such improvements, and; WHEREAS, the City Council has determined a need to perform a utility rate study to develop a rate structure and revenue necessary to address these needs, and; WHEREAS, the City has received a quote from Springsted, Inc. to perform a comprehensive utility rate study for the water and sewer utilities. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota, that a Utility Rate Study is hereby authorized to be preformed by Springsted, Inc. at a cost of $27,750, plus expenses. Such cost shall be split equally between the Water and Sewer Funds. • Julianne Bartell, City Clerk John Bergeson, Mayor Adopted by the Lino Lakes City Council this 25th day of June, 2007. The motion for the adoption of the foregoing resolution was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Whereupon said resolution was declared duly passed and adopted. • • • • • Work Plan 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. Water and Wastewater Fee Study Springsted May 2007 Task I 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 H - Conduct Study D 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) D 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 D 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 govemment 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 111 - 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 11 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. Title Principal & Senior Officer Officer & Project Manager Senior Associate Associate Support Staff Rate $210 $180 $150 $135 $ 60 AGENDA ITEM 4A STAFF ORIGINATOR: David J. Pecchia, Public Safety Director /Chief of Police MEETING DATE: June 25, 2007 TOPIC: Annual renewal of Otter Lake Animal Control Contract VOTE REQUIRED: 3/5 BACKGROUND We have had Otter Lake Animal Control Center as our contract holder for the past 11 years. Our relationship during this time with the business has been very professional and we were able to meet the needs of the citizens, Otter Lake Animal Control Center and the City by utilizing the provisions of this contract. There are two changes from last year's contract. One is an increase in Bordatella vaccination charge to $7.00 and an increase in boarding fees to $15.00 per day. IIWe request that the contract be renewed for calendar year 2007. OPTIONS 1. Approve the request to enter into a renewal contract with the Otter Lake Animal Control Center. 2. Return to staff for further information. RECOMMENDATION Option 1. • • • • AGENDA ITEM 4B STAFF ORIGINATOR: David J. Pecchia Director of Public Safety / Police Chief MEETING DATE: June 25, 2007 TOPIC: Acknowledgement of Support for the 2007 Senior Safety Fair VOTE REQUIRED: 3/5 BACKGROUND On May 16th, 2007 The Lino Lakes Police Department partnered with the Centennial Fire District, the Lino Lakes Senior Center and the Chain of Lakes YMCA to present the first annual Senior Safety Fair. The event was developed to present safety and wellness information to the seniors in the Lino Lakes area. This year's fair was considered a huge success with the attendance of over 80 seniors from throughout the area. The following businesses were very supportive of this event and donated items to be handed out, prizes for drawings or their services. We would like to recognize these organizations and businesses for their support: Applebee's Axel's Bonfire Restaurant Checker Auto Parts Cub Foods Cuppajo's Expresso Cafe Dairy Queen Grill & Chill The Creamery Crossing in lsanti Festival Foods Goetz Garden Center Green Mill Holiday Gas Station Lemon Water Salon Lino Lakes Lions Matthew's Restaurant Pizza Hut Precision Tune Red Oak Restaurant Liz Sheehy Shell Corner Express Wal -Mart Zantigo OPTIONS 1. Acknowledge the support of the above listed businesses and organizations for their support 2. No action RECOMMENDATION Option 1 • • • AGENDA ITEM 6A STAFF ORIGINATOR: James E. Studenski, City Engineer COUNCIL MEETING DATE: June 25, 2007 TOPIC: Resolution No. 07 — 95, Rejecting All Bids and Authorizing Request for Quotes, 2007 Surface Water Management Projects VOTE REQUIRED: Simple Majority BACKGROUND: Sealed bids were received and publicly opened at 10:00 a.m. on June 13, 2007. The results of the bid opening are presented below. Contractor Amount of Bid Westco Environmental Services $ 14,902.70 Lametti and Sons, Inc. $ 132,745.20 Penn Cont Inc. $ 237,666.00 Engineer's Estimate $ 94,690.00 The low bidder Westco Environmental Services has been contacted regarding their bid submittal. They have provided a written withdrawal of the above bid due to their mis- calculation of project costs resulting in a bid that can not be fulfilled. in discussion of the project scope of work with the bidders, it has been determined that a more efficient method to complete the work would be to separate the activities into two projects. The two project categories would be pipe cleaning and pipe outlet excavation including restoration. The size of the project will also be reduced due to budget constraints. A copy of the complete bid tabulation is attached. RECOMMENDATION: Staff recommends that Resolution Number 07 — 95, Rejecting All Bids and Authorizing Request for Quotes for the 2007 Surface Water Management Projects be adopted. Council Member introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 07 -95 RESOLUTION REJECTING ALL BIDS AND AUTHORIZING REQUEST FOR QUOTES - 2007 SURFACE WATER MANAGEMENT PROJECTS WHEREAS, pursuant to an advertisement for bids for the construction of 2007 Surface Water Management Projects, bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: Contractor Amount of Bid Westco Environmental Services $ 14,902.70 Lametti and Sons, Inc. $ 132,745.20 Penn Cont Inc. $ 237,666.00 Engineer's Estimate $ 94,690.00 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: 1. Rejects all bids and authorizes the City Engineer to execute the rejections on behalf of the City. 2. The City Engineer will send out a request for quotes. The bids will be received by the Clerk until 10:00 a.m. on Wednesday, July 11, 2007, at which time they will be publicly opened in the °City Hall by the City Clerk and Engineer, will then be tabulated, and will be considered by the Co-tinelf at 6:30 p.m. onMonday, July 23, 2007, in the Council Chambers of the City Hall. Any bidder whose responsibility is questioned during consideration of the bid will be given an opportunity to address the Council on the issue of responsibility. No bids will be considered unless sealed and filed with the Clerk and accompanied by a cash deposit, cashier's check, bid bond or certified check payable to the Clerk for five (5) percent of the amount of such bid. John Bergeson, Mayor Julianne Bartell, City Clerk Adopted by the Lino Lakes City Council this 25th day of June, 2007. The motion for the adoption of the foregoing resolution was duly seconded by Council Member and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: Whereupon said resolution was declared duly passed and adopted. - 8 0 - • • • ENGINEERS • ARCHITECTS • PLANNERS BIDS OPENED: JUNE 13, 2007, AT 10:30 AM *DENOTES ERROR IN BIDDERS CALCULATION ENGINEER'S ESTIMATE WESTCO ENVIRONMENTAL LAMETTI & SONS, INC. PENN CONTRACTING TEM UNIT TOTAL UNIT TOTAL UNIT TOTAL UNIT TOTAL NO. DESCRIPTION QUANTITY UNIT PRICE AMOUNT PRICE AMOUNT PRICE AMOUNT PRICE __- AMOUNT 0 0 o 00 o r- W 0 m m m m 6 H $ 136,500.00 $ $ 20,000.00 0 10 10 CD h Pi N {q 0 0 o 0 0 0 !A 0 0 W $ 3,500.00 $ 3,000.00 0 0 o 0 0 0 N H $ 5,000.00 $ 57,454.20 $ 62,400.00 $ 1,900.00 0 0 0 0 0 1S $ 132,754.20 0 0 0 0 0 6 us 0 0) 10 NO $ 1,600.00 $ 1,900.00 0 0 0 0 0 m w 0 o 0 1.0 0 63. 0 Is m CO W $ 3,354.00 . fR 0 ti 0 Co 9 di $ 350.00 10 r M 0 0 m CD !9 fA 1 d} 0 0 C 0 0 v ui $ 48,890.00 $ 38,000.00 $ 1,500.00 0 0 O 0 1n .- us 0 0 o CO CO c m vs $ 4,000.00 0 0 IC = $ 1,000.00 1 $ 1,500.00 0 0 o 0 0 ea CO J Q Q J IX J 0 O m 0i 39.0 1.0 o MOBILIZATION CLEAN STORM SEWER PIPE (INCLUDES CATCH BASIN/MAHOLE) CLEAN /OPEN STORM SEWER OUTFALL FES OR APRON TRAFFIC CONTROL - - SEEDING AND RESTORATION TOTAL BID AMOUNT N F C 1!f OFFICIAL STATEMENT DATED JUNE 12, 2007 AS AMENDED JUNE 12, 2007 Rating: Requested from Moody's NEW ISSUE Investors Service In the opinion of Kennedy & Graven, Chartered, Bond Counsel, under existing laws, regulations, rulings and decisions, assuming compliance with the covenants set forth in the Resolution, the interest on the Bonds is not includable in the gross income of the owners thereof for federal income tax purposes or in taxable net income of individuals, estates or trusts for Minnesota income tax purposes, and is not a preference item for purposes of the computation of the federal alternative minimum tax or the computation of Minnesota altemative minimum tax imposed on individuals, trusts and estates. Interest on the Bonds is includable in the calculation of certain federal and Minnesota taxes imposed on corporations. (For a description of related issues, see `Tax Exemption" herein.) $4,215,000 City of Lino Lakes, Minnesota General Obligation Tax Increment Bonds, Series 2007A (Book Entry Only) Dated date: July 15, 2007 Interest Due: Each February 1 and August 1, commencing February 1, 2008 The Bonds will mature February 1 as follows: 2009 $165,000 2010 $175,000 2011 $215,000 2012 $265,000 2013 $285,000 2014 $345,000 2015 $360,000 2016 $380,000 2017 $400,000 2018 $190,000 2019 $200,000 2020 $215,000 2021 $230,000 2022 $245,000 2023 $265,000 2024 $280,000 Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of redemption and must conform to the maturity schedule set forth above. The City may elect on February 1, 2018, and on any date thereafter, to prepay the Bonds due on or after February 1, 2019 at a price of par plus accrued interest. The Bonds will be general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge tax increment revenues from the City's Tax Increment Financing District No. 1 -11 and a portion of their revenues from Tax Increment Financing District No. 1 -10. The proceeds will be used to finance various improvement projects related to the 35W and Lake Drive Improvement Project within the City. Proposals must be for not less than $4,170,743 plus accrued interest on the total principal amount of the Bonds. Proposals must be accompanied by a good faith deposit in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $42,150, payable to the order of the City. Proposals shall specify rates in integral multiples of 5/100 or 1/8 of 1 %. Rates must be in level or ascending order. The Bonds will be awarded on the basis of True Interest Cost (TIC). The City will designate the Bonds as "qualified tax - exempt obligations" pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. The Bonds will not be subject to the alternative minimum tax for individuals. The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company ( "DTC "). DTC will act as securities depository for the Bonds. Individual purchases may be made in book entry form only, in the principal amount of $5,000 and integral multiples thereof. Investors will not receive physical certificates representing their interest in the Bonds purchased. (See "Book Entry System" herein.) U.S. Bank National Association, St. Paul, Minnesota will serve as registrar (the "Registrar") for the Bonds. The Bonds will be available for delivery at DTC on or about July 23, 2007. PROPOSALS RECEIVED: June 25, 2007 (Monday) until 11:00 A.M., Central Time AWARD: June 25, 2007 (Monday) at 6:30 P.M., Central Time Springsted Further information may be obtained from SPRINGSTED Incorporated, Financial Advisor to the City, 380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101 -2887 (651) 223 -3000 For purposes of compliance with Rule 15c2 -12 of the Securities and Exchange Commission, this document, as the same may be supplemented or corrected by the Issuer from time to time (collectively, the "Official Statement "), may be treated as an Official Statement with respect to the Obligations described herein that is deemed final as of the date hereof (or of any such supplement or correction) by the Issuer, except for the omission of certain information referred to in the succeeding paragraph. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Obligations, together with any other information required by law, shall constitute a "Final Official Statement" of the Issuer with respect to the Obligations, as that term is defined in Rule 15c2 -12. Any such addendum shall, on and after the date thereof, be fully incorporated herein and made a part hereof by reference. By awarding the Obligations to any underwriter or underwriting syndicate submitting a Proposal therefor, the Issuer agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Obligations are awarded copies of the Official Statement and the addendum or addenda described in the preceding paragraph in the amount specified in the Terms of Proposal. The Issuer designates the senior managing underwriter of the syndicate to which the Obligations are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a Proposal with respect to the Obligations agrees thereby that if its bid is accepted by the Issuer (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Obligations for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. No dealer, broker, salesman or other person has been authorized by the Issuer to give any information or to make any representations with respect to the Obligations, other than as contained in the Official Statement or the Final Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by the Issuer. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from sources other than records of the Issuer and, while believed to be reliable, is not guaranteed as to completeness or accuracy. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE ISSUER SINCE THE DATE THEREOF. References herein to laws, rules, regulations, resolutions, agreements, reports and other documents do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the particular document, the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts of documents prepared by or on behalf of the Issuer have not been included as appendices to the Official Statement or the Final Official Statement, they will be furnished on request. Any CUSIP numbers for the Obligations included in the Final Official Statement are provided for convenience of the owners and prospective investors. The CUSIP numbers for the Obligations have been assigned by an organization unaffiliated with the Issuer. The Issuer is not responsible for the selection of the CUSIP numbers and makes no representation as to the accuracy thereof as printed on the Obligations or as set forth in the Final Official Statement. No assurance can be given that the CUSIP numbers for the Obligations will remain the same after the date of issuance and delivery of the Obligations. TABLE OF CONTENTS Page(s) Terms of Proposal i -iv Introductory Statement 1 Continuing Disclosure 1 The Bonds 2 Authority and Purpose 4 Security and Financing 4 Future Financing 4 Litigation 5 Legality 5 Tax Exemption 5 Qualified Tax - Exempt Obligations 6 Rating 6 Financial Advisor 7 Certification 7 City Property Values 8 City Indebtedness 9 City Tax Rates, Levies and Collections 13 Funds on Hand 13 City Investments 14 General Information Concerning the City 15 Governmental Organization and Services 18 Proposed Form of Legal Opinion Appendix I Continuing Disclosure Certificate Appendix II Summary of Tax Levies, Payment Provisions, and Minnesota Real Property Valuation Appendix III Excerpt of 2006 Annual Financial Statements Appendix IV Proposal Forms Inserted THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $4,215,000 CITY OF LINO LAKES, MINNESOTA GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2007A (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Monday, June 25, 2007, until 11:00 A.M., Central Time, at the offices of Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 6:30 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner in which the Proposal is submitted. (a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax (651) 223 -3046 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (651) 223 -3000 or fax (651) 223 -3046 for inclusion in the submitted Proposal. OR (b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via PARITY". For purposes of the electronic bidding process, the time as maintained by PARITY® shall constitute the official time with respect to all Bids submitted to PARITY®. Each bidder shall be solely responsible for making necessary arrangements to access PARITY° for purposes of submitting its electronic Bid in a timely manner and in compliance with the requirements of the Terms of Proposal. Neither the City, its agents nor PARITY' shall have any duty or obligation to undertake registration to bid for any prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and neither the City, its agents nor PARITY® shall be responsible for a bidder's failure to register to bid or for any failure in the proper operation of, or have any liability for any delays or interruptions of or any damages caused by the services of PARITY'. The City is using the services of PARITY® solely as a communication mechanism to conduct the electronic bidding for the Bonds, and PARITY® is not an agent of the City. If any provisions of this Terms of Proposal conflict with information provided by PARITY®, this Terms of Proposal shall control. Further information about PARITY®, including any fee charged, may be obtained from: PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018 Customer Support: (212) 849 -5000 DETAILS OF THE BONDS The Bonds will be dated July 15, 2007, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 2008. Interest will be computed on the basis of a 360 -day year of twelve 30 -day months. The Bonds will mature February 1 in the years and amounts as follows: 2009 $165,000 2010 $175,000 2011 $215,000 2012 $265,000 2013 $285,000 2014 $345,000 2015 $360,000 2016 $380,000 2017 $400,000 2018 $190,000 2019 $200,000 2020 $215,000 2021 $230,000 2022 $245,000 2023 $265,000 2024 $280,000 Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of redemption and must conform to the maturity schedule set forth above. In order to designate term bonds, the proposal must specify "Years of Term Maturities" in the spaces provided on the Proposal Form. BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ( "DTC "), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar, which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on February 1, 2018, and on any day thereafter, to prepay Bonds due on or after February 1, 2019. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge tax increment revenues from the City's Tax Increment Financing District Nos. 1 -10 and 1 -11. The proceeds will be used to finance various improvement projects related to the 35W and Lake Drive Improvement Project within the City. TYPE OF PROPOSALS Proposals shall be for not Tess than $4,170,743 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ( "Deposit ") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $42,150, payable to the order of the City. If a check is used, it must accompany the proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The Deposit received from the purchaser, the amount of which will be deducted at settlement, will be deposited by the City and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1 %. Rates must be in level or ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non - substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and (iii) reject any proposal that the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser through DTC in New York, New York. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of customary dosing papers, including a no- litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds that shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of payment for the Bonds has been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any Toss suffered by the City by reason of the purchaser's non - compliance with said terms for payment. CONTINUING DISCLOSURE In accordance with SEC Rule 15c2- 12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Bonds, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the Bonds will be conditioned upon receiving evidence of this undertaking at or prior to delivery of the Bonds. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly final Official Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223 -3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2 -12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 170 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated May 29, 2007 BY ORDER OF THE CITY COUNCIL /s/ Julianne Bartell City Clerk OFFICIAL STATEMENT $4,215,000 CITY OF LINO LAKES, MINNESOTA GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2007A (BOOK ENTRY ONLY) INTRODUCTORY STATEMENT This Official Statement contains certain information relating to the City of Lino Lakes, Minnesota (the "City" or the "Issuer ") and its issuance of $4,215,000 General Obligation Tax Increment Bonds, Series 2007A (the "Bonds," the "Obligations" or the "Issue "). The Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes. Additional sources of security for the Bonds are discussed herein. Inquiries may be directed to Mr. Alan Rolek, Finance Director, City of Lino Lakes, 600 Town Parkway, Lino Lakes, Minnesota 55014, by telephoning (952) 982 -2400. Inquiries may also be made to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota 55101 -2887, or by telephoning (651) 223 -3000. If information of a specific legal nature is desired, requests may be directed to Kennedy & Graven, Chartered, Bond Counsel, 470 U.S. Bank Plaza, Minneapolis, Minnesota 55402, or by telephoning (612) 337 -9300. CONTINUING DISCLOSURE In order to assist the Underwriters in complying with SEC Rule 15c2 -12 promulgated by the Securities and Exchange Commission, pursuant to the Securities Exchange Act of 1934, as the same may be amended from time to time, and official interpretations thereof (the "Rule "), pursuant to the Award Resolution, the City has entered into an undertaking (the "Undertaking ") for the benefit of holders including beneficial owners of the Bonds to provide certain financial information and operating data relating to the City to certain information repositories annually, and to provide notices of the occurrence of certain events enumerated in the Rule to certain information repositories or the Municipal Securities Rulemaking Board and to any state information depository. The specific nature of the Undertaking, as well as the information to be contained in the annual report or the notices of material events are set forth in the Continuing Disclosure Certificate to be executed and delivered by the City at the time the Bonds are delivered in substantially the form attached hereto as Appendix II. The City has never failed to comply in all material respects with any previous undertakings under the Rule to provide annual reports or notices of material events. A failure by the City to comply with the Undertaking will not constitute an event of default on the Bonds (although holders will have any available remedy at law or in equity). Nevertheless, such a failure must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price. 1 THE BONDS General Description The Bonds are dated as of July 15, 2007 and will mature in the amounts and on the dates shown on the cover of this Official Statement. The Bonds are being issued in book entry form. Interest on the Bonds is payable February 1, 2008 and semiannually thereafter on August 1 and February 1. Interest on the Bonds will be payable to the holder (initially Cede & Co.) registered on the books of the Registrar as of the fifteenth day of the calendar month next preceding such interest payment date. Principal of and interest on the Bonds will be paid as described in the section herein entitled "Book Entry System." U.S. Bank National Association, St. Paul, Minnesota will serve as Registrar for the Bonds. The City will pay for registration services. Optional Redemption The City may elect on February 1, 2018, and on any day thereafter, to prepay Bonds due on or after February 1, 2019. Redemption may be in whole or in part and if in part at the option of the City and in such order as the City shall determine. If Tess than all the Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest to the date of redemption. Book Entry System The Depository Trust Company ( "DTC "), New York, New York, will act as securities depository for the Obligations. The Obligations will be issued as fully- registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully- registered certificate will be issued for each maturity of the Obligations, in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC is a limited - purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for securities that its participants ( "Direct Participants ") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The Depository Trust and Clearing Corporation ( "DTCC "). DTCC, in turn, is owned by a number of Direct Participants of DTC and members of the National Securities Clearing Corporation, Fixed Income Clearing Corporation, and Emerging Markets Clearing Corporation (NSCC, FICC, and EMCC, also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC, and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as securities brokers and dealers, banks, trust companies and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ( "Indirect Participants "). The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.orq. -2- Purchases of Obligations under the DTC system must be made by or through Direct Participants, which will receive a credit for the Obligations on DTC's records. The ownership interest of each actual purchaser of each Obligation ( "Beneficial Owner ") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Obligations are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Obligations, except in the event that use of the book -entry system for the Obligations is discontinued. To facilitate subsequent transfers, all Obligations deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as requested by an authorized representative of DTC. The deposit of Obligations with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Obligations; DTC's records reflect only the identity of the Direct Participants to whose accounts such Obligations are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Redemption notices shall be sent to DTC. If less than all of the Obligations within a maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to the Obligations unless authorized by a Direct Participant in accordance with DTC's procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Issuer or Bond Registrar as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Obligations are credited on the record date (identified in a listing attached to the Omnibus Proxy). Payment of principal, interest, and redemption premium, if any, on the Obligations will be made to Cede & Co. or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts, upon DTC's receipt of funds and corresponding detail information from the Issuer or its agent on the payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC (nor its nominee), the Bond Registrar, or the Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, interest, and redemption premium, if any, to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Bond Registrar, Issuer, or the Issuer's agent. Disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 3 DTC may discontinue providing its services as securities depository with respect to the Obligations at any time by giving reasonable notice to the Issuer or its agent. Under such circumstances, in the event that a successor securities depository is not obtained, certificates are required to be printed and delivered. The Issuer may decide to discontinue use of the system of book - entry-only transfers through DTC (or a successor securities depository). In that event, certificates will be printed and delivered to DTC. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof. AUTHORITY AND PURPOSE The Bonds are being issued pursuant to Minnesota Statutes, Chapters 469 and 475. Proceeds of the Bonds will be used to finance various improvement projects related to the 35W and Lake Drive Interchange and related street improvements within the City. The composition of the Bonds is as follows: Project Costs $4,135,018 Costs of Issuance 35,725 Allowance for Discount Bidding 44,257 Total Bond Issue $4,215,000 SECURITY AND FINANCING The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge tax increment revenues from the City's Tax Increment Financing District No. 1 -11 and a portion of their revenues from Tax Increment Financing District 1 -10. The City will make its first levy for the Bonds in 2007 for collection in 2008. The City will use available City funds and tax increment revenues to pay the February 1, 2008 interest payment. Thereafter, each year's collections of tax increment revenues and tax collections, if collected in full, will be sufficient to pay 105% of the interest coming due on August 1 in the year of collection and the principal and interest coming due on February 1 of the following year. FUTURE FINANCING The City does not anticipate any additional borrowing within the next 90 days. 4 LITIGATION The City is not aware of any threatened or pending litigation affecting the validity of the Bonds or the City's ability to meet its financial obligations. LEGALITY The Bonds are subject to approval as to certain matters by Kennedy & Graven, Chartered, of Minneapolis, Minnesota as Bond Counsel. Kennedy & Graven also serves as City Attorney. Bond Counsel has not participated in the preparation of this Official Statement and will not pass upon its accuracy, completeness, or sufficiency. Bond Counsel has not examined nor attempted to examine or verify, any of the financial or statistical statements, or data contained in this Official Statement and will express no opinion with respect thereto. A legal opinion in substantially the form set out as Appendix I to this Official Statement will be delivered at closing. TAX EXEMPTION In the opinion of Bond Counsel, under existing statutes, regulations, rulings and decisions, interest on the Bonds is not includable in the "gross income" of the owners thereof for purposes of federal income taxation and is not includable in net taxable income of individuals, estates or trusts for purposes of State of Minnesota income taxation, but is subject to State of Minnesota franchise taxes measured by income that are imposed upon corporations and financial institutions. Noncompliance following the issuance of the Bonds with certain requirements of the Internal Revenue Code of 1986, as amended, (the "Code ") and covenants of the bond resolution may result in the inclusion of interest on the Bonds in gross income (for federal tax purposes) and net taxable income for State of Minnesota tax purposes of the owners thereof. No provision has been made for redemption of the Bonds, or for an increase in the interest rate on the Bonds, in the event that interest on the Bonds becomes subject to United States or State of Minnesota income taxation. The Code imposes an alternative minimum tax with respect to individuals and corporations on alternative minimum taxable income. Interest on the Bonds will not be treated as a preference item in calculating alternative minimum taxable income. The Code provides, however, that a portion of the adjusted current earnings of a corporation not otherwise included in the minimum tax base would be included for purposes of calculating the alternative minimum tax that may be imposed with respect to corporations. Adjusted current earnings include income received that is otherwise exempt from taxation such as interest on the Bonds, The Code provides that in the case of an insurance company subject to the tax imposed by Section 831 of the Code, the amount which otherwise would be taken into account as "losses incurred" under Section 832(b)(5) shall be reduced by an amount equal to 15% of the interest on the Bonds that is received or accrued during the taxable year. Interest on the Bonds may be included in the income of a foreign corporation for purposes of the branch profits tax imposed by Section 884 of the Code. Under certain circumstances, interest on the Bonds may be subject to the tax on "excess net passive income" of Subchapter S corporations imposed by Section 1375 of the Code. 5 Minnesota Tax Exemption The 1995 Minnesota Legislature enacted a law that includes interest on obligations of Minnesota governmental units and Indian tribes in net income of individuals, estates and trusts for Minnesota income tax purposes if a court determines that Minnesota's exemption of such interest unlawfully discriminates against interstate commerce because interest on obligations of governmental issuers located in other states is not excluded. This law applies to taxable years that begin during or after the calendar year in which any such court decision becomes final, irrespective of the date on which the obligations were issued. The Court of the Appeals of Kentucky recently held unconstitutional Kentucky's taxation system that exempts from "net income" the interest on bonds issued by Kentucky or its subdivisions while including in "net income" the interest on bonds issued by other states or their subdivisions. In 1994, the Ohio Court of Appeals reached the opposite conclusion on this legal issue, determining that the Ohio exemption does not violate the Commerce Clause of the United States Constitution. On May 21, 2007, the United States Supreme Court agreed to consider the appeal of the Kentucky case during its 2007 Term. If the United States Supreme Court were to uphold the decision of the Court of Appeals of Kentucky, the Minnesota law that requires the inclusion of interest on bonds issued by Minnesota governmental units and Indian tribes in State of Minnesota income tax may become effective. The above is not a comprehensive list of all federal tax consequences which may arise from the receipt of interest on the Bonds. The receipt of interest on the Bonds may otherwise affect the federal or State income tax liability of the recipient based on the particular taxes to which the recipient is subject and the particular tax status of other items or deductions. Bond Counsel expresses no opinion regarding any such consequences. All prospective purchasers of the Bonds are advised to consult their own tax advisors as to the tax consequences of, or tax considerations for, purchasing or holding the Bonds. QUALIFIED TAX- EXEMPT OBLIGATIONS The City will designate the Bonds as "qualified tax - exempt obligations" for purposes of Section 265(b)(3) of the Code relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax - exempt obligations. RATING An application for a rating of the Bonds has been made to Moody's Investors Service ( "Moody's "), 99 Church Street, New York, New York. If a rating is assigned, it will reflect only the opinion of Moody's. Any explanation of the significance of the rating may be obtained only from Moody's. There is no assurance that a rating, if assigned, will continue for any given period of time, or that such rating will not be revised or withdrawn if, in the judgment of Moody's, circumstances so warrant. A revision or withdrawal of the rating may have an adverse effect on the market price of the Bonds. 6 FINANCIAL ADVISOR The City has retained Springsted Incorporated, Public Sector Advisors, of St. Paul, Minnesota, as financial advisor (the "Financial Advisor ") in connection with the issuance of the Bonds. In preparing the Official Statement, the Financial Advisor has relied upon governmental officials, and other sources, who have access to relevant data to provide accurate information for the Official Statement, and the Financial Advisor has not been engaged, nor has it undertaken, to independently verify the accuracy of such information. The Financial Advisor is not a public accounting firm and has not been engaged by the City to compile, review, examine or audit any information in the Official Statement in accordance with accounting standards. The Financial Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public securities and therefore will not participate in the underwriting of the Bonds. CERTIFICATION The City has authorized the distribution of this Official Statement for use in connection with the initial sale of the Bonds. As of the date of the settlement of the Bonds, the Purchaser will be furnished with a certificate signed by the appropriate officers of the City. The certificate will state that as of the date of the Official Statement, the Official Statement did not and does not as of the date of the certificate contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements made therein, in Tight of the circumstances under which they were made, not misleading. (The Balance of This Page Has Been Intentionally Left Blank) 7 CITY PROPERTY VALUES 2006 Indicated Market Value of Taxable Property: $2,205,729,405* Indicated market value is calculated by dividing the City's 2005 taxable market value of $1,927,807,500 by the 2005 sales ratio of 87.4% for the City as determined by the State Department of Revenue. (2006 sales ratio not yet available.) Excludes mobile home valuation of $2,189,500. 2006 Taxable Net Tax Capacity: $21,550,395* 2006 Net Tax Capacity Less: Captured Tax Increment Tax Capacity Contribution to Fiscal Disparities Plus: Distribution from Fiscal Disparities 2006 Taxable Net Tax Capacity Excludes mobile home valuation of $21,895. 2006 Taxable Net Tax Capacity by Class of Property(a) (a) (b) Real Estate: Residential Homestead Commercial /Industrial and Public Utility(b) Residential Non - Homestead Agricultural and Residential Seasonal /Recreational Personal Property Total $16,327,290 3,657,025 929,731 348,059 288,290 $21,550,395 $20,941,335 (422,284) (1,172,918) 2,204,262 $21,550,395 Reflects adjustments for fiscal disparities and captured tax increment tax capacity. Excludes mobile home valuation of $21,895. Trend of Values (a) (b) 2006 2005 2004 2003 2002 Indicated Market Value(a) $2,205,729,405 1,984,345,309 1,878,743,819 1,635,386,691 1,409,349,451 75.8% 17.0 4.3 1.6 1.3 100.0% Taxable Taxable Net Market Value Tax Capacity(b) $1,927,807,500 1,734,317,800 1,534,933,700 1,339,381,700 1,154,257,200 $21,550,395 19,233,726 17,213,837 15,276,466 12,688,859 Indicated market values are calculated by dividing the City's taxable market value by the aggregate sales ratio computed for the City each year by the State Department of Revenue. See Appendix III for an explanation of taxable net tax capacity and the Minnesota property tax system. 8 Ten of the Largest Taxpayers Taxpayer Target Corporation Lino Lakes Realty LLC Xcel Energy Kohl's Department Store Molin Concrete Products Taylor Corporation Gargaro Properties LLC Lino Lakes Business Center F &G Incorporated Legacy Holdings LLC Total Type of Property Retail Commercial /Industrial Utility Retail Commercial /Industrial Commercial /Industrial Commercial /Industrial Commercial /Industrial Commercial /Industrial Commercial Represents 6.5% of the City's 2006 taxable net tax capacity. CITY INDEBTEDNESS Legal Debt Limit Legal Debt Limit (2% of Taxable Market Value) Less: Outstanding Debt Subject to Limit (Including Installment Contract issue) Legal Debt Margin as of April 30, 2007 General Obligation Debt Supported by Taxes* Date Original of Issue Amount 2 -1 -04 $ 274,000 2 -1 -05 107,000 2 -1 -06 307,000 11 -1 -06 2,990,000 2 -1 -07 160,000 Total Purpose Equipment Certificates Equipment Certificates Equipment Certificates CIP Refunding Equipment Certificates These issues are subject to the statutory debt limit. 9 2006 Net Tax Capacity $ 265,254 256,862 148,787 131,706 124,375 117,902 91,274 89,862 88,256 87,018 $1,401,296* $38,556,150 (4,262,000) $34,294,150 Final Maturity 12 -31 -2007 12 -31 -2008 12 -31 -2009 2 -1 -2018 12 -31 -2010 Principal Outstanding As of 4 -30 -07 $ 98,000 72,000 307,000 2,990,000 160,000 $3,627,000 General Obligation Debt Supported Primarily by Special Assessments Date Original of Issue Amount 7 -1 -02 $ 645,000 7 -1 -02 2,110,000 12 -1 -03 250,000 12 -1 -03 2,090,000 11 -15 -04 620,000 11 -1 -05 5,550,000 11 -1 -05 3,755,000 Total Purpose Improvements Taxable Improvements Taxable Improvements Improvement and Refunding Bonds Improvements Taxable Improvements Improvement Refunding Principal Final Outstanding Maturity As of 4 -30 -07 2 -1 -2013 $ 245,000 2 -1 -2013 1,390,000 2 -1 -2014 190,000 2 -1 -2019 770,000 2 -1 -2020 555,000 2 -1 -2021 5,355,000 2 -1 -2015 3,370,000 General Obligation Debt Supported by Tax Increments and Tax Abatements Date Original of Issue Amount 8 -15 -06 7 -15 -07 $2,460,000 4,215,000 Purpose Tax Abatement Tax Increment (this Issue) Total General Obligation Debt Supported by Revenues Date Original of Issue Amount 9 -1 -99 11 -15 -04 8 -15 -06 11 -01 -06 Total $ 680,000 710,000 570,000 1,740,000 Purpose Water Revenue Refunding Water Revenue Water and Sewer Revenue Water Revenue Refunding Installment Contract and Lease Obligations Date of Issue 8 -1 -98 9 -1 -99 Total Original Amount $5,350,000 980,000 Purpose Municipal Complex Lease Public Project Revenue Refunding Final Maturity $11,875,000 Principal Outstanding As of 4 -30 -07 2 -1 -2023 $2,460,000 2 -1 -2024 4,215,000 Final Maturity 2 -1 -2008 2 -1 -2020 2 -1 -2017 2 -1 -2012 $6,675,000 Principal Outstanding As of 4 -30 -07 $ 115,000 635,000 570,000 1,740,000 $3,060,000 Principal Final Outstanding Maturity As of 4 -30 -07 2 -1 -2010 $635,000(a) 2 -1 -2010 285,000(b) $920,000 (a) This issue is subject to the statutory debt limit. (b) This issue is not subject to annual appropriation and is not subject to the statutory debt limit. - 10 - Annual Calendar Year Debt Service Payments Including This Issue G.O. Debt Supported by Taxes Year Principal 2007 (at 4 -30) $ 223,000 2008 194,000 2009 165,000 2010 135,000 2011 305,000 2012 320,000 2013 355,000 2014 360,000 2015 360,000 2016 380,000 2017 405,000 2018 425,000 2019 2020 2021 Total Yea r 2007 (at 4 -30) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total Principal & Interest $ 191,079.00 144,645.00 129,500.00 200,475.00 415,300.00 417,800.00 439,300.00 430,000.00 415,600.00 420,800.00 430,100.00 433,500.00 $3,627,000(a) $4,068,099.00 G.O. Debt Supported by Tax Increments and Tax Abatements Principal - 0- - 0- $ 165,000 175,000 245,000 350,000 410,000 485,000 515,000 550,000 590,000 395,000 425,000 465,000 500,000 540,000 585,000 280,000 $6,675,000(d) Principal & Interest(c) $ 51,710.00 275,460.90 430,087.50 433,797.50 495,982.50 589,736.25 635,223.75 693,025.00 703,652.50 717,835.00 735,197.50 520,203.75 533,266.25 554,818.75 569,700.00 587,882.50 609,138.75 285,880.00 G.O. Debt Supported Primarily by Special Assessments Principal (Paid) $ 1,115,000 1,060,000 1,085,000 1,125,000 1,160,000 1,195,000 925,000 910,000 515,000 540,000 570,000 600,000 550,000 525,000 $11,875,000(b) Principal & Interest $ 273,891.88 1,640,548.76 1,540,532.51 1,518,968.76 1,510,351.26 1,494,681.26 1,474,165.01 1,152,001.26 1,092,318.76 662,818.76 662,593.76 665,950.01 667,750.01 589,759.38 538,125.00 $15,484,456.38 G.O. Debt Supported by Revenues Principal (Paid) $ 415,000 450,000 465,000 485,000 505,000 105,000 110,000 110,000 115,000 125,000 55,000 60,000 60,000 Principal & Interest $ 72,843.44 521,313.76 540,178.76 538,818.76 541,731.26 543,830.63 132,660.00 133,542.50 129,182.50 129,603.75 134,702.50 61,050.00 63,712.50 61,237.50 $ 9,422,598.40 $3,060,000(e) $3,604,407.86 (a) 77.1 % of this debt will be retired within ten years. (b) 81.1% of this debt will be retired within ten years. (c) Includes the Bonds at an assumed average annual interest rate of 4.00 %. (d) 52.2% of this debt will be retired within ten years. (e) 94.3% of this debt will be retired within ten years. Annual Calendar Year Debt Service Payments Including This Issue (continued) Installment Contract and Lease Obligations Year 2007 (at 4 -30) 2008 2009 2010 Total Indirect Debt Taxing Unit(a) Anoka County ISD 12 (Centennial) ISD 624 (White Bear Lake) ISD 831 (Forest Lake) Metropolitan Council Metropolitan Transit District Total (a) (b) (c) (d) (e) Principal (Paid) $350,000 365,000 205.000 $920,000 2006 Taxable Net Tax Capacity $ 331,413,050 31,706,166 75,201,048 54,424,203 3,342,207,897 2,711,740,994 Principal & Interest $ 22,682.50 386,977.50 384,465.00 210,170.00 $1,004,295.00 G.O. Debt As of 4- 30 -07(b) $109,675,000(c) 74,675,000 67,800,000 36,415,000 32,305,000(d) 184,170,000(e) Debt Applicable to Tax Capacity in City Percent Amount 6.5% 46.6 3.6 7.6 0.6 0.8 $ 7,128,875 34,798,550 2,440,800 2,767,540 193,830 1,473,360 $48,802,955 Only those taxing units with general obligation debt outstanding are included here. Excludes general obligation debt supported by revenues and annual allotments of state -aid and revenue debt, but includes long -term lease obligations. Includes $2,930,000 of various public project revenue refunding bonds issued by the City of Blaine Economic Development Authority, all of which are payable solely by the County pursuant to a lease agreement between the County and the various public entities. Also includes approximately $20,885,000 general obligation bonds scheduled to be awarded on June 26, 2007. Excludes general obligation debt supported by sanitary sewer revenues, 911 user fees, and housing rental payments. Includes certificates of participation. Includes lease revenue bonds. subject to annual appropriation, issued by the Bloomington Port Authority for constructing and equipping a transit station and parking ramp. Debt Ratios G.O. Net Direct Debt* To 2006 Indicated Market Value ($2,205,729,405) 0.89% Per Capita (19,698 -2005 Metropolitan Council estimate) $991 Excludes general obligation debt supported by revenues and includes installment obligations. G.O. Indirect & Net Direct Debt* 3.10% $3,469 contract and lease CITY TAX RATES, LEVIES AND COLLECTIONS Tax Capacity Rates For a City Resident in Independent School District No. 12 2006/07 For 2002/03 2003/04 2004/05 2005/06 Total Debt Only Anoka County(a) 38.469% 35.765% 33.581% 32.543% 31.094% 3.998% City of Lino Lakes 47.603 42.287 42.223 41.398 38.994 4.091 ISD No. 12 (Centennial)(b) 37.369 36.566 37.411 40.187 38.090 28.551 Special Districts(c) 6.295 5.829 6.195 6.032 5.180 1.487 Total 129.736% 120.447% 119.410% 120.160% 113.358% 38.127% (a) (b) Includes Anoka County Library and County /City Radio. Independent School District No. 12 (Centennial) also has a 2006/07 tax rate of 0.12720% spread on the market value of property in support of an excess operating levy. (c) Special districts include Metropolitan Council, Metropolitan Transit District, Metropolitan Mosquito Control, Rice Creek Watershed, and Anoka County Railroad Authority. NOTE: Property taxes are determined by multiplying the net tax capacity by the tax capacity rate, plus multiplying the referendum market value by the market value rate. This table does not include market value based rates. (See Appendix Ill.) Tax Levies and Collections Collected During Collected Net Collection Year As of 12 -31 -06 Levy /Collect Levy* Amount Percent Amount Percent 2006/07 $8,456,328 (In Process of Collection) 2005/06 7,694,442 $7,588,163 98.6% $7,588,163 98.6% 2004/05 6,954,239 6,867,803 98.8 6,911,791 99.4 2003/04 6,200,404 6,139,224 99.0 6,180,142 99.7 2002/03 5,735,745 5,658,922 98.7 5,732,602 99.9 The net levy excludes state aid for property tax relief and fiscal disparities, if applicable. The net levy is the basis for computing tax capacity rates. See Appendix Ill. FUNDS ON HAND As of April 30, 2007 Fund Cash and Investments General Fund $ 3,290,736 Special Revenue 104,059 Capital Projects 4,351,186 Enterprise Funds 6,408,592 Debt Service Fund 3,036,395 Agency Funds 1,803,297 Total $18,994,265 - 13 - CITY INVESTMENTS As of April 30, 2007, the City had a total of $18,994,265, invested in the following manner: Checking /CDs /money market U.S. treasuries and agencies Government mutual funds Bonds Total $ 9,026,417 7,832,429 1,498,419 637,000 $18,994,265 Percent of Portfolio 47.52% 41.24 7.89 3.35 100.0% In October 1997, the City adopted an investment policy that is in accordance with Minnesota Statutes 118A. Some highlights of the City's investment policy are as follows: 1. The primary objective is the safety of the principal. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risks and interest rate risk. a. Investments will be limited to those investments specified in Minnesota Statutes 118A. b. Annually appointing the financial institutions, brokers /dealers, intermediaries and advisors. c. Diversifying the investment portfolio so that potential losses on individual securities will be minimized. d. Investing funds in primarily shorter -term securities. 2. The secondary objective is to have the portfolio remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. 3. The third objective is to attain a market rate of return through budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. 4. The Finance Director and his /her appointed employees in case of unavailability are authorized to manage the investment program. A system of internal controls shall be followed and shall be designed to prevent losses from theft or misuse to provide reasonable assurance that the objectives are met. 5. The Finance Director will prepare an investment report Administrator. 6. All City Funds must be invested with financial institutions investment services per statute 118A.06, with representatives with institutions which have a minimum capital requirement of five years of operation. monthly for the City authorized to provide who are licensed and $5 million and at least GENERAL INFORMATION CONCERNING THE CITY Lino Lakes is located in southeast Anoka County, approximately 20 miles north of St. Paul. The City is part of the Minneapolis /St. Paul Metropolitan Area and covers an area of approximately 33 square miles (21,120 acres). Two major Twin Cities freeways, I -35E and I -35W, and Minnesota Highway 49 traverse the community. The following table shows the City's recent population increases: 2005 (Metropolitan Council Estimate) 2000 (U.S. Census) 1990 (U.S. Census) 1980 (U.S. Census) 1970 (U.S. Census) Employment Major employers in the City include the following: Employer State of Minnesota AdGraphics Target Corporation Anoka County Juvenile Center Synovis Interventional Systems Molin Concrete Products Co. Summit Fire Protection Nol -Tec Systems, Inc. Custom Manufacturing & Engineering Population 19,698 16,791 8,807 4,966 3,692 Product/Service Increase 17.3% 90.7 77.3 34.5 Medium security prison Prom /party supplies Retail Juvenile and adult detention center Surgical and medical instruments Concrete products Installing building equipment Pneumatic conveyors Precision plastics Source: Telephone survey of individual employers, May 2007. Labor Force Data Anoka County Mpls. /St. Paul MSA State of Minnesota April 2007 Civilian Unemployment Labor Force Rate 194,177 1,848,607 2,942,500 4.5% 4.2 4.6 Approximate Number of Employees April 2006 600 260 240 160 160 135 100 70 60 Civilian Labor Force 191,753 1,828,541 2,911,311 Unemployment Rate 3.8% 3.6 4.0 Source: Minnesota Department of Employment and Economic Development. 2007 data are preliminary. Summary of Building Permits Total Permits New Single Family Homes Number Value Number Value 2007 (to 4 -30) 167 $15,362,858 33 $ 5,860,089 2006 686 42,078,007 91 15,910,108 2005 837 53,656,592 196 37,604,938 2004 835 61,579,910 190 39,006,745 2003 826 55,864,076 112 25,687,000 2002 860 53,977,610 218 39,425,255 2001 1,042 74,974,042 210 39,695,169 2000 1,186 57,080,794 240 42,117,164 1999 893 54,522,159 243 34,337,713 1998 947 49,033,711 229 31,635,569 1997 597 32,666,843 197 24,232,078 The economic development effort established in 1993 by the City Council has begun to have 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. 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. Two anchor tenants, Target and Kohl's Department Store, both 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 building of approximately 6,000 square -feet each were added to the area during 2005. A Wells Fargo branch bank was constructed in 2005 and opened in early 2006. 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. 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 this development. Country Inn and Suites completed construction and opened in 2006. The YMCA is 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 and and infrastructure. The City has issued General Obligation 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 Fall 2006 and scheduled to open Summer 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 I -35W and Lake Drive are scheduled to begin May 2007. This construction will be completed July 2008. Engineering estimates for these improvements is approximately $10.4 million and will be financed with joint efforts of MNDOT, Anoka County and the City. This Issue and use of Minnesota State Aid funds will be used to finance its portion of the project cost. - 16 - Residential Development The following table shows projected lot development in existing subdivisions for single - family homes: Subdivision As of April 30, 2007 Total Lots Lots Remaining Century Farm North 58 4 Century Farm North 2nd Addition 65 10 Century Farm North 3rd Addition 52 32 Century Farm North 4th Addition 43 43 Clearwater Creek 4th Addition 58 4 Clearwater Creek 5th Addition 57 1 Foxborough 57 52 Hailey Manor 14 4 Highland Meadows East 2nd Addition 18 7 Highland Meadows West 110 3 Highland Meadows West 3nd Addition 69 2 Junes Addition 4 2 Marshan Estates 4 3 Marshan Meadows 20 17 Millers Crossroads 107 26 Millers Crossroads 2nd Addition 50 42 Millers Crossroads 3rd Addition 32 16 Oakwood View Addition 10 9 Pheasant Hills Preserve 8th Addition 16 1 Pheasant Hills Preserve 9th Addition 15 2 Pheasant Hills Preserve 10th Addition 16 1 Pine Glen 35 27 Pine Glen 2nd Addition 37 37 Raven's Hollow 56 29 Stoneybrook 103 16 Turnberry Crossing (Marshan Townhomes 2 "d) 23 21 Vaughan Addition 5 5 West Shadow Ponds 22 4 West Shadow Ponds 2nd Addition 2 2 Education Lino Lakes residents are served by three school districts. The majority of the City's value lies within Independent School District No. 12 (Centennial) and Independent School District No. 831 (Forest Lake), with a small portion in Independent School District No. 624 (White Bear Lake). The 2006/07 enrollment for Independent School District No. 12 was 6,986 students; for Independent School District No. 831, it was 8,520. GOVERNMENTAL ORGANIZATION AND SERVICES Lino Lakes was incorporated as a village in 1955, became a statutory city on January 1, 1974 and is now governed by a Home Rule Charter as adopted on January 12, 1982. The City is governed by a Mayor and four Council members. The Mayor is elected to a two -year term of office and Council members are elected to four -year terms. The Council is currently comprised of the following members: Expiration of Term John Bergeson Mayor December 31, 2007 Donna Carlson Council Member December 31, 2007 Jeff O'Donnell Council Member December 31, 2009 Jeff Reinert Council Member December 31, 2009 Daniel Stoltz Council Member December 31, 2007 The City Administrator, Mr. Gordon Heitke, is responsible for administration of City policy. Mr. Heitke has been with the City since February 2004. The City's Finance Director is Mr. Alan Rolek, who has been with the City since April 2000. The City currently employs 72 full -time and 5 part-time personnel. Police protection is provided by 26 sworn police officers. Fire protection is provided by the Centennial Fire District which is comprised of the cities of Lino Lakes, Circle Pines, and Centerville. The District has a volunteer force of 52 members. The City has a class 5 insurance rating. Lino Lakes has established a Comprehensive Plan to direct all areas of growth within the City. The plan was approved by the Metropolitan Council in 1981 and was amended in 1987, 1990, 1991, 1992, and 2001. Further refinements are currently under review. Eighteen parks and playgrounds are maintained by the City and include ball fields, hockey and skating rinks, playground and picnic facilities, and 20 miles of trails. Anoka County owns a 2,500 -acre park and an 18 -hole golf course within the City. The City currently provides municipal sewer and water through the operation of four wells, two water towers, and four lift stations. The City currently has 4,282 users of its sewer system and 4,090 users of its water system. The City has established a policy that provides that municipal water services will be extended only to sewered areas. Employee Pensions 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 cost - sharing multiple - employer retirement plans. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security and Basic members are not. All new members must participate in the Coordinated Plan. All police officers, fire fighters and peace officers who qualify for membership by statute are covered by the PEPFF. The City's contributions to the PERF for the years ended December 31, 2006, 2005, and 2004 were $156,599, $136,230, $128,263, and $124,431, respectively. The City's contributions to the PEPFF for the years ended December 31, 2006, 2005, and 2004 were $187,712, $158,282, $146,820, and $139,726, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. Other Post - Employment Benefits The Governmental Accounting Standards Board (GASB) has issued Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (GASB 45), which addresses how state and local governments must account for and report their obligations related to post - employment healthcare and other non - pension benefits (referred to as Other Post Employment Benefits or "OPEB "). GASB 45 requires that local governments account for and report the annual cost of OPEB and the outstanding obligations and commitments related to OPEB in essentially the same manner as they currently do for pensions. The City of Lino Lakes does not offer post - employment or post- retirement benefits to City employees, except for public safety employee or families of public safety employees disabled or killed in the line of duty, as required by Minnesota Statutes. Employees leaving employment may continue insurance coverage under COBRA, and early retirees may continue insurance coverage, per Minnesota Statues, at their own expense, until age 65. Therefore, the City's greatest liability under GASB 45 would come through an implicit rate subsidy. The implicit rate subsidy is the additional cost of health insurance to current employees and the City as a result of the higher cost of providing health insurance to retirees. It is the City's intention to quantify this liability through actuarial estimate or another acceptable method and to disclose it in the notes to the financial statements by the deadline date for implementation. General Fund Budget Adopted 2006 Adopted 2007 Budget Budget Revenues: Property Taxes $6,757,626 $7,298,995 Licenses and permits 866,600 827,550 Intergovernmental 365,000 695,000 Charges for services 20,000 22,500 Public Safety 108,000 156,000 Fines and forfeits 110,000 110,000 Investment earnings 80,000 150,000 Administrative Charges 70,000 70,000 Miscellaneous 230,000 279,200 Total General Fund Revenues $8 607,226 $9,609,245 Expenditures: Administration $1,325,333 $1,311,470 Community Development 1,094,731 1,305,018 Public Safety 3,350,148 3,627,635 Public Services 2,250,404 2,575,122 Contingency /Other 586,610 790,000 Total General Fund Expenditures $8,607,226 $9,609,245 Kennedy Graven CHARTERED PROPOSED FORM OF LEGAL OPINION 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis MN 55402 (612) 337 -9300 telephone (612) 337 -9310 fax http://www.kennedy-graven.com $4,215,000 General Obligation Tax Increment Bonds, Series 2007A City of Lino Lakes Anoka County, Minnesota APPENDIX I We have acted as bond counsel to the City of Lino Lakes (the "Issuer ") in connection with the issuance by the Issuer of its General Obligation Tax Increment Bonds, Series 2007A, (the "Bonds "), originally dated as of July 15, 2007, and issued in the original aggregate principal amount of $4,215,000. In such capacity and for the purpose of rendering this opinion we have examined certified copies of certain proceedings, certifications and other documents, and applicable laws as we have deemed necessary. Regarding questions of fact material to this opinion, we have relied on certified proceedings and other certifications of public officials and other documents furnished to us without undertaking to verify the same by independent investigation. Under existing laws, regulations, rulings and decisions in effect on the date hereof, and based on the foregoing we are of the opinion that: 1.The Bonds have been duly authorized and executed, and are valid and binding general obligations of the Issuer, enforceable in accordance with their terms. 2. The principal of and interest on the Bonds are payable from tax increments resulting from increases in the taxable value of real property in certain tax increment financing districts of the Issuer, and from ad valorem taxes, but if necessary for the payment thereof additional ad valorem taxes are required by law to be levied on all taxable property of the Issuer, which taxes are not subject to any limitation as to rate or amount. 3. Interest on the Bonds is excludable from gross income of the recipient for federal income tax purposes and, to the same extent, is excludable from taxable net income of individuals, trusts, and estates for Minnesota income tax purposes, and is not a preference item for purposes of the computation of the federal alternative minimum tax, or the computation of the Minnesota alternative minimum tax imposed on individuals, trusts and estates. However, such interest is taken into account in determining adjusted current earnings for the purpose of computing the federal alternative tax imposed on certain corporations and is subject to Minnesota franchise taxes on corporations (including financial institutions) measured by income and the alternative minimum tax base. The opinion set forth in this paragraph is subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excludable from gross income for federal and Minnesota income tax purposes. The Issuer has covenanted to comply with all such requirements. Failure to comply with certain of such requirements may cause interest on the Bonds to be included in gross income for federal and Minnesota income tax purposes retroactively to the date of issuance of the Bonds. We express no opinion regarding tax consequences arising with respect to the Bonds other than as expressly set forth herein. 4.The rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditor's rights generally and by equitable principles, whether considered at law or in equity. We have not been asked and have not undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we express no opinion with respect thereto. This opinion is given as of the date hereof and we assume no obligation to update, revise, or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur. Dated , 2007 at Minneapolis, Minnesota. APPENDIX II CONTINUING DISCLOSURE CERTIFICATE This Continuing Disclosure Certificate (the "Disclosure Certificate ") is executed and delivered by the City of Lino Lakes, Minnesota (the "Issuer ") in connection with the issuance of $4,215,000 General Obligation Tax Increment Bonds, Series 2007A (the "Bonds "). The Bonds are being issued pursuant to an authorizing resolution adopted by the City Council of the Issuer on May 29, 2007 and an award resolution adopted by the City Council of the Issuer on June 25, 2007 (collectively, the "Resolutions ") and delivered to the Purchaser(s) on the date hereof. Pursuant to the Resolutions, the Issuer has covenanted and agreed to provide continuing disclosure of certain financial information and operating data and timely notices of the occurrence of certain events. In addition, the Issuer hereby covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the Holders (defined herein) of the Bonds in order to assist the Participating Underwriters (defined herein) in complying with SEC Rule 15c2- 12(b)(5). This Disclosure Certificate, together with the Resolutions, constitutes the written agreement or contract for the benefit of the Holders of the Bonds that is required by the Rule. Section 2. Definitions. In addition to the defined terms set forth in the Resolutions, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" means any annual report provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. "Audited Financial Statements" means the Issuer's annual financial statements, prepared in accordance with generally accepted accounting principles ( "GAAP ") for Governmental Units as Prescribed by the Governmental Accounting Standards Board ( "GASB "). "Fiscal Year" means the fiscal year of the Issuer. "Final Official Statement" means the deemed final official statement dated , 2007 plus the addendum thereto which together constitute the final official statement delivered in connection with the Bonds, which is available from the MSRB. "Holder" means the person in whose name a security is registered or a beneficial owner of such a security. "Issuer" means the City of Lino Lakes, Minnesota which is the obligated person with respect to the Bonds. "Material Event" means any of the events listed in Section 5(a) of this Disclosure Certificate. "MSRB" means the Municipal Securities Rulemaking Board located at 1900 Duke Street, Suite 600, Alexandria, VA 22314. "NRMSIR" means any nationally recognized municipal securities information repository as recognized from time to time by the SEC for purposes of the Rule. "Participating Underwriter" means any of the original underwriter(s) of the Bonds (including the Purchaser(s)) required to comply with the Rule in connection with the offering of the Bonds. "Repository" means each NRMSIR and each SID, if any. "Rule" means SEC Rule 15c2- 12(b)(5) promulgated by the SEC under the Securities Exchange Act of 1934, as the same may be amended from time to time, and including written interpretations thereof by the SEC. "SEC" means Securities and Exchange Commission. "SID" means any public or private repository or entity designated by the State of Minnesota as a state information depository for the purpose of the Rule. As of the date of this Certificate, there is no SID. Section 3. Provision of Annual Financial Information and Audited Financial Statements. (a) The Issuer shall provide, as soon as available, but not later than 12 months after the end of the Fiscal Year commencing with the year that ends December 31, 2007, each Repository with an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross - reference other information as provided in Section 4 of this Disclosure Certificate; provided that the Audited Financial Statements of the Issuer may be submitted separately from the balance of the Annual Report and will be submitted as soon as available. (b) If the Issuer is unable or fails to provide to the Repositories an Annual Report by the date required in subsection (a), the Issuer shall send a notice of that fact to the Repositories and the MSRB. (c) The Issuer shall determine each year prior to the date for providing the Annual Report the name and address of each Repository. Section 4. Content of Annual Reports. The Issuer's Annual Report shall contain or incorporate by reference the following sections of the Final Official Statement: 1. City Property Values. 2. City Indebtedness. 3. City Tax Rates, Levies and Collections Any filing under this Disclosure Certificate may be made solely by transmitting such filing to the Texas Municipal Advisory Council (the "MAC ") as provided at http: / /www.disclosureusa.org unless the SEC has withdrawn the interpretive advice in its letter to the MAC dated September 7, 2004. In addition to the items listed above, the Annual Report shall include Audited Financial Statements submitted in accordance with Section 3 of this Disclosure Certificate. Any or all of the items listed above may be incorporated by reference from other documents, including official statements of debt issues of the Issuer or related public entities, which have been submitted to each of the Repositories or the SEC. If the document incorporated by reference is a final official statement, it must also be available from the MSRB. The Issuer shall clearly identify each such other document so incorporated by reference. Section 5. Reporting of Material Events. (a) This Section 5 shall govern the giving of notices of the occurrence of any of the following events if material with respect to the Bonds: 1. Principal and interest payment delinquencies; 2. Non - payment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax - exempt status of the security; 7. Modifications to rights of security holders; 8. Bond calls; 9. Defeasances; 10. Release, substitution or sale of property securing repayment of the securities; and 11. Rating changes. (b) Whenever the Issuer obtains knowledge of the occurrence of a Material Event, the Issuer shall promptly file a notice of such occurrence with either all NRMSIRs or with the MSRB and with any SID. Notwithstanding the foregoing, notice of Material Events described in subsections (a)(8) and (9) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to Holders of affected Bonds pursuant to the Resolutions. (c) Unless otherwise required by law and subject to technical and economic feasibility, the Issuer shall employ such methods of information transmission as shall be requested or recommended by the designated recipients of the Issuer's information. Section 6. Termination of Reporting Obligation. The Issuer's obligations under the Resolutions and this Disclosure Certificate shall terminate upon the legal defeasance, or upon the redemption or payment in full of all the Bonds. Section 7. Anent. The Issuer may, from time to time, appoint or engage a dissemination agent to assist it in carrying out its obligations under the Resolutions and this Disclosure Certificate, and may discharge any such agent, with or without appointing a successor dissemination agent. Section 8. Amendment; Waiver. Notwithstanding any other provision of the Resolutions or this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, if such amendment or waiver is supported by an opinion of nationally recognized bond counsel to the effect that such amendment or waiver would not, in and of itself, cause a violation of the Rule. The provisions of the Resolutions constituting the Undertaking and this Disclosure Certificate, or any provision hereof, shall be null and void in the event that the Issuer delivers to each then existing NRMSIR and the SID, if any, an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require the Resolutions and this Disclosure Certificate are invalid, have been repealed retroactively or otherwise do not apply to the Bonds. The provisions of the Resolutions and this Disclosure Certificate may be amended without the consent of the Holders of the Bonds, but only upon the delivery by the Issuer to each then existing NRMSIR and the SID, if any, of the proposed amendment and an opinion of nationally recognized bond counsel to the effect that such amendment, and giving effect thereto, will not adversely affect the compliance of the Resolutions and this Disclosure Certificate and by the Issuer with the Rule. Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event in addition to that which is specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Material Event. Section 10. Default. In the event of a failure of the Issuer to comply with any provision of this Disclosure Certificate any Holder of the Bonds may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its obligations under the Resolutions and this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an event of default with respect to the Bonds and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action to compel performance. Section 11. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Issuer, the Participating Underwriters and Holders from time to time of the Bonds, and shall create no rights in any other person or entity. (The remainder of this page is intentionally left blank.) IN WITNESS WHEREOF, we have executed this Certificate in our official capacities effective the day of , 2007. CITY OF LINO LAKES, MINNESOTA Mayor City Administrator APPENDIX III SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND MINNESOTA REAL PROPERTY VALUATION (effective through levy year 2006 /payable year 2007) Following is a summary of certain statutory provisions effective through levy year 2006 /payable year 2007 relative to tax levy procedures, tax payment and credit procedures, and the mechanics of real property valuation. The summary does not purport to be inclusive of all such provisions or of the specific provisions discussed, and is qualified by reference to the complete text of applicable statutes, rules and regulations of the State of Minnesota. Property Valuations (Chapter 273, Minnesota Statutes) Assessor's Estimated Market Value. Each parcel of real property subject to taxation must, by statute, be appraised at least once every five years as of January 2 of the year of appraisal. With certain exceptions, all property is valued at its market value, which is the value the assessor determines to be the price the property to be fairly worth, and which is referred to as the "Estimated Market Value." Limitation of Market Value Increases. Minn. Stat., Sec. 273.11, Subdivision la, was amended in 2005. For assessment years 2005 and 2006, the amount of the increase shall not exceed the greater of (1) 15% of the value in the preceding assessment, or (2) 25% of the difference between the current assessment and the preceding assessment. For assessment year 2007, the amount of the increase shall not exceed the greater of (1) 15% of the value in the preceding assessment, or (2) 33% of the difference between the current assessment and the preceding assessment. For assessment year 2008, the amount of increase shall not exceed the greater of (1) 15% of the value in the preceding assessment or (2) 50% of the difference between the current assessment and the preceding assessment. Taxable Market Value. The Taxable Market Value is the value that property taxes are based on, after all reductions, limitations, exemptions and deferrals. It is also the value used to calculate a municipality's legal debt limit. Indicated Market Value. The Indicated Market Value is determined by dividing the Taxable Market Value of a given year by the same year's sales ratio determined by the State Department of Revenue. The Indicated Market Value serves to eliminate disparities between individual assessors and equalize property values statewide. Net Tax Capacity. The Net Tax Capacity is the value upon which net taxes are levied, extended and collected. The Net Tax Capacity is computed by applying the class rate percentages specific to each type of property classification against the Taxable Market Value. Class rate percentages vary depending on the type of property as shown on the last page of this Appendix. The formulas and class rates for converting Taxable Market Value to Net Tax Capacity represent a basic element of the State's property tax relief system and are subject to annual revisions by the State Legislature. Property taxes are determined by multiplying the Net Tax Capacity by the tax capacity rate, plus multiplying the referendum market value by the market value rate. Property Tax Payments and Delinquencies (Chapters 275, 276, 277, 279 -282 and 549, Minnesota Statutes) Ad valorem property taxes levied by local governments in Minnesota are extended and collected by the various counties within the State. Each taxing jurisdiction is required to certify the annual tax levy to the county auditor within five (5) working days after December 20 of the year preceding the collection year. A listing of property taxes due is prepared by the county auditor and turned over to the county treasurer on or before the first business day in March. The county treasurer is responsible for collecting all property taxes within the county. Real estate and personal property tax statements are mailed out by March 31. One -half (1/2) of the taxes on real property is due on or before May 15. The remainder is due on or before October 15. Real property taxes not paid by their due date are assessed a penalty that, depending on the type of property, increases from 2% to 4% on the day after the due date. In the case of the first installment of real property taxes due May 15, the penalty increases to 4% or 8% on June 1. Thereafter, an additional 1% penalty shall accrue each month through October 1 of the collection year for unpaid real property taxes. In the case of the second installment of real property taxes due October 15, the penalty increases to 6% or 8% on November 1 and increases again to 8% or 12% on December 1. Personal property taxes remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attaches to the unpaid tax. However, personal property that is owned by a tax - exempt entity, but is treated as taxable by virtue of a lease agreement, is subject to the same delinquent property tax penalties as real property. On the first business day of January of the year following collection all delinquencies are subject to an additional 2% penalty, and those delinquencies outstanding as of February 15 are filed for a tax lien judgment with the district court. By March 20 the clerk of court files a publication of legal action and a mailing of notice of action to delinquent parties. Those property interests not responding to this notice have judgment entered for the amount of the delinquency and associated penalties. The amount of the judgment is subject to a variable interest determined annually by the Department of Revenue, and equal to the adjusted prime rate charged by banks, but in no event is the rate Tess than 10% or more than 14 %. Property owners subject to a tax lien judgment generally have five years (5) in the case of all property located outside of cities or in the case of residential homestead, agricultural homestead and seasonal residential recreational property located within cities or three (3) years with respect to other types of property to redeem the property. After expiration of the redemption period, unredeemed properties are declared tax forfeit with title held in trust by the State of Minnesota for the respective taxing districts. The county auditor, or equivalent thereof, then sells those properties not claimed for a public purpose at auction. The net proceeds of the sale are first dedicated to the satisfaction of outstanding special assessments on the parcel, with any remaining balance in most cases being divided on the following basis: county - 40 %; town or city - 20 %; and school district - 40 %. Property Tax Credits (Chapter 273, Minnesota Statutes) In addition to adjusting the taxable value for various property types, primary elements of Minnesota's property tax relief system are: property tax levy reduction aids; the circuit breaker credit, which relates property taxes to income and provides relief on a sliding income scale; and targeted tax relief, which is aimed primarily at easing the effect of significant tax increases. The circuit breaker credit and targeted credits are reimbursed to the taxpayer upon application by the taxpayer. Property tax levy reduction aid includes educational aids, local governmental aid, equalization aid, county program aid and disparity reduction aid. Debt Limitations All Minnesota municipalities (counties, cities, towns and school districts) are subject to statutory "net debt" limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is defined as the amount remaining after deducting from gross debt the amount of current revenues that are applicable within the current fiscal year to the payment of any debt and the aggregate of the principal of the following: 1. Obligations issued for improvements that are payable wholly or partially from the proceeds of special assessments levied upon benefited property. 2. Warrants or orders having no definite or fixed maturity. 3. Obligations payable wholly from the income from revenue producing conveniences. 4. Obligations issued to create or maintain a permanent improvement revolving fund. 5. Obligations issued for the acquisition and betterment of public waterworks systems, and public lighting, heating or power systems, and any combination thereof, or for any other public convenience from which revenue is or may be derived. 6. Certain debt service loans and capital loans made to school districts. 7. Certain obligations to repay loans. 8. Obligations specifically excluded under the provisions of law authorizing their issuance. 9. Certain obligations to pay pension fund liabilities. 10. Debt service funds for the payment of principal and interest on obligations other than those described above. 11. Obligations issued to pay judgments against the municipality. Levies for General Obligation Debt (Sections 475.61 and 475.74, Minnesota Statutes) Any municipality that issues general obligation debt must, at the time of issuance, certify levies to the county auditor of the county(ies) within which the municipality is situated. Such levies shall be in an amount that if collected in full will, together with estimates of other revenues pledged for payment of the obligations, produce at least five percent in excess of the amount needed to pay principal and interest when due. Notwithstanding any other limitations upon the ability of a taxing unit to levy taxes, its ability to levy taxes for a deficiency in prior levies for payment of general obligation indebtedness is without limitation as to rate or amount. Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes) "Fiscal Disparities Law" The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as "Fiscal Disparities," was first implemented for taxes payable in 1975. Forty percent of the increase in commercial - industrial (including public utility and railroad) net tax capacity valuation since 1971 in each assessment district in the Minneapolis /St. Paul seven - county metropolitan area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott, excluding the City of New Prague, and Washington Counties) is contributed to an area -wide tax base. A distribution index, based on the factors of population and real property market value per capita, is employed in determining what proportion of the net tax capacity value in the area - wide tax base shall be distributed back to each assessment district. STATUTORY FORMULAE: CONVERSION OF TAXABLE MARKET VALUE (TMV) TO NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS Local Tax Local Tax Local Tax Local Tax Local Tax Payable Payable Payable Payable Payable Property Type 2003 2004 2005 2006 2007 Residential Homestead Up to $500,000 1.000% 1.000% 1.000% 1.000% 1.000% Over $500,000 1.250% 1.250% 1.250% 1.250% 1.250% Residential Non - homestead Single Unit Up to $500,000 1.000% 1.000% 1.000% 1.000% 1.000% Over $500,000 1.250% 1.250% 1.250% 1.250% 1.250% 1 -3 unit and undeveloped land 1.250% 1.250% 1.250% 1.250% 1.250% Market Rate Apartments Regular 1.500% 1.250% 1.250% 1.250% 1.250% Small City 1.500% 1.250% 1.250% 1.250% 1.250% Low- Income 1.000%1 0.750 %' 0.750%1 Commercial /Industrial /Public Utility Up to $150,000 1.500% 1.500% 1.500% 1.500% 1.500% Over $150,000 2.000% 2.000% 2.000% 2.000% 2.000% Electric Generation Machinery 2.000% 2.000% 2.000% 2.000% 2.000% Seasonal Recreational Commercial Homestead Resorts (1c) Up to $500,000 1.000% 1.000% 1.000% 1.000% 0.550% $500,000 - $2,200,000 1.250% 1.250% 1.250% 1.250% 1.000% Over $2,200,000 1.250% 1.250% 1.250% 1.250% 1.250% Seasonal Resorts (4c) Up to $500,000 1.000% 1.000% 1.000% 1.000% 1.000% Over $500,000 1.250% 1.250% 1.250% 1.250% 1.250% Seasonal Recreational Residential Up to $500,000 1.000 %2 1.000 %2 1.000 %2 1.000 %2 1.000 %2 Over $500,000 1.250 %2 1.250 %2 1.250 %2 1.250 %2 1.250 %2 Disabled Homestead 0.450% 0.450% 0.450% 0.450% 0.450% Agricultural Land & Buildings Homestead Up to $600,000 0.550 %2 0.550 %2 0.550 %2 0.550 %2 0.550 %2 Over $600,000 1.000 %2 1.000 %2 1.000 %2 1.000 %2 1.000 %2 Non - homestead 1.000 %2 1.000 %2 1.000 %2 1.000 %2 1.000 %2 1 Rate increased to 1% in pay 2003, classification abolished for pay 2004 and pay 2005, and re- established at a rate of 0.75% in pay 2006 and thereafter. 2 Exempt from referendum market value tax. APPENDIX IV EXCERPT OF 2006 ANNUAL FINANCIAL STATEMENTS The City is audited annually by an independent certified public accounting firm. Data on the following pages was extracted from the City's comprehensive annual financial report for fiscal year ended December 31, 2006 (the "CAFR "). The reader should be aware that the complete CAFR may contain additional information which may interpret, explain, or modify the data presented here. The complete CAFR is available at the offices of the City. The City has been awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada (GFOA) for its comprehensive annual financial report for the year ended December 31, 2005. The Certificate of Achievement is the highest form of recognition for excellence in State and local government financial reporting. The City has received this award every year since 1996. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such CAFR 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 believes its CAFR continues to conform to the Certificate of Achievement program requirements and is submitting its CAFR for the 2006 fiscal year to GFOA. Lars•nAllen LLP 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 fmancial 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 fmancial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to fmancial 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 fmancial 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 fmancial 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. 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 IV -2 LarsonAllen LLP CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET ASSETS December 31, 2006 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 m 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 es in Net Assets Revenue and Chan a 0 F t44 d N 'r� se = ;a m ✓ u •n 00 ▪ L OS u S 00 Functions /Pro n — •-• - — 0 0 — 1 — — v1 N Os r'l O M 0, CO \O —• h N nv'on —\o a, vv 65 r Nl 0 U 69 ul = — ON CO O — 'f n ,n O' O M OT 00 NO - r N t ^ ? r — ',D O� N N N v v • • • • O N •0 O� 69 of 0 00 • • Nl N C 0 N M to r v' 00 00 se O- se N •n N '0 O M r v —o'o N Q M h M O_ v, r- v 00 vl 00 7 O 00 VO O OD Q N 00 N 00 ? — v1 •O 00 CO N O — N h '0 Nl O. CO N 00 fn ON Q vn oo O .O sO — N 'O — lD 00 r- 'D vl O, N 00 Nl GO — — ON N M M — ten h M O 0 N 0O Ni 0' r N O 0 O O N N • R • r h h N 0000 0 'r rn ON ON so 46 00 R 00 'O CO N - O h v — h_ O' N r N sO 00 r N O N 00 00 a CO n 00 0 n ON 00 00 r- 0 00 O' 00 e 0 h 00 00 ON r ✓ 00 N — n • 00 0 N1 00 — 10 Q 00 f N 00 O r N R NO M ON 00 I--. • vl 00 r r • M 0■ h OV N N [f 00 N Q r- 00 O h O' — N VD C 00 r N r 00 0 M M O N Cr 'n O% h N 00 N oo M 00 N1 I-- M N r0 eM1 N — O' O h 00 O N 00 0) 0 � w NI') M NO 00 0 O 00 00 00 '0 h r a 65 ON 00 'O 69 oo Tr O h 7 6, December 31, 2006 0 e U A 2 O rn en 00 N 0' — 00 N. rn CO 'D rr vt r 00 N 00 O N fry r r a O C v 0' —N N — W O en 'D V v• 00 C N CO N vn rn 00 0 0' co v6 r — .n CD 00 w of bS 0 h CO 0' N 00 r 'D N 0' 0' N— op ND 00 CK v, 00 ✓ ON en r: ael er co 0' N N r n er ri 0' 0' vt ? v1 N 00 N Q O r O en V O' 0' 'D v) O ' O O O — N — rPr00- 0' - w c r N 'D v) h 0 0. 0' CT — 1 00 00 7 - - N r 00 • 00 It .- _ N 5 27,956,366 O 00 h O w w . . . . . n en r H N-. C 00' r - a w 00 O r- 6, VD b 00 rt rH — 00 0' N N 'D 0' O 0' N N'0 ri If O Ch vi N v] N 0' N en r 0' • rnO O h 00 A 3 E 0 C 3 ✓Vi = U u $ L V C R a L C > U y c h u E` u > u E E m mLa 2.5 c Z'' > > o o D V L U c • EL e E E o Eu E u o cE r v 't �p C 2 W 0 � 2 2 0 L Ua Uu 2 �+ Liabilities and equity 0' Q vt — N N — 'Dr —o v r 00 rn en 'D O' — r ✓ O O r r Q N • —Q 0'O O 04 0` N rn b N N 00 .0 0 00 n N D' 00 r r1 o0 — r" Q Q ✓t O CT rn w 0▪ 0 0' 00 N rn M w ' co ' N 0' N al. r '0 N oo F h N • 1..1 N er Q 0 OCT N Y9 • O r N _O — — h N r er 0' 0 rn rn CO — v r N N o v 00 rn 00 00 r r •e 0 • 0 N • 'D ND 0 rn r•- r•■ • • N o' E . ' h 00 — fV CO en N e•• b ✓ N Q r7 00 0. h tel v' 00 rt en — N N m eel 00 2 ✓ o0 r r 00 en 0 04 CV- CD 00 h 0-- 04 en • h O N 00 vi O CO R rq r 0' '0 N T tel ON N h V.; CO N 0' C .a u E V E O C C V V E �v t 'a C O` V C C u C V 7 L GD > > V a O 0 4) G 9 A u c> u a YO ` "V L v V 0 C e u ›L'23 23 p E L. v u OD " .d -G [— 2; 23 u !: u '^ :7 vai U U- o 23 - C S C C c4 r, u- VD en 'O 0: N Vf O 00 if O eei r H 0' rn w CO O ✓1 CITY OF LINO LAKES, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS December 31, 2006 Total Fund Balances for Governmental Funds Total net assets reported for governmental activities in the statement of net assets is different because: Capital assets used in governmental funds are not financial resources and therefore are not reported in the funds. Those assets consist of: $ 16,155,382 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. 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 Tong -term - are reported in the statement of net assets. Balances at year -end are: Bonds payable (21,687,000) Unamortized premiums (157,530) Unamortized discounts 18,523 Compensated absence payable (584,764) Total Net Assets of Governmental Activities The accompanying notes are an integral part of these basic financial statements. 10,014,771 215,754 (364,415) (22,410,771) $ 54,770,148 O E F i U • o a = Y U U m � E S E C u o U O N P O — O- n N CO — O N m O. ,n N r Q N •D„-m - r - - N N- 0 CO 0 r Q .o Q m O. ,o — r NO r — N O` N • ON m m • — m O\ en O N Q — CO T — C: - a Q 0Nm Q•O• n m Q — — n Q ro Vet ' • • N • • • r CO 0 Lel • • N O, O\ • m • O r N m N D CO O Q Q 0` O N CO P ■ m N VO N N • , Q • • O • • VD Os N CV r N' N m b CO e n en m •O 0 NO CO N O N CO O— — — N v D m ern O - C7s - N N O b NO Q CO Q e r Q O CO co sri CO v CO N Os r r en 0 N N h— b V O r en N r N — O - - 1� r b O C. •Nn ,O Q en uO O — v o N 0 n m ro- r ri .o -% r v N 0 n - .-, o •o N ■ —. o CV ` r i r- e - • m m N— O— • • Q eV 0 r Q m- N N Q Q CO N O Q o— m •C — Q r h �pp h G 172 O — N — eV Q fel N • NNO • • • O\ •O ON en •O r — N • NO NO O CO N V NO O Obv en CO r Q OG O\ N Q r N 0 N N b ■ Oar -0 m r ,c IV -7 0 ry CV a Q as ref ON rel N 0 CO N O a O, m CC 0 N O O 01 r— O N O - CO 0 0o v 0 - - oa r - = N N N b V r N m N' 0 C N — O Q •m r Q - N N v Ni CC en N N • Q ' 02 • • o r m a - r N eV m N 01 CO • 0 • N 01 CO •O •O N Q N eV ‘C. e b co eV co M O\ N m C\ re, N eV v N V Q CO CO V CITY OF LINO LAKES, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES Ycar Ended December 3I, 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) Dcprcciation expense (2,692,742) 5,708,644 The govemmental 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 $ (5,147,604) 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 Deferred revenue - December 31, 2006 $ 9,974,886 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 S 3,682,065 The accompanying notes are an integral part of these basic financial statements. CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET ASSETS - PROPRIETARY FUNDS December 31, 2006 Water Totals Sewer 2006 Assets Current assets: Cash and cash equivalents $ 4,113,623 $ 4,115,128 $ 8,228,751 Accounts receivable 143,482 192,568 336,050 Prepaid items 5,361 50,941 56,302 Unamortized bond issue costs 20,967 - 20,967 Total current assets 4,283,433 4,358,637 8,642,070 Non - current assets: Special assessments, long term 130,705 - 130,705 Capital assets: Buildings Equipment Water and sewer systems Total capital assets Less: allowance for depreciation Net capital assets Total noncurrent assets Total assets 48,690 - 48,690 108,296 210,570 318,866 18,189,822 20,783,469 38,973,291 18,346,808 20,994,039 39,340,847 (3,553,327) (4,196,150) (7,749,477) 14,793,481 16,797,889 31,591,370 14,924,186 16,797,889 31,722,075 19,207,619 21,1 56,526 40,364,145 Liabilities Current liabilities: Accounts payable $ 19,859 $ 5,212 $ 25,071 Salaries payable 2,040 1,880 3,920 Other accrued liabilities 12,988 12,988 Accrued interest payable 58,510 58,510 Bonds payable - current portion 2,015,000 - 2,015,000 Compensated absences payable - current portion 10,413 10,413 20,826 Total current liabilities 2,118,810 17,505 2,136,315 Non - current liabilities: Bondspayable - longterm 1,851,125 - 1,851,125 Compensated absences payable - long term 5,108 5,108 10,216 Total noncurrent liabilities 1,856,233 5,108 1,861,341 Total liabilities 3,975,043 22,613 3,997,656 Net assets Invested in capital assets, net of related debt 12,688,053 16,797,889 29,485,942 Unrestricted 2,544,523 4,336,024 6,880,547 Total net assets $ 15,232,576 $ 21,133,913 $ 36,366,489 The accompanying notes are an integral part of these basic financial statements. IV -9 CITY OF LINO LAKES, MINNESOTA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - PROPRIETARY FUNDS Year Ended December 31, 2006 Water Totals Sewer 2006 Operating revenue: Charges for services $ 1,107,107 $ 1,371,832 $ 2,478,939 Hook -up charges 26,321 19,870 46,191 Water meter sales 32,783 32,783 Other operating revenue 8,961 - 8,961 Total operating revenue 1,175,172 1,391,702 2,566,874 Operating expenses: Personal services 164,548 151,643 316,191 Materials and supplies 219,842 23,184 243,026 Contractual services 41,310 77,895 119,205 MCES sewer charges - 537,824 537,824 Depreciation 353,349 404,200 757,549 Utilities 53,078 25,111 78,189 Other 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 Other income (expense): Investment earnings 86,890 166,897 253,787 Special assessments 11,171 109 11,280 Bond interest (127,254) (127,254) Paying agent fees (1,964) (1,964) Total other income (expense) (31,157) 167,006 135,849 Net income before contributions and transfers 296,658 330,585 627,243 Contributions and transfers: Contributions from private sources 635,765 888,586 1,524,351 Transfer in 299,725 299,725 Total contributions and transfers 935,490 888,586 1,824,076 Net income 1,232,148 1,219,171 2,451,319 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. IV -10 CITY OF LINO LAKES, MINNESOTA STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS Year Ended December 31, 2006 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 $ 1,162,292 (356,659) (152,176) 653,457 299,725 299,725 (295,000) 1,73 5,998 28,663 (151,334) (4,302) 1,314,025 86,890 2,354,097 1,759,526 $ 4,113,623 Sewer Totals 2006 $ 1,369,295 $ 2,531,587 (716,671) (1,073,330) (150,832) (303,008) 501,792 1,155,249 817 (52,442) (51,625) 166,897 617,064 3,498,064 $ 4,115,128 $ 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. 299,725 299,725 (295,000) 1,735,998 29,480 (151,3 34) (56,744) 1,262,400 253,787 2,971,161 5,257,590 $ 8,228,751 163,579 $ 491,394 404,200 757,549 (22,407) (35,287) (44,991) (45,207) 1,411 (13,200) 501,792 $ 1,155,249 CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET ASSETS - FIDUCIARY FUNDS December 31, 2006 Assets Cash and investments Deposits receivable Totals 2006 $ 1,103,463 10,520 Total assets $ 1,113,983 Liabilities Accounts payable Deposits payable $ 17,213 1,096,770 Total liabilities $ 1,113,983 The accompanying notes are an integral part of these financial statements. IV -12 5 = - T b y .. . ^ V U n m �t _ - L9 ` w g.'= a, c t 6 o u A <- 9J ^_ o � » __ T. `o ms TIT g 92 IV -13 3 T-!.-02-ii y - E2oJ.=.. Y- r�' .,3 3 'o ` t ° s`, V= 9 t a v u u N v =' L Y 5 L z 2 u .4 ; m.g :. V : u _ u g : io_ .L .... T x ni _ - c 6.z--.g . V V v ..5 .�^� v'7 ^c e 5 m 3°° Y -.1.=.75S'7, ".6..%3,... ,<a5 l''''7.11; - i '7,5"2: o n 3 V eZ o 5 .5 2 0 .5 -'-'a-5 3_ 2 a Lea - ct< W - 3$.r 0 107 ° C F F ' c 2E� 0 3 0 a u i c Q. "T ;q J 3 3aei .�T`EgE O � r n L u 3 3c t? n V s u 2 ET3 0 _ , m 9 0 O t V o - Cfl a U NO (CUN'I'UVUED) MEASUREMENT FOCUS AND BASIS OFACCOUM B. BASIC FINANCIAL STATEMENTS (CONTINUED) 9 D C � o 5474 m p o6 s. v m4 $p.9 9 E Z c d 3 Fund Financial Statements (Continued) 0 9. 3 8 T. 9 0 4 8 3< <u U2 �sg Yo 5 bua,L U The City repuna the following major pro D. BUDGETS IV -14 MEASUREMENT FOCUS ANU BASIS OE AC'COUNT'ING LEGAL COMPLIANCE • BUDGET'S 11. PROPERTY TAX REVENUE RECOGNITION S. LEGAL COMPLIANCE - BUDGETS (CONTINUED) CASII AND INVESTMENTS IV-15 })) / / \k i]}$ !F2& 6 2.5 5 k} }§ «55 ▪ �} § )k§ '25a it ;f }2] \ \ }\ f})$ r.,2 SPECIAL ASSESSMENT REVENUE RECOGNITION Q. PROPERTY TAX CREDITS M COMPENSATED ABSENCES 1. SPECIAL ASSESSMENT REVENUE RECOGNITION (CONTINUED) N. LONG-TERM OBLIGATIONS INVENTORIES /k§ &:■ K. INTERP'UNI) RECEIVABLES /PAYABLES O. FUND EQUITY Iv- 6 L. CAPITAL ASSETS P. IN'1'EIO+UND TRANSACTIONS am Z H NM Zw Z G 0,2.4 .dZo OZr -a_ NV- • ),N= :) Z o )NVESJMEfgS J ES l'az 1 o r E `0 0 .2 7? 2.y °= x ° ¢.s ° + u 6 . = 9 g °'O q V ° 3 8:g _ 1,;&8-7:7.0.,E.. _ D v r� �° - >2 i ' 6 , - . . c m U o c` °. . a r 5° R r`oD � - a. a 'S c a o v o ° .� h P3 = $ E„ .NEar 5 1vi D S i 9 o v o D 2 7 o ° S U V ' c v 1° 0 t =i,4 u � O- '. D- .. 1 9 w y 6 D ▪ _ h . m . C u i r- D a 8 a' r 2 °r- � T°r °o5a3 ;. 1t A °a c v_ _ • . D g,:,..°2 r a w m is v . � _ � � :;; �. ?° J° o u c: o b y U l Sin h O a o v°, E ,°, r IV -17 2 vity for the year ended December 31, 2006 was as folio ss • .5J R'S` . ;.g .:s- c u s 0 E° 2 cg ^;c lo' o - $ - c ;,2 s.s� :�; ...3-,. - - 3 !-?,• -6.c. = 0 7 v V o � °, $ 3 i c 55 ▪ o' a g - V s L _ a ° a - - -.z s u. F'gO ..s f" s 7";!! VA <; ��_ 1aa• ggg5▪ cg�-.17 M2m f -< gs2o R- 0 i'2 i • -2s=, -: $ l o O m° _ 2 §2 5 - E E 3 c 9 0 2 3 - n 2 .224 _D'o -°g 5 t r3 9 F w is; r. u < E m 0 E D Q ` y a "2'2...'f,-1"-. a qu 6 ma ' Concvnuorloo of CreJlr RIBA IV -18 a e e e e e o b ry N -N eb• �v =e r. �h g a .9 5 .8 3 2 1 I 31 is 5 3 3 9 32 _ 9• fA_ §. §,F §Eiaz 8 8 Y ^ 3 R — — S a « « a 8 8 8 ;! 8 8 a _ ° = 8 4 8 y 4 a 7 3 B a 8 i$ 3 3 3.1 '! A l a X_ l m t$ zE - ' Y 2 Y Y • E pp 3 P ' y 7 7 a s aaa a i 3 2 2 > 3 > Iv -19 Ur I k�e b X 9 statements al h.c a9 �o' 5. "c —='c9 o A =o _ o - m z. Future scheduled tax levies for all bonds outstanding at December 31, 2006 totaled $23,527,497. IV -21 i 3 8 8 a,2 5 52 = U r aS v - °a.,n 0Q 3 special assessnxot 5 2 GO Program Recreation Special Revenue Fund 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 IV -23