HomeMy WebLinkAboutAnnual Financial Report 12/31/1991CITY OF LINO LAKES, MINNESOTA
ANNUAL FINANCIAL REPORT
DECEMBER 31, 1991
IMF
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Organization
Organization Chart
II. FINANCIAL SECTION
Independent Auditor's Report
Combined Financial Statements
Combined Balance Sheet - All Fund Types and Account Groups Statement 1
Combined Statement of Revenue, Expenditures and Changes in
Fund Balance - All Governmental Fund Types Statement 2
Combined Statement of Revenue, Expenditures and Changes in
Fund Balance - Budget and Actual - General Fund Statement 3
Combined Statement of Revenue, Expenses and Changes in Retained
Earnings - All Proprietary Fund Types Statement 4
Combined Statement of Cash Flows - All Proprietary Fund Types Statement 5
Notes to Fmancial Statements
Combining and Individual Fund and Account Group Financial Statements
General Fund:
Balance Sheet Statement 6
Statement of Revenue, Expenditures and Changes in
Fund Balance - Budget and Actual Statement 7
Special Revenue Fund:
Economic Development Authority:
Balance Sheet Statement 8
Statement of Revenue, Expenditures and Changes in Fund Balance Statement 9
Debt Service Funds:
Combining Balance Sheet Statement 10
Combining Statement of Revenue, Expenditures and Changes
in Fund Balance Statement 11
Capital Project Funds:
Combining Balance Sheet Statement 12
Combining Statement of Revenue, Expenditures and Changes
in Fund Balance Statement 13
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Enterprise Funds:
Combining Balance Sheet Statement 14
Combining Statement of Revenue, Expenses and Changes in
Retained Earnings Statement 15
Combining Statement of Cash Flows Statement 16
Agency Funds:
Combining Balance Sheet Statement 17
Combining Statement of Changes in Assets and Liabilities Statement 18
Statement of General Fixed Assets Statement 19
Statement of General Long -Term Debt Statement 20
Supplementary Financial Information
Combined Schedule of Indebtedness Exhibit 1
Schedule of Deferred Tax Levies Exhibit 2
Debt Service Payments to Maturity Exhibit 3
Construction Work in Process Exhibit 4
Insurance in Force Exhibit 5
Taxable Valuations, Tax Levies and Tax Rates Exhibit 6
Schedule of Sources and Uses of Funds:
Tax Increment Housing District #1 -1 Exhibit 7
Tax Increment Housing District #1 -2 Exhibit 8
Tax Increment Financing District #1 -3 Exhibit 9
Tax Increment Financing District #1-4 Exhibit 10
Schedule of Revenue, Expenses and Changes in Retained Earnings -
Water and Sewer Fund Exhibit 11
I.
INTRODUCTORY
S ECTION
— CITY OF LINO LAKES, MINNESOTA
ORGANIZATION
December 31, 1991
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Mayor:
Harold Bisel
Council Members:
William Bohjanen
Andy Neal
Vernon Reinert
Sally Kuether
City Administrator.
Randall Schumacher
Clerk- Treasurer.
Marilyn Anderson
Finance Director:
Mary Vaske
City Accountant
Paula Schloer
Term Expires
December 31, 1991
December 31, 1991
December 31, 1991
December 31, 1993
December 31, 1993
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II.
FINANCIAL
SECTION
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
TAUTGES, REDPATH & CO., LTD.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
We have audited the general purpose financial statements of the City of Lino Lakes, Minnesota, and the combining,
individual fund, and account group fmancial statements of the City as of and for the year ended December 31,1991 as
listed in the table of contents. These financial statements are the responsibility of the City's management. Our
responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Governmental Auditing Standards
as issued by the Comptroller General of the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
The City does not maintain complete accounting controls over quantities and costs of General Fixed Assets.
Therefore, we were not able to obtain sufficient evidential matter to form an opinion regarding the amounts at which
property, plant and equipment are recorded in the General Fixed Assets Account Group at December 31,1991 or
1990 (stated at $2,119,597 and $1,992,729 respectively). Accordingly, we do not express an opinion on this
account group.
In our opinion, except for the effects of such adjustments, if any, as might have been determined had we been able to
obtain sufficient evidential matter regarding the City's General Fixed Assets, the general purpose financial statements
referred to above present fairly, in all material respects, the financial position of the City of Lino Lakes, Minnesota,
as of December 31, 1991 and the results of its operations and the Statement of Cash Flows of its Proprietary Fund
types for the year then ended in conformity with generally accepted accounting principles. Also, in our opinion,
except for the effects of such adjustments, if any, as might have been determined had we been able to obtain
sufficient evidential matter regarding the City's General Fixed Assets, the combining, individual fund, and account
group financial statements referred to above present fairly, in all material respects, the financial position of each of
the individual funds and account groups of the City of Lino Lakes, Minnesota as of December 31,1991, and the
results of operations of such funds and the Statement of Cash Flows of individual Proprietary Funds for the year then
ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a
whole, and on the combining, individual fund, and account group financial statements. The accompanying
information listed as supporting exhibits in the table of contents is presented for purposes of additional analysis and
is not a required part of the financial statements of the City of Lino Lakes, Minnesota. Such information, except for
that portion marked "unaudited ", on which we express no opinion, has been subjected to the auditing procedures
_ applied in the audit of the general purpose, combining, individual fund, and account group financial statements and,
in our opinion, is fairly stated in all material respects in relation to the financial statements of each of the respective
individual funds and account groups, taken as a whole.
'J-1/044 /
TAUTGES, REDPATH & CO., LTD.
Certified Public Accountants
March 27, 1992
4810 White Bear Parkway • White Bear Lake. Minnesota 55110 • 612/426 -7000 • FAX /426 -5004
COMBINED
FINANCIAL
STATEMENTS
CITY OF LINO LAKES, MINNESOTA
COMBINED BALANCE SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 1991
Governmental Fund Types
Special Debt Capital
Assets General Revenue Service Project
Cash and investments $1,284,278 $3,289,418 $4,165,759 _
Cash and investments with escrow agent 44 165,184
Assets with deferred compensation plan administrator
Accrued interest receivable -
Accounts receivable 31,921 - 14,088
Deposits receivable 14,939
Due from other governmental units 22,724 - 33,434
Taxes receivable: —
Delinquent 52,593 7,058 13
Due from County 20,518 3,005 5,128
Delinquent tax increment - 67,103
Special assessments receivable 125 2,455,088 1,056,253
Prepaid items 76,450
Inventory - -
Fixed assets (net of accumulated depreciation) - -
Amount available in Debt Service Fund
Amount to be provided for retirement of GLTD
Total Assets $1,503,548 $0 $5,754,613 $5,506,962
Liabilities, equity and other credits
Liabilities:
Cash overdraft $3,115 $192,964
Accounts payable $44,347 142,830 —
Salaries payable 7,612 -
Contracts payable 273,502
Assessments payable on City property
Deposits payable
Due to other governmental units 133,635
Deferred revenue 52,718 2,455,203 1,124,214
Bonds payable
Lease payable
Deferred compensation payable
Total liabilities 238,312 $0 2,458,318 1,733,510
Equity and other credits:
Contributions from property owners
Invested in general fixed assets
Retained earnings
Fund balance (deficit): -
Reserved 76,450 3,221,726
Unreserved: - -
Designated 1,188,786 4,021,159
Undesignated - 74,569 (247,707)
Total equity and other credits 1,265,236 0 3,296,295 3,773,452
Total liabilities, equity and other credits 51,503,548 $0 $5,754,613 $5,506,962
The accompanying notes are an integral part of these financial statements.
-
Statement 1
Fiduciary Totals
Proprietary Fund Type Account Groups (Memorandum Only)
Fund Type Trust and General General Long- December 31,
Enterprise Agency Fixed Assets Term Debt 1991 1990
'- (Unaudited)
$190,613 $8,930,068 $7,659,125
- 165,228 991,494
213,215 213,215 160,942
120,642 120,642 122,321
$100,470 1,759 148,238 113,465
- 117,133 132,072 81,454
14,991 71,149 72,443
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- 59,664 50,963
28,651 30,661
67,103 61,240
- - 3,511,466 3,191,896
2,194 78,644 78,991
5,642 5,642 2,345
5,960,499 $2,119,597 8,080,096 7,909,309
$3,221,726 3,221,726 2,784,745
9,505,740 9,505,740 6,623,531
$6,083,796 $643,362 $2,119,597 $12,727,466 $34,339,344 $29,934,925
$193,687 $176,114 $565,880 $456,244
18,193 15,632 221,002 143,763
833 8,445 7,719
5,090 278,592 310,434
$142,553 142,553 142,553
- 238,401 238,401 79,004
- 17,749 151,384 41,536
- 3,632,135 3,289,367
12,581,500 12,581,500 9,244,000
3,413 3,413 5,723
213,215 213,215 160,942
235,552 643,362 $0 12,727,466 18,036,520 13,881,285
Vow
5,803,635 5,803,635 5,906,860
2,119,597 2,119,597 1,992,729
- 44,609 44,609 53,385
3,298,176 2,855,412
5,209,945 5,504,846
(173,138) (259,592)
5,848,244 0 2,119,597 0 16,302,824 16,053,640
$6,083,796 $643,362 $2,119,597 $12,727,466 $34,339,344 $29,934,925
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES
For The Year Ended December 31, 1991
Statement 2
Revenue:
General property taxes
Tax increments
Special assessments
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Interest on investments
Refunds and reimbursements
Connection and area charges
Miscellaneous
Total revenue
Expenditures:
Current
General government
Public safety
Highways and streets
Parks, recreation and forestry
Solid waste abatement
Cable TV
Capital outlay:
General govemment
Public safety
Highways and streets
Parks, recreation and forestry
Solid waste abatement
Cable TV
Debt service:
Principal
Interest and fiscal charges
Construction/acquisition
Total expenditures
Revenue over (under) expenditures
Other increases (decreases):
Operating transfer in
Operating transfer out
Bond proceeds
Special
General Revenue
$1,179,087
332,392
483,015
195,190
86,603
47,373
42,265
55,609
2,421,534
$0
Debt Capital
Service Project
5182,132 $17
262,825
1,034,209 290,701
45,931 44,736
128,741 363,326
24,329
192,398
77,500
1,391,013 1,255,832
Totals (Memorandum Only)
December 31,
1991 1990
$1,361,236 $1,107,301
262,825
1,324,910
332,392
573,682
195,190
86,603
539,440
66,594
192,398
133,109
5,068379
135,197
1,520,116
254,620
1,458,671
208,981
83,618
531,561
365,175
742,607
92,607
6,500,454
659,490 1,026 68,273 728,789 894,153
845,420 - 845,420 804,363
468,616 468,616 432,813
243,787 243,787 185,780
27,376 27,376 30,444
1,536 1,536 1,497
3,744 889,713 893,457 248,329
80,787 80,787 166,167
15,912 15,912 100,722
12,247 35,654 47,901 62,450
3,745 3,745 2,800
2,678 2,678 1,145
1,011,000 1,011,000 1,948,500
574,149 574,149 532,397
4,269,328 4,269,328 1,502,844
2,268,639 1,026 1,585,149 5,359,667 9,214,481 6,914,404
152,895 (1,026) (194,136) (4,103,835) (4,146,102) (413,9501
10,362 139,272 161,212 310,846 1,065,527
(57,283) (12,862) (188,381) (258,526) (985,162)
291,808 4,036,291 4,328,099 2,390,995
10,362 418,218 4,009,122 4,380,419 2,471,360
Total other increases (decreases) (57,283)
Net increase (decrease) in fund balance 95,612
Fund balance (deficit) - January 1 1,169,624
Residual equity transfer - in
Residual equity transfer - out
Fund balance - December 31
9,336 224,082 (94,713) 234,317 2,057,410
(9,336) 2,839,030 4,101,348 8,100,666 6,043,256
251,460 251,460 9,480
(18,277) (233,183) (251,460) (9,480)
$1,265,236 $0 $3,296,295 $3,773,452 $8,334,983 $8,100,666
The accompanying notes are an integral part of these financial statements.
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CITY OF LINO LAKES, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
For The Year Ended December 31, 1991
Statement 3
Revenue:
General property taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Interest on investments
Gas franchise fees
Refunds and reimbursements
Miscellaneous
Total revenue
Expenditures:
Current
General government
Public safety
Highways and streets
Parks, recreation and forestry
Solid waste abatement
Cable TV
Capital outlay:
General government
Public safety
Highways and streets
Parks, recreation and forestry
Solid waste abatement
Cable TV
Total expenditures
1991
Budget
Actual
$1,188,322 $1,179,087
299,125 332,392
477,739 483,015
85,174 195,190
87,000 86,603
43,555 47,373
14,500 14,910
28,005 42,265
16,200 40,699
2,239,620 2,421,534
624,198
858,087
460,724
245,632
22,000
1,200
9,000
10,500
2,400
2,233,741
Revenue over expenditures 5,879
Other Increases (decreases):
Operating transfer to Debt Service Funds
Total other increases (decreases) 0
Net increase in fund balance $5,879
Fund balance - January 1
Fund balance - December 31
659,490
845,420
468,616
243,787
27,376
1 ,536
3,744
12,247
3,745
2,678
2,268,639
152,895
Over
(Under)
Budget
($9,235)
33,267
5,276
110,016
(397)
3,818
410
14,260
24,499
181,914
1990
Actual
(Memorandum
Only)
$994,399
254,620
629,919
208,981
83,618
63,052
13,052
31,599
15,409
2,294,649
35,292 669,838
(12,667) 804,363
7,892 432,813
(1,845) 185,780
5,376 30,444
336 1,497
(5,256) 18,214
2,283
1,747 5,874
1,345 2,800
2,678 1,145
34,898 2,155,051
147,016 139,598
(57,283) (57,283)
(57,283) (57,283) 0
95,612 $89,733 139,598
1,169,624 1,030,026
$1,265,236 $1,169,624
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENSES AND
CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES
For The Year Ended December 31, 1991
Statement 4
Totals
(Memorandum Only)
1991 1990
Operating revenue:
Water sales $127,754 $99,894
Sewer charges 154,784 119,112
Other operating revenue 33,839 28,100
Total operating revenue 316,377 247,106
Operating expenses:
Personal services 79,127 61,965
Materials and supplies 29,819 21,934
Contractual services 36,680 17,504
Repair and maintenance 28,281 19,206
MWCC sewer charges 81,060 63,655
Depreciation:
Purchased assets 1,190 820
Contributed assets 127,358 72,431
Utilities 7,474 13,335
Other 24,389 10,206
Total operating expenses 415,378 281,056
Net (loss) from operations (99,001) (33,950)
Other income: -.
Interest on investments 623 256
Maintenance agreement - MWCC 14,564 7,233
Total other income 15,187 7,489
Net (loss)
(83,814) (26,461)
Other increases (decreases):
Credit arising from transfer of depreciation
to contributions from property owners 127,358 72,431
Operating transfer to Capital Project Fund (52,320) (80,365)
Total other increases (decreases) 75,038 (7,934)
Net increase (decrease) in retained earnings (8,776) (34,395)
Retained earnings - January 1 53,385 87,780
Retained earnings - December 31 $44,609 _ $53,385
The accompanying notes are an integral part of these financial statements.
VIEW
CITY OF LINO LAKES, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS -
ALL PROPRIETARY FUND TYPES
For The Year Ended December 31, 1991
Statement 5
Totals
(Memorandum Only)
1991 1990
Cash flows from operating activities:
Operating (loss) ($99,001) ($33,950)
Adjustments to reconcile operating (loss) to
net cash flows from operating activities:
Depreciation 128,548 73,251
Change in assets and liabilities:
Decrease (increase) in receivables (27,915) (19,675)
Decrease (increase) in prepaid items 6,130 (6,532)
Decrease (increase) in inventory (3,297) 3,558
Increase (decrease) in payables 19,727 10,949
Net cash flows from operating activities 24,192 27,601
Cash flows from noncapital financing activities:
Maintenance agreement - MWCC 14,564 7,233
Operating transfer to Capital Project Funds (52,320) (80,365)
Net cash flows from noncapital financing activities (37,756) (73,132)
Cash flows from capital and related financing activities:
Purchase of fixed assets (6,044)
Construction in progress (148,336)
Net cash flows from capital and related financing activities (148,336) (6,044)
Cash flows from investing activities:
Interest on investments 623 256
Net increase (decrease) in cash and cash equivalents (161,277) (51,319)
Cash and cash equivalents - January 1 (32,410) 18,909
Cash and cash equivalents - December 31 ($193,687) ($32,410)
Noncash investing, capital and fmancing activities:
- Equipment in the amount of $24,133 was contributed to the Water and Sewer Fund in 1991.
The accompanying notes are an integral part of these financial statements.
Vow
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 1 of 18
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Lino Lakes is a public corporation formed under Minnesota Statute 410. As such the City is under
home rule charter regulations and applicable statutory guidelines.
The financial statements of the City of Lino Lakes have been prepared in conformity with generally accepted
accounting principles as applied to governmental units by the Governmental Accounting Standards Board
(GASB). The following is a summary of the significant accounting policies.
A . FINANCIAL REPORTING ENTITY
In accordance with GASB pronouncements the City's Financial Statements include all funds, account
groups, agencies, boards, commissions and other organizations over which the City Council exercises
oversight responsibility.
Oversight responsibility includes appointment of governing bodies, budget authority, approval of tax
levies, outstanding debt secured by the City's full faith and credit or revenues, and responsibility for
funding deficits.
As a result of applying the entity definition criteria of the Governmental Accounting Standards Board,
Imor certain organizations have been included or excluded from the City's financial statements as follows:
Entity Reason for Inclusion/Exclusion
Included: Lino Lakes Economic The Lino Lakes EDA was established by the
Development Authority (EDA) City Council and is govemed by a board of
commissioners consisting of City Council
members. The EDA is required to submit
a budget for approval of the City Council
annually. The City of Lino Lakes is
responsible for ensuring that the EDA has
adequate funding to carry out its activities.
Upon the request of the EDA, the City may
levy taxes for the benefit of the EDA.
Excluded: Lino Lakes Gas Utility Operated as part of the Circle Pines Gas
Franchise Utility. City of Lino Lakes exercises
minimal management control. City receives
annual share of gross revenue.
Lino Lakes Senior Center
B. FUND ACCOUNTING
Although the Senior program uses a center
funded by the City, the Senior Center has
authority over the activities it finances as
well as responsibility over fiscal matters.
The accounting system of the City is organized and operated on a fund basis. A fund is defined as a
fiscal and accounting entity with a self - balancing set of accounts recording cash and other financial
resources, together with all related liabilities and residual equities or balances, and changes therein,
which are segregated for the purpose of carrying on specific activities or attaining certain objectives in
accordance with special regulations, restrictions or limitations.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 2 of 18
The following types of funds and account groups are employed by the City:
GOVERNMENTAL FUNDS
General Fund - to account for all financial resources except those required to be accounted for
in another fund.
Special Revenue Funds - to account for the proceeds of specific revenue sources that are
legally restricted to expenditures for specified purposes.
Debt Service Funds - to account for the accumulation of resources for, and the payment of,
general long -term debt principal, interest, and related costs.
Capital Project Funds - to account for financial resources to be used for the acquisition or
construction of major facilities other than those financed by Proprietary Funds.
PROPRIETARY FUNDS
Enterprise Funds - to account for operations: (a) that are financed and operated in a manner
similar to private business enterprises - where the intent of the governing body is that the
costs (expenses, including depreciation) of providing goods or services to the general public on
a continuing basis be financed or recovered primarily through user charges; or, (b) where the
governing body has decided that periodic determination of revenues earned, expenses incurred,
and/or net income is appropriate for capital maintenance, public policy, management control,
accountability, or other purposes.
FIDUCIARY FUNDS
Trust and Agency Funds - to account for assets held by a governmental unit in a trustee
capacity or as an agent for individuals, private organizations, other governmental units, and/or
other funds. These include (a) expendable trust funds, (b) nonexpendable trust funds, (c)
pension trust funds, and (d) agency funds.
ACCOUNT GROUPS
The governmental fund types are designed to account for the financial flow of a particular fund;
therefore, they generally include only current assets and current liabilities on their balance
sheets. The City maintains two account groups to account for noncurrent assets and long-
term liabilities as follows:
General Fixed Assets - The City maintains a separate account group which contains the fixed
assets used in the governmental fund type operations. They are assets of the City as a whole
and not of individual funds.
General Long -Term Debt - This account group contains the long -term obligations of the City
including general obligation bonds, certificates of indebtedness, contracts payable and
compensated absences payable. These long -term liabilities are expected to be financed by the
governmental funds.
C . BASIS OF ACCOUNTING
The accounting and reporting treatment applied to a fund is determined by its measurement focus. All
governmental funds are accounted for on a current financial resources measurement focus. This means
that only current assets and current liabilities are generally included on their balance sheets.
Governmental fund operating statements present increases (revenues and other financing sources) and
decreases (expenditures and other financing uses) in net current assets.
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11 MP,
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 3 of 18
All Proprietary Funds are accounted for on a flow of economic resources measurement focus. This
means that all assets and all liabilities (whether current or noncurrent) associated with this activity are
included on their balance sheets. Their reported fund equity (net total assets) is segregated into
contributed capital and retained earnings components. Proprietary fund type operating statements
present increases (revenues) and decreases (expenses) in net total assets.
The modified accrual basis of accounting is followed by the City for its Governmental Funds and
Fiduciary Funds. Under this method of accounting, revenues are recognized when they become
susceptible to accrual - that is, when they become both measurable and available to finance
expenditures of the fiscal period. "Measurable" means the amount of the transaction can be determined
and "available" means collectible within the current period or soon enough thereafter to be used to pay
liabilities of the current period. Major revenue sources susceptible to accrual include property taxes
(excluding delinquent taxes received over 60 days after year end), special assessments, intergovernmental
revenues, charges for services and interest on investments. Major revenue sources not susceptible to
accrual include licenses and permits, fees, and miscellaneous revenues. Such revenues are recorded as
revenue when received because they are not measurable until collected. Expenditures are generally
recognized in the accounting period when the fund liability is incurred, except for interest on general
long -team debt which is recognized when due.
The accrual basis of accounting is followed for the Proprietary Funds. Under this method of
accounting, revenues are recognized during the accounting period in which they are earned and become
measurable and expenses are recognized in the accounting period in which they are incurred if
measurable.
The City reports deferred revenue on its combined balance sheet. Deferred revenues arise when a
potential revenue does not meet both the "measurable" and "available" criteria for recognition in the
current period. Deferred revenues also arise when resources are received by the government before it has
a legal claim to them, as when grant monies are received prior to the incurrence of qualifying
expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the
government has a legal claim to the resources, the liability for deferred revenue is removed from the
combined balance sheet and revenue is recognized.
The City has reported as deferred revenues the amount of $3,632,135, which consists of the following:
Property taxes receivable $59,664
Tax increments receivable 67,103
Special assessments receivable 3,500,968
Park dedication fees 4,400
Total $3,632,135
D. BUDGETS
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual
appropriated budgets are adopted for the General Fund.
Budgeted amounts are reported as originally adopted, or as amended by the City Council. Individual
amendments were not material in relation to the original appropriations which were adjusted. Budgeted
expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed
by the City because it is at present not considered necessary to assure effective budgetary control or to
facilitate effective cash management.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 4 of 18
E. LEGAL COMPLIANCE • BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Administrator submits to the City Council a proposed operating budget for the fiscal
year commencing the following January 1. The operating budget includes proposed
expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can
be expended by each department based upon detailed budget estimates for individual expenditure
accounts.
4. The City Administrator is authorized to transfer appropriations within any department budget.
Additional interdepartmental or interfund appropriations and deletions are or may be authorized
by the City Council with fund (contingency) reserves or additional revenues.
5. Fonnal budgetary integration is employed as a management control device during the year for
the General Fund.
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies
for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to
determine and calculate user charges. These debt service and budget amounts represent general
obligation bond indenture provisions and net income for operation and capital maintenance and
are not reflected in the financial statements.
7. A capital improvement program is reviewed annually by the City Council for the Capital
Projects Funds. However, appropriations for major projects are not adopted until the actual
bid award of the improvement. The appropriations are not reflected in the financial
statements.
8. Expenditures may not legally exceed budgeted appropriations at the total fund level.
Monitoring of budgets is maintained at the expenditure category level (Le., personal services,
supplies; other services and charges; capital outlay) within each activity.
9. The City Council may authorize transfer of budgeted amounts between City funds.
F . CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in
authorized investments. Earnings from investments are allocated to individual funds on the basis of the
fund's equity in the cash and investment pool.
Investments are stated at cost (plus interest added, if any) which approximates market value except for
assets of the Deferred Compensation Plan which are reported at market value. Material purchase
discounts and premiums are amortized over the term of the investment. Interest earnings are accrued at
the balance sheet date.
For purposes of the statement of cash flows the Proprietary Fund considers all highly liquid
investments with a maturity of three months or less when purchased to be cash equivalents. All of the
cash and investments allocated to the proprietary fund types have original maturities of 90 days or less.
Therefore the entire balance in such fund types are considered cash equivalents.
WNW
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 5 of 18
G. HOMESTEAD CREDIT AND AGRICULTURAL CREDIT AID (HACA)
Property taxes on homestead property (as defined by State Statutes) are partially reduced by HACA.
This credit is paid to the City by the State in lieu of taxes levied against homestead property. The
State remits this credit through installments each year. The credit is recognized as revenue by the City
at the time of collection.
H. LOCAL GOVERNMENT AID REVENUE RECOGNITION
Local government aid is provided to the City by the State as a shared tax based upon a statutory
formula and without restrictions. Payment from the State is generally received during each calendar
year for that calendar year. The City recognizes local government aid revenue when it becomes both
measurable and available to finance current operations. In practice, local government aid is recognized
as revenue as it is received in cash.
I. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December
(levy /assessment date) of each year for collection in the following year. The County is responsible for
billing and collecting all property taxes for itself, the City, the local School District and other taxing
authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that
date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar
year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These
taxes are collected by the County and remitted to the City on or before July 7 and December 2 of the
same year. Additionally, delinquent collections for the months of January and February are remitted to
the City each April. Delinquent collections for November and December are received the following
January. The City has no ability to enforce payment of property taxes by property owners. The
County possesses this authority.
The City recognizes property tax revenue when it becomes both measurable and available to finance
expenditures of the current period. In practice, current and delinquent taxes and State credits received by
the City in July, December and January are recognized as revenue for the current year. Taxes collected
by the County by December 31 (remitted to the City the following January) and taxes and credits not
received at the year end are classified as delinquent and due from County taxes receivable. The portion
of delinquent taxes not collected by the City in January are fully offset by deferred revenue because they
are not available to finance current expenditures.
Cities in Minnesota operate under a levy limitation law. A City's levy limit is equal to the prior years
levy limit base (revenue levy plus local govemment aid) increased by 1) three percent; and 2) a
percentage equal to one -half of the greater of the percentage increases in population or in number of
households, if any, and reduced by the local government aid that the City has been certified to receive.
Levies for bonded indebtedness are not limited by the law.
The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal
Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of
the taxable valuation of commercial/industrial real property to various taxing authorities within the
defined metropolitan area. The valuation "shared" is a portion of commercial%industrial property
valuation growth since 1971. Property taxes paid to the City through this formula for 1991 and 1990
totaled $291,783 and $243,968 respectively. Receipt of property taxes from this "fiscal disparities
pool" does not increase or decrease total tax revenue.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 6 of 18
J. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of
special assessment improvement projects in accordance with State Statutes. These assessments are
collectible by the City over a term of years usually consistent with the term of the related bond issue.
Collection of annual installments (including interest) is handled by the County Auditor in the same
manner as property taxes. Property owners are allowed to (and often do) prepay future installments
without interest or prepayment penalties.
Revenue from special assessments is recognized by the City when it becomes measurable and available
to finance expenditures of the current fiscal period. In practice, current and delinquent special
assessments received by the City are recognized as revenue for the current year. Special assessments are
collected by the County and remitted by December 31 (remitted to the City the following January) and
are also recognized as revenue for the current year. All remaining delinquent, deferred and special
deferred assessments receivable in govemmental funding are completely offset by deferred revenues.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that
property until full payment is made or the amount is determined to be excessive by the City Council or
court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit
sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the
City in payment of delinquent special assessments. Generally, the City will collect the full amount of
its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a
property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or
seasonal recreational land in which event the property is subject to such sale after five years.
K. INVENTORIES
Inventories are valued at cost, which approximates market, using the first in/first out (FIFO) method.
The costs of governmental fund type inventories are recorded as expenditures when consumed rather
than when purchased.
L. FIXED ASSETS
GENERAL FIXED ASSETS
General fixed assets are recorded as expenditures of the Governmental Funds at the time of purchase.
Such assets are capitalized at historical cost or estimated historical cost in the General Fixed Asset
Account Group. Public Domain ("infrastructure") general fixed assets consisting of roads, bridges,
curbs, gutters, streets, sidewalks, drainage systems and lighting systems are excluded from general fixed
assets as these assets are immovable and of value only to the City. Gifts or contributions are recorded
in general fixed assets at fair market value at the time received. No depreciation has been provided on
general fixed assets.
The City does not maintain detailed records nor accounting controls over general fixed assets. The
amounts presented in the financial statements represent partial accumulations of historical accounting
records without regard to physical listings.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 7 of 18
PROPRIETARY FUNDS
Fixed assets of the Proprietary Funds are stated at historical cost, estimated historical cost, or in the
case of contributions, at fair market value at the time received. Depreciation has been provided using
the straight -line method over the estimated useful lives of assets, as follows:
Purchased assets:
Water 5 - 25 years
Sewer 5 - 25 years
Contributed assets:
Water 20 - 50 years
Sewer 20 - 50 years
Totals
Fixed assets of the water and sewer utility operations include the water distribution system and sewage
collection system. These systems have been wholly (or substantially) financed by non - operating funds
(special assessments, general taxes, federal and state grants, and other sources) and contributed to the
sewer and water operating funds. City policy is to finance these assets by the sources indicated rather
than by user charges. Accordingly, the water and sewer user rates are not established at levels sufficient
to cover depreciation on these assets.
Depreciation on these assets is shown in the operating statements, however, the depreciation is
eventually transferred against the contribution account rather than retained earnings in accordance with
generally accepted accounting principles. Consequently, the contribution account reflects the net book
value of contributed assets rather than the original cost of such assets.
M. COMPENSATED ABSENCES
The accrued liability for compensated absences is not recorded as a liability in the General Long -Term
Debt Account Group (for governmental funds) nor the Proprietary Funds. Unused vacation, the portion
of sick leave payable as severance pay, and the compensatory time are not considered material to these
financial statements. Unpaid vacation pay totaled $16,147 and $14,346 at December 31, 1991 and
1990 respectively.
The City also has an unrecorded contingent liability for unused employee sick leave of $213,624 and
$181,814 at December 31, 1991 and 1990 respectively.
N. LONG -TERM OBLIGATIONS
Long -term debt is recognized as a liability of a governmental fund when due, or when resources have
been accumulated in the Debt Service Fund for payment early in the following year. For other long-
term obligations, only that portion expected to be financed from expendable available financial
resources is reported as a fund liability of a governmental fund. The remaining portion of such
obligations is reported in the General Long -Term Debt Account Group. Long -term liabilities expected
to be financed from proprietary fund operations are accounted for in those funds.
O. FUND EQUITY
Contributed capital is recorded in Proprietary Funds that have received capital grants or contributions
from developers, customers or other funds. Reserves represent those portions of fund equity not
appropriable for expenditure or legally segregated for a specific future use. Designated fund balances
represent tentative plans for future use of financial resources.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 8 of 18
P. INTERFUND TRANSACTIONS
Quasi - extemal transactions are accounted for as revenues, expenditures or expenses. Transactions that
constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly
applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as
reductions of expenditures/expenses in the fund that is reimbursed.
All other interfund transactions, except quasi - external transactions and reimbursements, are reported as
transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity
transfers. All other interfund transfers are reported as operating transfers.
Q. MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the General Purpose Financial Statements are captioned "Memorandum Only" to
indicate that they are presented only to facilitate financial analysis. Data in these columns do not
present fmancial position, results of operations or changes in financial position in conformity with
generally accepted accounting principles. Neither are such data comparable to a consolidation.
Interfund elimination's have not been made in the aggregation of this data
Note 2 DEPOSITS AND INVESTMENTS
DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by
the City Council, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The
market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds
(140% in the case of mortgage notes pledged).
Authorized collateral includes the legal investments described below, as well as certain first mortgage notes,
and certain other state or local government obligations. Minnesota Statutes require that securities pledged
as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that
furnishing the collateral.
At year -end, the carrying amount of the City's deposits was $6,033,449 and the bank balance was
$6,196,489. Of the bank balance, $6,022,965 was covered by Federal depository insurance or by collateral
held by the City's agent in the City's name, $173,524 was uninsured and uncollateralized.
INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and
whose only investments are in securities described in (a) above.
c) General obligations of the State of Minnesota or any of its municipalities.
d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest
quality, and maturing in 270 days or Less.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 9 of 18
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker - dealers; or, a
bank qualified as a depositor.
Balances at December 31, 1991:
Credit Risk Category Carrying Market
Securities Type 1 2 3 Amount Value
Federal National Mortgage
Association $178,301 $178,301 $152,564
Commercial Paper $598,997 598,997 598,997
Government National
Mortgage Association 129,745 129,745 126,543
Totals $308,046 s 5598,997 $0 907,043 5878,104
Investment pools
Total investments
Deposits
Petty cash
Totals
Cash and investments with escrow agent
1,423,546
2,330,589
6,033,449
150
$8,364,188
$165,228
Assets held by deferred compensation pool administrator $213,215 $213,215
The City's investments are categorized above to give an indication of the level of risk assumed at year-
end. Category 1 includes investments that are insured or registered or for which the securities are held
by the City or its agent in the City's name. Category 2 includes uninsured or unregistered investments
for which the securities are held by the counterparty's trust department or agent in the City's name.
Category 3 includes uninsured and unregistered investments for which the securities are held by the
counterparty or by its trust department or agent but not in the City's name.
Cash and investment with escrow agent consist of undisbursed proceeds of the Public Project Bonds of
1990 which are restricted for the construction and payment of debt associated with the City's fire
station.
Note 3 FIXED ASSETS
A summary of changes in general fixed assets is as follows:
Land
Buildings and structures
Wells
Furniture and equipment
Totals
Balance
1/1/91
$298,943
578,684
6,216
1,108,886
992 729
Additions
$11,067
668
Balance
Deletions 12/31/91
$310,010
579,352
6,216
154,387 $39 254 1,224,019
$39,254 $2,119,597
$166 122
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 10 of 18
A summary of Proprietary Fund fixed assets at December 31, 1991 is as follows:
Water and Gas
Sewer Utility Total
Well $18,500 $18,500
Buildings and Structures 48,690 48,690
Machinery and Equipment 47,535 47,535
Water and Sewer Lines 6,224,189 6,224,189
Acquisition costs - gas utility $2,375 2,375
Construction in progress 148,336 148,336
Total 6,487,250 2,375 6,489,625
Less: Accumulated Depreciation (529,126) (529,126)
Net Fixed Assets $5,958,124 $2,375 $5,960,499
Note 4 CITY INDEBTEDNESS
The following is a schedule of changes in City indebtedness for the year ended December 31,1991.
Balance Balance
1/1/91 Additions Deletions 12/31/91
General Long Term Debt Account Group:
Bonded debt
General obligation $1,630,000 $88,500 $127,500 $1,591,000
Special assessment debt
with governmental commitment 7,614,000 4,260,000 883,500 10,990,500
Contract payable 16,000 16,000 0
Assessment payable 151,130 8,577 142,553
Capital lease payable 5 723 2,310 3 413
Total general long term debt $9,416,853 $4,348,500 $1,037,887 $12,727,466
All long -term bonded indebtedness outstanding at December 31, 1991 are backed by the full faith and credit of
the City, including special assessment bond issues. Delinquent assessments receivable at December 31, 1991
totaled $126,088.
The annual requirement to amortize all debt outstanding at December 31, 1991 including interest payments of
$2,463,667 are as follows:
1992 1993 1994 1995 1996 1997 and on Total
General Obligation Bonds $266,155 $229,886 $225,420 $184,010 $100,700 $1,720,200 $2,726,371
Special Assessment Debt
w/govt'l committment 5,437,616 492,462 4,740,744 1,241,776 199,458 206,740 12,318,796
Total $5,703,771 $722,348 $4,966,164 $1,425,786 $300,158 $1,926,940 $15,045,167
It is not practicable to determine the specific year for payment of long -term accrued compensated absences.
Owe
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 11 of 18
City indebtedness at December 31, 1991 is composed of the following:
General Obligation Bonds:
1989A Equipment Certificates
1989B Equipment Certificates
1990A Equipment Certificates
Public Project Revenue Bonds - 1990A
Total General Obligation Bonds
General Improvement Bonds with special assessments
G. O. Improvement Bonds of 1981
G. O. Improvement Bonds of 1983
G. O. Impovement Bonds of 1984
G. O. Improvement Bonds of 1986
G. O. Improvement Bonds of 1988A
G. O. Temporary Improvement Bonds of 1988B
G. O. Temporary Improvement Bonds of 1989
G. 0. Temporary Improvement Bonds of 19908
G. O. Temporary Improvement Bonds of 1991A
Total General Improvement Bonds with
special assessments pledged
Total - All Bonds
Assessments payable on City property
Capital lease - phone system
Contract for deed
Total Indebtedness
Issue
Date
Final
Maturity Interest
Date Rates
5/1/89
8/1/90
12/10/90
10/1/90
pledged:
12/1/81
10/1 /83
5/1/84
12/1/86
10/1/88
10/1/88
7/1/89
8/1/90
8/1/91
5/89
Original Payable
Issue 12/31/91
5/1/94 7.65
2/1/95 6.65
1/1/96 6.50
2/1/10 7.12
12/1/91 10.64
10/1/93 8.65
11/1/94 6.50
2/1/97 5.43
2/1/97 6.43
10/1/91 6.20
7/1/92 6.10
8/1/93 6.10
8/1/94 5.83
3/93
10 /1/87 7/1/91
14.92
8.00
$300,000 $180,000
275,000 225,000
88,500 71,000
1,115,000 1,115,000
1,778,500 1,591,000
45,000 0
100,000 20,000
35,000 10,500
475,000 90,000
1,160,000 935,000
610,000 0
4,660,000 4,660,000
1,015,000 1,015,000
4,260,000 4,260,000
12,360,000 10,990,500
14,138,500 12,581,500
142,553
9,249 3,413
80,000 0
$14,227,749 $12,727,466
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 12 of 18
Note 5 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness
payable principally from property taxes. The City of Lino Lake's legal debt margin for 1991 and
1990 is computed as follows:
Market value
Applicable percentage
Debt limit
Amount of debt applicable to debt limit
Total bonded debt
Less: Special assessment bonds
Public project revenue bonds
Cash and investments in
debt service funds
Total debt applicable to debt limit
Legal debt margin
Note 6 PENSION PLANS
December 31,
1991 1990
$284,371,300 $264,157,000
2% 2%
5,687,426 5,283,140
12,581,500 9,244,000
10,990,500 7,614,000
1,115,000 1,115,000
61,754 60,764
414,246 454,236
$5,273,180 $4,828,904
A. pUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERM
Plan Description
All full -time and certain part-time employees of the City of Lino Lakes are covered by defined benefit
pension plans administered by the Public Employees Retirement Association of Minnesota (PERA).
PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police
and Fire Fund (PEPFF) which are 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 payroll for employees covered by PERF and PEPFF for the year ended December 31,
1991, was $720,531 and $407,459, respectively; the City's total payroll was $1,213,055.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 13 of 18
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by State Statute, and vest after three years of
credited service. The defined retirement benefits are based on a member's average catary for any five
successive years of allowable service, age, and years of credit at termination of service. Two methods
are used to compute benefits for Coordinated and Basic members. The retiring member receives the
higher of step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under
Method 1, the annuity accrual rate for a Basic member is 2 percent of average salary for each of the first
10 years of service and 23 percent for each remaining year. For a Coordinated member, the annuity
accrual rate is 1 percent of average salary for each of the first 10 years and 1.5 percent for each
remaining year. Using Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic
members and 13 percent for Coordinated members. For PEPFF members, the annuity accrual rate is
23 percent for each year of service. For PERF members whose annuity is calculated using Method 1,
and for all PEPFF members, a full annuity is available when age plus years of service equal 90.
There are different types of annuities available to members upon retirement. A normal annuity is a
lifetime annuity that ceases upon the death of the retiree. No survivor annuity is payable. There are
also various types of joint and survivor annuity options available which will reduce the monthly
normal annuity amount, because the annuity is payable over joint lives. Members may also leave their
contributions in the fund upon termination of public service, in order to qualify for a deferred annuity at
retirement age. Refunds of contributions are available at any time to members who leave public
service, but before retirement benefits begin.
Contributions Required and Contributions Made
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. The City
makes annual contributions to the pension plans equal to the amount required by State Statutes.
According to Minnesota Statutes Chapter 356215, Subd. 4(g), the date of full funding required for the
PERF and the PEPFF is the year 2020. As part of the annual actuarial valuation, PERA's actuary
determines the sufficiency of the statutory contribution rates towards meeting the required full funding
deadline. The actuary compares the actual contribution rate to a "required" contribution rate. Current
combined statutory contribution rates and actuarially required contribution rates for the plans are as
follows:
PERF (Basic and
Coordinated Plans)
PEPFF
Statutory Rates: Required
Employees Employer Rates
4.44% 4.81% 10.04%
8.00% 12.00% 17.56%
Total contributions made by the City during fiscal year 1991 were:
Amount
Percentage of
Covered Payroll
Employees Employer Employees Employer
PERF $27,915 $29,565 4.44% 4.81%
PEPFF 30,903 46,354 8.00% 12.00%
Totals $58,818 $75,919
The City's contribution for the year ended June 30, 1991 to the PERF represented .029 percent of total
contributions required of all participating entities. For the PEPFF, contributions for the year ended
June 30, 1991, represented .175 percent of total contributions required of all participating entities.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 14 of 18
Funding Status and Progress
Pension Benefit Obligation
The "pension benefit obligation" is a standardized disclosure measure of the present value of pension
benefits, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be
payable in the future as a result of employee service to date. The measure, which is the actuarial
present value of credited projected benefits, is intended to help users assess PERA's funding status on a
going -concern basis, assess progress made in accumulating sufficient assets to pay benefits when due,
and make comparisons among Public Employees Retirement Systems and among employers. PERA
does not make separate measurements of assets and pension benefit obligation for individual employers.
The pension benefit obligations as of June 30, 1991, are shown below:
(In thousands) PERF PEPFF
Total pension
benefit obligation $4,458,010 $732,911
Net assets available
for benefits, at cost
(Market Values for
PERF = $3,662,769;
PEPFF = $872,430) 3,524,071 823,125
Unfunded (assets in
excess of) pension
benefit obligation $933,939 ($90,214)
The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30,
1991. Net assets available to pay pension benefits were valued as of June 30, 1991.
Changes in Actuarial Methods and Benefit Provisions,
During the 1991 legislative session, benefit improvements were obtained for survivors of members in
the Basic Plan and the Police and Fire Fund. In the Basic Plan, the maximum family death benefit was
increased from $1,000 per month to 70 percent of the member's average salary. In the Police and Fire
Fund, children's benefits were restored for families of disabled members who had chosen the joint and
survivor annuity option before death. The effect of these changes increased the pension benefit
obligation in the PERF by $4,016,869 and had essentially no effect on the pension benefit obligation
in the PEPFF. These changes had no effect on the employers contribution rate which is set by
Minnesota Statute sections 353.27 subd 3., subd 3a, and 353.65 subd 3.
Ten -Year Historical Trend Information
Ten -year historical trend information is presented in PERA's Comprehensive Annual Financial Report
for the year ended June 30, 1991. This information is useful in assessing the pension plan's
accumulation of sufficient assets to pay pension benefits as they become due.
Related Party Investments
As of June 30, 1991, and for the fiscal year then ended, PERA held no securities issued by the City or
other related parties.
Note 7 METROPOLITAN WASTE CONTROL COMMISSION
During 1971, the Metropolitan Waste Control Commission (MWCC) was organized to provide for
consolidation of the sanitary sewer collection, treatment and disposal in the seven county metropolitan area
surrounding Minneapolis and St. Paul. Previously, these operations were maintained by the city governments
on an individual or collective basis.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 15 of 18
The MWCC bills the City annually based upon estimated volume and budgeted costs. These billings are later
adjusted when actual volume and actual costs are determined. The adjustment to actual is generally determined in
the succeeding calendar year and payable by the City in the second succeeding calendar year. The City follows
the accounting policy of recognizing these charges as an expense of the sewer utility operation in the year for
which they are billed (for estimated billings) and in the year the adjustments are determined (for adjustments
from estimated to actual billings).
Note 8 RECONCILIATION OF CONTRIBUTED CAPITAL
Changes to contributed capital during the year are as follows:
Depreciation
Beginning Capital on Contributed Ending
Balance Contributions Assets Balance
Water and sewer $5,906,860 $24,133 ($127,358) $5,803,635
Note 9 CAPITAL LEASE
The following is a schedule of future minimum lease payments under the capital lease:
Year
Phone
Systems
1992 $3,010
1993 753
Total 3,763
Less amount
representing interest 350
Present value of
minimum lease payments $3,413
Note 10 DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code
Section 457. The deferred compensation plan is offered by the International City Managers Association. The
plan, available to all employees, permits them to defer a portion of their salary until future years. The deferred
compensation is not available to the employees until termination, retirement, death or an unforeseeable
emergency.
All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and
all income attributable to those amounts, property or rights are (until paid or made available to the employee or
other beneficiary) solely the property and rights of the City (without being restricted to the provisions of
benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the
plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred
account for each participant.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 16 of 18
It is the City's opinion that it has no liability for losses under the plan but does have the duty of due care that
would be required of an ordinary prudent investor. The City believes that it is unlikely that it will use the assets
to satisfy the claims of general creditors in the future.
Included in the Trust and Agency Funds on the combined balance sheet is $213,215 of funds recorded at market
value and primarily held by insurance companies in various investment pools for future payment of plan
benefits.
Note 11 SEGMENT INFORMATION
The City maintains one Enterprise Fund which provide water and sanitary sewer services. Segment information
for the year ended December 31, 1991 is as follows:
Total
Water Sewer Water Gas Total
Utility Utility and Sewer Utility 1991 1990
Operating revenue $157,975 $158,402 $316,377 $0 $316,377 $247,106
Depreciation expense 53,189 75,359 128,548 0 128,548 73,251
Operating income (loss) (1,282) (97,670) (98,952) (49) (99,001) (33,950)
Property, plant
and equipment additions 0 24,133 24,133 0 24,133
Net (loss) 0 0 (83,765) (49) (83,814) (26,461)
Operating transfer out 0 0 (52,320) 0 (52,320) (80,365)
Net property, plant
and equipment 0 0 5,958,124 2,375 5,960,499 5,916,580
Net working capital 0 0 (109,831) (2,424) (112,255) 43,665
Total assets 0 0 6,081,421 2,375 6,083,796 6,014,795
Total equity 0 0 5,848,293 (49) 5,848,244 5,960,245
Note 12 TAX INCREMENT DISTRICTS
The City of Lino Lakes is the administrating authority for Economic Development District #1
established under MS 273.71 in 1987. Within the Economic Development District are the following
Tax Increment Financing Districts. As of December 31, 1991 the City has not issued Tax Increment
bonds for any of it's Tax Increment Districts.
Housing District #1 -1 was established under MS 273.73 subd. 11 in 1987. The duration of the district
is 25 years.
Current tax capacity $147,057
Original tax capacity 2,275
Captured tax capacity $144,782
Retained by authority $144,782
Shared with other taxing districts 0
Total $144,782
'— CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 17 of 18
District #1 -2 was established pursuant to MS 469.174, subd. 12 which qualifies it as an Economic
Development TIF district. The duration of the district is eight years from the date of the receipt of the
first increment or ten years from the date of approval of the TIF plan, whichever comes first.
Current tax capacity $107,275
Original tax capacity 6,223
Captured tax capacity $101,052
Retained by authority $101,052
Shared with other taxing districts 0
Total $101,052
District #1 -3 was established pursuant to MS 469.174, subd. 10(a)(2) which qualifies it as a
redevelopment district. The duration of the district is 25 years from the date of the first increments.
Current tax capacity $30,170
Original tax capacity 37,694
District #1-4 was established pursuant to MS 469.174 subd. 12 which qualifies it as an Economic
Development TIF District. The duration of the District is eight years from the date of the receipt of the
first increment or ten years from the date of approval of the TIF Plan, whichever comes fast.
Current tax capacity $18,969
Original tax capacity 54,210
Note 13 DEFICIT FUND BALANCES /RETAINED EARNINGS
The City has deficit fund balances at December 31, 1991 as follows:
Fund
Deficit
Debt Service Funds:
1989A Certificates of Indebtedness $2,031
Capital Project Funds:
Community Development Block Grant 13,958
Surface Water Management 23,182
Interim Construction 183,653
Tax Increment Financing 1 -3 16,535
Tax Increment Financing 1-4 10,379
Enterprise Funds:
Gas Utility
Note 14 CONTINGENCIES
49
The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is
a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City attomey,
remotely recoverable by plaintiffs except pending special assessment appeals.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1991
Page 18 of 18
Note 15 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
General Obligation bond issues sold by the City are financed by ad valorem tax levies and special assessment
bond issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments
levied against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem
tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County
Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject
to cancellation when and if the City has provided alternative sources of financing. The City Council is required
to levy any additional taxes found necessary for full payment of principal and interest.
These future scheduled tax levies are not shown as assets in the accompanying fmancial statements at December
31, 1991 and 1990.
Future scheduled tax levies for all bonds outstanding at December 31, 1991 totaled $2,852,332.
Note 16 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY
At December 31,1991 and 1990 the City had designated and reserved portions of its various fund equities
through legal restriction and City Council authorization. Major fund equity appropriations at December 31,
1991 and 1990 are shown on the various balance sheets as segregation's of the fund equity. A summary of such
designations is as follows:
December 31,
1991 1990
General Fund:
Reserve for prepaid items $76,450 $70,667
Designated for general contingencies 366,492 217,151
Designated for cash flow reserve 822,294 824,523
Designated for Installment Purchase Contract 57,283
Debt Service Funds:
Reserved for debt retirement 3,221,726 2,784,745
Capital Projects Funds:
Designated for capital improvements 3,308,097 3900,882
Designated for committed contracts 349,590 151,732
Designated for equipment acquisition 142,852 164,343
Designated for park improvements 220,620 188,932
Totals $8,508,1.21 _ $8,360,258
Note 17 SHARE IN GAS FRANCHISE PROFITS
The City receives a share of the gross billing for natural gas sales by a neighboring City which provides service
within the City of Lino Lakes. The amount earned for 1991 totaled $19,286. This amount was received in
May of 1992 and will be recorded as revenue (available criteria) in 1992.
Note 18 SUBSEOUENT EVENT
On December 19, 1991 the City approved the issuance of the $135,000 Certificates of Indetedness Series 1991.
The certificates were issued on January 1, 1992.
COMBINING, INDIVIDUAL FUND
AND
ACCOUNT GROUP
FINANCIAL STATEMENTS
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
BALANCE SHEET
December 31, 1991
With Comparative Amounts For December 31, 1990
Statement 6
December 31,
1991 1990
Assets
Cash and investments $1,284,278 $1,102,116
Accounts receivable 31,921 30,807
Deposits receivable 14,939
Due from other governmental units 22,724 24,783
Taxes receivable:
Delinquent 52,593 46,639
Due from County 20,518 20,819
Special assessments receivable:
Tax forfeit 125 125
Prepaid items 76,450 70,667
Total assets $1,503,548 $1,295,956
Liabilities and Fund Balance
Liabilities:
Accounts payable $44,347 $59,437
Salaries payable 7,612 7,102
Customer deposits 1,864
Due to other governmental units 133,635 11,165
Deferred revenue 52,718 46,764
Total liabilities 238,312 126,332
Fund balance:
Reserved 76,450 70,667
Unreserved:
Designated 1,188,786 1,098,957
Total fund balance 1,265,236 1,169,624
Total liabilities and fund balance $1,503,548 $1,295,956
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1991
With Comparative Actual Amounts For The Year Ended December 31, 1990
Statement 7
Page 1 of 5
1991
Over (Under) 1990
Budget Actual Budget Actual
Revenue:
General property taxes:
-- Current and delinquent $935,929 $926,688 ($9,241) $775,635
Fiscal disparities 252,393 252,393 0 218,742
Penalties and interest 6 6 22
- Total general property taxes 1,188,322 1,179,087 (9,235) 994,399
Licenses and permits:
Non - business 282,000 307,724 25,724 235,187
Business 17,125 24,668 7,543 19,433
Total licenses and permits 299,125 332,392 33,267 254,620
Intergovernmental:
..- State:
Local government aid 95,440 95,440 0 163,165
Homestead credit and equalization aid 294,294 294,294 0 369,375
Mobile home homestead credit 3,005 3,005 0 2,822
Police state aid 41,000 43,044 2,044 35,662
Police - other 5,700 7,320 1,620 10,638
MSA maintenance 13,900 13,170 (730) 13,935
Other 0 4,822
County:
Solid waste 24,400 26,742 2,342 29,500
-
Total intergovernmental 477,739 483,015 5,276 629,919
Charges for services:
General government 14,274 17,901 3,627 6,303
City Planner - escrow charges 6,000 30,845 24,845 5,943
Fees retained from collection for
other governments - SAC 1,567 1,567 952
Administrative charge - other funds 59,000 114,640 55,640 69,890
Aerial map charge - other funds 5,000 27,743 22,743 36,793
Public safety 900 2,494 1,594 89,100
Total charges for services 85,174 195,190 110,016 208,981
Fines and forfeits 87,000 86,603 (397) 83,618
Interest on investments 43,555 47,373 3,818 63,052
- Refunds and reimbursements 28,005 42,265 14,260 31,599
Gas franchise fees 14,500 14,910 410 13,052
Miscellaneous:
Sale of property 4,000 7,097 3,097 5,038
Other 12,200 33,602 21,402 10,371
Total miscellaneous 16,200 40,699 24,499 15,409
Total revenue
2,239,620 2,421,534 181,914 2,294,649
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1991
With Comparative Actual Amounts For The Year Ended December 31, 1990
Statement 7 -
Page 2 of 5
1991
Over (Under) 1990
Expenditures: Budget Actual Budget Actual
General government:
Mayor and council:
Current
Personal services $15,040 $15,800 $760 $14,322
Supplies 300 366 66 113
Other services and charges 18,352 19,613 1,261 14,265
Total mayor and council 33,692 35,779 2,087 28,700
Elections:
Current:
Personal services 2,650 2,862 212 5,727
Supplies 500 24 (476) 58
Other services and charges 900 945 45 52
Capital outlay 2,500 (2,500) 5,123
Total elections 6,550 3,831 (2,719) 10,960
Administration:
Current
Personal services 236,397 228,886 (7,511) 219,220
Supplies 13,500 10,618 (2,882) 13,704
Other services and charges 22,590 17,402 (5,188) 19,553
Capital outlay 1,500 (1,500) 4,645
Total administration 273,987 256,906 (17,081) 257,122
Assessing:
Current
Contractual services 25,000 25,269 269 21,966
Consultants:
Current (personal services):
Engineer 22,500 28,026 5,526 31,671
Independent accountants and auditor 18,800 33,562 14,762 28,848
Planning and zoning 7,000 764 (6,236) 29,139
Legal 63,500 85,193 21,693 60,427
Pavement management study 1,000 (1,000) 14,174
Legal printing 13,600 9,087 (4,513) 9,350
Other 21,685 12,706 (8,979) 15,523
Total consultants 148,085 169,338 21,253 189,132
Planning and zoning commission:
Current:
Personal services 1,150 763 (387) 381
Supplies 50 (50) 162
Other services and charges 2,394 1,820 (574) 1,870
Total planning and zoning commission 3,594 2,583 (1,011) 2,413
Charter commission:
Current
Supplies 100 (100)
Other services and charges 250 54 (196)
Total charter commission 350 54 (296) 0
UMW
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1991
With Comparative Actual Amounts For The Year Ended December 31,1990
Statement 7
Page 3 of 5
1991
Over (Under) 1990
General government (continued) Budget Actual Budget Actual
Planner.
Current
Personal services $46,466 $76,091 $29,625 $72,761
Supplies 800 241 (559) 133
Other services and charges 1,050 328 (722) 1,373
Total planner 48,316 76,660 28,344 74,267
General government buildings:
Current
Personal services 16,514 9,301 (7,213) 10,148
Supplies 4,150 8,024 3,874 7,156
Other services and charges 67,960 71,745 3,785 69,623
Capital outlay 5,000 3,744 (1,256) 8,446
Total general government buildings 93,624 92,814 (810) 95,373
Total general government
633,198 663,234 30,036 679,933
Public safety:
Police:
Current
- Personal services 526,717 520,096 (6,621) 483,086
Supplies 31,700 32,997 1,297 43,824
Other services and charges 35,931 33,379 (2,552) 27,783
_. Total police 594,348 586,472 (7,876) 554,693
Fire protection:
Current
Personal services 83 83 (87)
Supplies 890 890 1,360
Contractual services 205,000 202,718 (2,282) 193,742
Other services and charges 2,042 2,042 2,762
Total fire protection 205,000 205,733 733 197,777
Building inspection:
Current
Personal services 47,474 45,922 (1,552) 42,306
Supplies 4,700 1,913 (2,787) 2,681
Other services and charges 3,290 2,193 (1,097) 2,207
Total building inspection 55,464 50,028 (5,436) 47,194
Civil defense:
Current
Personal services 58
Supplies 19
Other services and charges 1,000 1,428 428 535
Total civil defense 1,000 1,428 428 612
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND Statement 7 _
STATEMENT OF REVENUE, EXPENDITURES AND Page 4 of 5
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1991
With Comparative Actual Amounts For The Year Ended December 31, 1990
1991
Over (Under) 1990
Public safety: (continued) Budget Actual Budget Actual
Animal control:
Current
Supplies $125 $87 ($38) $151
Contractual services 2,150 1,672 (478) 3,936
Total animal control 2,275 1,759 (516) 4,087
Total public safety 858,087 845,420 (12,667) 804,363
Highways and streets:
Current
Personal services 244,055 239,861 (4,194) 201,927
Supplies 37,820 61,912 24,092 61,523
Contractual services:
Streets 126,900 107,541 (19,359) 120,753
Signs 9,339 6,115 (3,224) 3,515
Street lighting 16,480 20,510 4,030 14,701
Other services and charges 26,130 32,677 6,547 30,394
Capital outlay 2,283
Total highways and streets 460,724 468,616 7,892 435,096
Recreation:
Current
Personal services 30,369 24,851 (5,518)
Supplies 3,463 4,234 771
Other services and charges 3,747 3,747
Total recreation 33,832 32,832 (1,000) 0
Parks:
Current
Personal services 137,441 148,936 11,495 125,050
Supplies 23,750 23,728 (22) 22,483
Other services and charges 13,794 10,577 (3,217) 11,388
Contractual services 6,000 5,843 (157) 10,237
Capital outlay 5,000 7,585 2,585 5,874
Total parks 185,985 196,669 10,684 175,032
Forestry:
Current
Personal services 25,340 18,863 (6,477) 13,922
Supplies 1,200 1,237 37 1,675
Other services and charges 1,300 83 (1,217) 953
Contractual services 2,975 1,688 (1,287) 72
Capital outlay 5,500 4,662 (838)
Total forestry 36,315 26,533 (9,782) 16,622
Imo
-
Contractual services 9,500 14,087 4,587 10,876
Capital outlay 2,400 3,745 1,345 2,800
Total solid waste abatement 24,400 31,121 6,721 33,244
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1991
With Comparative Actual Amounts For The Year Ended December 31,1990
Statement 7
Page 5 of 5
1991
Over (Under) 1990
Budget Actual Budget Actual
Solid waste abatement:
Current
Personal services $5,300 $6,382 $1,082 $8,037
Supplies 700 5,475 4,775 956
Other services and charges 6,500 1,432 (5,068) 10,575
Cable TV:
Current
Personal services 1,100 1,370 270 1,492
Supplies 100 166 66 5
Capital outlay 2,678 2,678 1,145
Total cable TV 1,200 4,214 3,014 2,642
Miscellaneous:
Current
Other 8,119
Total expenditures 2,233,741 2,268,639 34,898 2,155,051
Revenue over expenditures 5,879 152,895 147,016 139,598
Other increases (decreases):
Operating Transfer to
Debt Service Funds (57,283) (57,283)
Total other increases (decreases) 0 (57,283) (57,283) 0
Net increase in fund balance $5,879 95,612 $89,733 139,598
Fund balance - January 1 1,169,624 1,030,026
Fund balance - December 31 $1,265,236 $1,169,624
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUND
ECONOMIC DEVELOPMENT AUTHORITY
BALANCE SHEET
December 31, 1991
With Comparative Totals For December 31, 1990
Statement 8
Assets
Liabilities and fund balance
December 31,
1991 1990
so so
Liabilities:
Cash overdraft $0 $9,336
Fund balance (deficit):
Unreserved:
Undesignated
Total fund balance (deficit)
Total liabilities and fund balance
0
(9336)
(9336)
$0 so
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUND
ECONOMIC DEVELOPMENT AUTHORITY
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
For The Year Ended December 31, 1991
With Comparative Totals For The Year Ended December 31, 1990
Statement 9
Revenue
1991 1990
$0 $0
Expenditures:
General government:
Current:
Personal services 763 735
Other services and charges 263 8,601
Total expenditures 1,026 9,336
Revenue (under) expenditures
(1,026) (9,336)
Other increases:
Operating transfer from
Debt Service Funds 10,362
Total other increases 10,362 0
Net increase (decrease) in fund balance 9,336 (9,336)
Fund balance (deficit) - January 1 (9,336) 0
Fund balance (deficit) - December 31 $0 ($9,336)
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 1991
Temporary
Improvement Improvement Improvement Improvement Improvement
Closed Bonds Bonds Bonds Bonds of Bonds of
Bond of 1983 of 1984 of 1986 1988 1989
Assets
Cash and investments $76,168 $45,624 $6,731 $162,045 $856,262 $1,521,078
Cash and investments
with escrow agent
Taxes receivable:
Delinquent 287
Due from County 32
Special assessments receivable:
Delinquent 4,676 99,441 9,726
Deferred 28,245 4,290 54,963 289,802 512,757
Special deferred - - 34,475 9,366 537,418
City property 131,752 10,801
Tax forfeit 296 101,088 -
Due from County 400 3,727 1,985
Total assets
Liabilities and Fund Balance
$77,183 $73,869 $11,021 $488,999 $1,269,399 $2,582,964
Liabilities:
Cash overdraft
Deferred revenue $583 $28,245 $4,290 $326,954 $409,410 $1,059,901
Total liabilities 583 28,245 4,290 326,954 409,410 1,059,901
Fund balance (deficit):
Reserved for debt retirement 45,624 6,731 162,045 859,989 1,523,063
Unreserved:
Undesignated 76,600
Total fund balance (deficit) 76,600 45,624 6,731 162,045 859,989 1,523,063
Total liabilities
and fund balance $77,183 $73,869 $11,021 $488,999 $1,269,399 $2,582,964
Maw
Statement 10
Temporary
Improvement
Bonds of
1990B
$272,559
4,407
36,452
17,326
831
$331,575
$58,185
58,185
273,390
273,390
$331,575
Temporary
Improvement
Bonds of
1991A
$240,343
560,864
$801,207
$560,864
560,864
240,343
240,343
$801,207
Public
1989A 1989B 1990 Project
Certificates of Certificates of Certificates of Revenue Bonds
Indebtedness Indebtedness Indebtedness of 1990A
Totals
December 31,
1991 1990
$61,339 $415 $46,854 $3,289,418 $2,823,097
44 44 5,006
$2,675 2,234 600 1,262 7,058 4,290
1,084 894 297 698 3,005
118,250 130,716
1,487,373 1,432,033
598,585 607,065
142,553 142,553
101,384 121,300
6,943 18,012
$3,759 $64,467 $1,312 $48,858 $5,754,613 $5,284,072
$3,115
2,675 $2,234
5,790 2,234
62,233
(2,031)
(2,031) 62,233
$3,759 $64,467
$600
600
$3,115
$1,262 2,455,203
1,262 2,458,318
$7,085
2,437,957
2,445,042
712 47,596 3,221,726 2,784,745
712
74,569 54,285
47,596 3,296,295 2,839,030
$1,312 $48,858 $5,754,613 $5,284,072
- CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 1991
Statement 11
Page 1 of 2
Improvement Improvement Improvement Improvement
Closed Bonds Bonds Bonds Bonds
Bond of 1981 of 1983 of 1984 of 1986
Revenue:
General property taxes:
Current and delinquent $360
Fiscal disparities -
Total general property taxes 360
Intergovernmental:
State:
HACA
Total intergovernmental
Special assessments:
Current and delinquent 5,199 $16,274 $2,002 $17,496
Prepayments
Tax forfeit 19,916
Penalties and interest 2,742
Total special assessments 5,199 $0 16,274 2,002 40,154
• Interest on investments 4,256 774 893 451 8,183
Total revenue 9,815 774 17,167 2,453 48,337
_, Expenditures:
Debt Service:
Principal retirement 5,000 10,000 3,500 , 125,000
Interest 550 2,700 1,243 8,225
- Paying agent fees 838 - - 400
Total expenditures 0 6,388 12,700 4,743 133,625
- Revenue over (under) expenditures 9,815 (5,614) 4,467 (2,290) (85,288)
Other increases (decreases):
Operating transfer from
General Fund
Operating transfer from
Capital Project Funds
Operating transfer to
Capital Project Funds (2,500)
Operating transfer to
- Special Revenue Fund (10,362)
Bond proceeds
Total other increases (decreases) (12,862) 0 0 0 0
Net increase (decrease) in fund balance (3,047) (5,614) 4,467 (2,290) (85,288)
Fund balance (deficit) - January 1 61,370 23,891 14,416 9,021 247,333
Residual equity transfer - in 18,277 26,741
Residual equity transfer - out (18,277)
Fund balance (deficit) - December 31 $76,600 $0 $45,624 $6,731 $162,045
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 1991
Revenue:
General property taxes:
Current and delinquent
Fiscal disparities
Total general property taxes
Intergovernmental:
State:
HACA
Total intergovernmental
Special assessments:
Current and delinquent
Prepayments
Tax forfeit
Penalties and interest
Total special assessments
Interest on investments
Total revenue
Expenditures:
Debt Service:
Principal retirement
Interest
Paying agent fees
Total expenditures
Revenue over (under) expenditures
Other increases (decreases):
Operating transfer from
General Fund
Operating transfer from
Capital Project Funds
Operating transfer to
Capital Project Funds
Operating transfer to
Special Revenue Fund
Bond proceeds
Total other increases (decreases)
Net increase (decrease) in fund balance
Fund balance (deficit) - January 1
Residual equity transfer - in
Residual equity transfer - out
Improvement
Bonds of
1988
Temporary
Improvement
Bonds of
1988
$115,825 $9,620
100,132 43,868
20,790
236,747 53,488
33,673 9,635
270,420 63,123
130,000 610,000
65,392 37,820
724 356
196,116 648,176
74,304 (585,053)
83,451
0 83,451
(501,602)
430,945
70,657
$0
74,304
649,900
135,785
Fund balance (deficit) - December 31 $859,989
Temporary
Improvement
Bonds of
1989
$94,272
403,997
498,269
56,576
554,845
284,260
604
284,864
269,981
81,989
81,989
351,970
1,171,093
Temporary
Improvement
Bonds of
1990B
$15,839
133,409
1,214
150,462
12,467
162,929
61,915
61,915
101,014
0
101,014
172,376
51,523,063 $273,390
-
WNW
Statement 11
Page 2 of 2
Temporary 1989A 1989B
Improvement Certificates Certificates
Bonds of of of
1991A Indebtedness Indebtedness
$14,840
16,774
31,614
622
32,236
250
250
$50,845
13,976
64,821
$41,930
11,525
53,455
1990
Certificates
of
Indebtedness
$14,799
4,143
18,942
16,298 13,439 4,831
16,298 13,439 4,831
780 193
81,119 67,674 23,966
60,000
16,065
76,065
50,000
16,205
66,205
17,500
5,754
23,254
31,986 5,054 1,469 712
208,357
208,357
0
0 0
240,343 5,054 1,469 712
0
(7,085) 60,764 0
$240,343 ($2,031) $62,233 $712
Public
Project
Revenue Bonds
of 1990A
$34,808
9,746
44,554
Totals
1991 1990
$142,742
39,390
182,132
11,363 45,931
11,363 45,931
291,367
698,180
19,916
24,746
1,034,209
238 128,741
56,155 1,391,013
1,011,000
70,835 570,964
13 3,185
70,848 1,585,149
(14,693) (194,136)
57,283
57,283
81,989
(2,500)
(10,362)
291,808
57,283 418,218
$87,634
25,227
112,861
42,598
42,598
267,356
857,981
31,900
1,157,237
133,128
1,445,824
1,948,500
530,128
2,269
2,480,897
(1,035,073)
679,375
(34,041)
840,145
1,485,479
42,590 224,082 450,406
5,006 2,839,030 2,379,144
251,460 9,480
(18,277)
$47,596 $3,296,295 $2,839,030
- CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 1991
Statement 12
Page 1 of 2
Parks Capital Community Area Surface Centennial
and Improvement Development and Unit Water Fire
Playgrounds Projects Block Grant Charge Management Station
Assets
Cash and investments $222,552 $143,088 $1,979,129 -
- Cash and investments with escrow agent - $165,184
Accounts receivable 9,397
Due from other governmental units $3,450
Taxes receivable:
Delinquent 13
Due from County 1
Delinquent tax increment
Special assessments receivable:
Delinquent 6,034 $926
Due from County 2,452 584
▪ Deferred 659,424 77,482
Special deferred 278,014 19,099
Total assets $231,949 $143,102 $3,450 $2,925,053 $98,091 $165,184
Liabilities and
Fund Balance
Liabilities:
Cash overdraft $17,408 $23,766 $19,783
- Accounts payable $6,929 $237 $217 15,163
Contracts payable - 46,166
Due to other governmental units
- Deferred revenue 4,400 13 943,472 97,507
Total liabilities 11,329 250 17,408 943,689 121,273 81,112
Fund balance (deficit):
Unreserved:
Designated:
Committed contracts
Capital improvements - 1,981,364 84,072
Equipment acquisition 142,852
Park improvements 220,620 -
...- Undesignated - (13,958) (23,182)
Total fund balance (deficit) 220,620. 142,852 (13,958) 1,981,364 (23,182) 84,072
Total liabilities and fund balance $231,949 $143,102 $3,450 $2,925,053 $98,091 $165,184
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 1991
Interim MSA SAC 1988B 1989
Construction Construction Sealcoating Revolving Construction Construction
Assets
Cash and investments $25,023 $2,801 $436,863 $21,764 $306,414
Cash and investments with escrow agent
Accounts receivable - 4,691
Due from other governmental units -
Taxes receivable:
Delinquent
Due from County -
Delinquent tax increment
Special assessments receivable:
Delinquent - 878 -
Due from County 519
Deferred 5,902 4,939
Special deferred -
Total assets
Liabilities and
Fund Balance
$0 $32,322 $7,740 $436,863 $21,764 $311,105
Liabilities:
Cash overdraft $105,093
Accounts payable 25,087 $24,404 $826 $7,204
Contracts payable 53,473 13,800
Due to other governmental units - -
Deferred revenue $6,780 $4,939
Total liabilities 183,653 6,780 4,939 24,404 826 21,004
Fund balance (deficit):
Unreserved:
Designated:
Committed contracts 117,271
Capital improvements 25,542 2,801 412,459 20,938 172,830
Equipment acquisition -
Park improvements
Undesignated (183,653)
Total fund balance (deficit) (183,653) 25,542 2,801 412,459 20,938 290,101
Total liabilities and fund balance $0 $32,322 $7,740 $436,863 $21,764 $311,105
Statement 12
Page 2 of 2
Tax Increment Tax Increment Tax Increment Tax Increment Totals
1990 1991 Financing Financing Financing Financing December 31,
Construction Construction 1 -1 1 -2 1 -3 1-4 1991 1990
$77,368 $387,271 $496,600 $66,886
29,984
$4,165,759 $3,712,092
165,184 986,488
14,088 6,070
33,434 36,702
13 61,274
3,793 1,334 5,128 9,842
67,100 3 67,103
7,838 2,269
3,555 1,780
747,747 457,956
297,113 278,087
$107,352 $387,271 $567,493 $68,223 $0 $0 $5,506,962 $5,552,560
- $16,535 $10,379 $192,964 $285,092
$2,872 $59,891 142,830 39,198
27,262 132,801 273,502 294,434
- 0 27,842
$67,100 $3 1,124,214 804,646
30,134 192,692 67,100 3 16,535 10,379 1,733,510 1,451,212
37,740 194,579 349,590 151,732
39,478 - 500,393 68,220 3,308,097 3,900,882
142,852 164,343
220,620 188,932
(16,535) (10,379) (247,707) (304,541)
77,218 194,579 500,393 68,220 (16,535) (10,379) 3,773,452 4,101,348
$107,352 $387,271 $567,493 $68,223 $0 $0 $5,506,962 $5,552,560
▪ CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES 1N FUND BALANCE
▪ For The Year Ended December 31, 1991
sway
Wi
Statement 13
Page 1 of 2
Parks Capital Community Area Surface Centennial
and Improvement Development and Unit Water Fire
Playgrounds Projects Block Grant Charge Management Station
Revenue:
General property taxes:
Current and delinquent 817
Tax increments
Total general property taxes 17
Area and unit charges 8192,398
Intergovernmental:
State:
MSA construction
Correctional Facility
Computer purchase
Federal:
CDBG 810,236 834,500
Total intergovernmental 10,236 34,500
Special assessments:
Current and delinquent 59,011 5,493
Prepayments 169,885 34,518
Total special assessments 228 ,896 40,011
Interest on investments $11 ,518 9,751 91,191 - 854 ,349
Refunds and reimbursements 3,020 - -
Park dedication fees 61,500 -
Donations 16,000
Other -
Total revenue 76,038 25,768 10,236 512,485 74,511 54,349
Expenditures:
General government:
Current
Personal services - 9 ,582 - -
Contactual services 25,671 6,100 5,760 5,662 3,349
Supplies - - - -
Capital outlay:
General government 15,282 874,431
Public safety 80,787 -
Highways and streets - 15,912
Parks, recreation and forestry 11,734 23,920
Construction costs 6,945 - 41,919
Total expenditures 44,350 135,901 15,682 47,679 5,662 877,780
Revenue over (under) expenditures 31,688 (110,133) (5,446) 464,806 68,849 (823,431)
Other increases (decreases):
Operating transfer from Debt Service Funds -
Operating transfer from Capital Project Funds 29,842
Operating transfer from Enterprise Fund 52,320
▪ Operating transfer to Debt Service Funds
Operating transfer to Capital Project Funds
Bonds proceeds 88,642
Total other increases (decreases) 0 88,642 0 82,162 0 0
Net Increase (decrease) in fund balance 31,688 (21,491) (5,446) 546,968 68,849 (823,431)
Fund balance (deficit) - January 1 188,932 164 ,343 (8,512) 1,434,396 (92,031) 907,503
Residual equity transfer
Fund balance (defkk) - December 31 5220,620 8142,852 (813,958) 81,981,364 (823,182) 884,072
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 1991
Interim MSA SAC 1983 1988A 1988B
Construction Construction Sealcoating Revolving Construction Construction Construction
Revenue:
General property taxes:
Current and delinquent
Tax increments
Total general property taxes
Area and unit charges
Intergovernmental:
State:
MSA construction
Correctional Facility
Computer purchase
Federal:
CDBG
Total intergovernmental
Special assessments:
Current and delinquent $1,458 $1,518 -
Prepayments 10,440 7,997 8381
Total special assessments 11,898 9,515 381
Interest on investments 887 - $22,555 81,584 84,252 $8,695
Refunds and reimbursements - 2,420 -
Park dedication fees
Donations
Other
Total revenue 11,898 10,402 2,801 22,555 1,584 4,252 8,695
Expenditures:
General government:
Current
Personal services
Contractual services
Supplies
Capital outlay:
General government
Public safety
Highways and streets
Parks, recreation and forestry
Construction costs 109,670 306 1,758
Total expenditures 109,670 0 0 0 0 306 1,758
Revenue over (under) expenditures
(97,772) 10,402 2,801 22,555 1,584 3,946 6,937
Other increases (decreases):
Operating transfer from Debt Service Funds 2,500
Operating transfer from Capital Project Funds 76 ,550
Operating transfer from Enterprise Fund
Operating transfer to Debt Service Funds
Operating transfer to Capital Project Funds
Bonds proceeds
Total other increases (decreases) 79,050 0 0 0 0 0 0
Net Increase (decrease) in fund balance (18,722) 10,402 2,801 22,555 1,584 3,946 6,937
Fund balance (deficit) - January 1 (164,931) 15,140 0 389,904 25,157 131,839 84,658
Residual equity transfer (26,741) (135,785) (70,657)
Fund balance (deficit) - December 31 (8183,653) 825,542 52,801 8412,459 $0 80 $20.938
Stateme t 13
Page 2 of 2
Tax Increment Tax Increment Tax Increment Tax Increment Totals
1989 1990 1991 Financing Finandng Financing Financing December 31,
Construction Construction Construction 1 -1 1 -2 1 -3 1-4 1991 1990
- - - 817 841
8191,326 571,499 - 262,825 135,197
191 ,326 71,499 262,842 135,238
- - 192,398 742,607
0 555,970
0 221,960
0 4,944
44,736 3,280
44,736 786,154
67,480 83,326
- 223,221 279,553
290,701 362,879
857,221 $9,182 $70,859 20,172 1,110 - - 363,326 335 ,381
818,889 24,329 365,175
61,500 30,180
!' - - 16,000
0 2,367
9,182 70,859 211,498 72,609 18,889 1,255,832 2,759,981
- 9,582 8,773
1,024 1,981 $2,138 7,006 58,691 206,161
- 0 45
• - - 889,713 230,115
80,787 166,167
_ - 15,912 98,439
• - 35,654 56,576
196,153 165,198 3,747,379 - 4,269 ,328 1,502,844
196,153 165,198 3,747,379 1,024 1,981 2,138 7,006 5 ,359,667 2,269,120
(138,932) (156,016) (3,676,520) 210,474 70,628 (2,138) 11,883 (4,103,835) 490,861
2,500 34,041
• - - - - 106,392 271,746
- - - 52,320 80,365
(81,989) - - - - (81,989) (679,375)
(29,842) (76,550) - (106,392) (271,746)
3,947,649 - - 4,036,291 1,550,850
(111,831) 0 3,871,099 0 0 0 0 4,009,122 985,881
(250,763) (156,016) 194,579 210,474 70,628 (2,138) 11,883 (94,713) 1,476,742
540,864 233,234 0 289,919 (2,408) (14,397) (22,262) 4,101 ,348 2,634,086
"' - - (233,183) (9,480)
5290,101 877,218 $194,579 $500,393 868,220 (816,535) ($10,379) 83,773,452 84,101 ,348
CITY OF LINO LAKES, MINNESOTA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
December 31, 1991
Statement 14
Assets
Gas December 31,
Water and Sewer Utility 1991 1990
Current assets:
Cash and cash equivalents $0 $0 $0 $0
Accounts receivable 100,470 100,470 76,588
Due from other governmental units 14,991 14,991 10,958
Prepaid items 2,194 2,194 8,324
Inventory 5,642 5,642 2,345
Total current assets 123,297 0 123,297 98,215
Fixed assets:
Well 18,500 18,500 18,500
Buildings 48,690 48,690 48,690
Equipment 47,535 47,535 23,406
Water and sewer system 6,224,189 6,224,189 6,224,189
Total fixed assets 6,338,914 0 6,338,914 6,314,785
Less: Allowance for depreciation (529,126) (529,126) (400,580)
Subtotal 5,809,788 0 5,809,788 5,914,205
Acquisition costs - gas utility 2,375 2,375 2,375
Construction in progress 148,336 148,336
Net fixed assets 5,958,124 2,375 5,960,499 5,916,580
Total assets $6,081,421 $2,375 $6,083,796 $6,014,795
Liabilities and Fund Equity
Liabilities:
Cash overdraft $191,263 $2,424 $193,687 $32,410
Accounts payable 18,193 18,193 18,994
Salaries payable 833 833 617
Contracts Payable 5,090 5,090
Due to other governmental units 17,749 17,749 2,529
Total liabilities 233,128 2,424 235,552 54,550
Fund equity:
Contributions - net 5,803,635 5,803,635 5,906,860
Retained earnings (deficit) 44,658 (49) 44,609 53,385
Total fund equity 5,848,293 (49) 5,848,244 5,960,245
Total liabilities and fund equity $6,081,421 $2,375 $6,083,796 $6,014,795
- CITY OF LINO LAKES, MINNESOTA
ENTERPRISE FUND
COMBINING STATEMENT OF REVENUE, EXPENSES
- AND CHANGES IN RETAINED EARNINGS
For The Year Ended December 31, 1991
Statement 15
Gas Totals
Water and Sewer Utility 1991 1990
Operating revenue:
Charges for services $282,538 $282,538 $219,006
- Other operating revenue 33,839 33,839 28,100
Total operating revenue 316,377 $0 316,377 247,106
- Operating expenses:
Personal services 79,127 79,127 61,965
Materials and supplies 29,819 29,819 21,934
- Contractual services 36,631 49 36,680 17,504
Repair and maintenance 28,281 28,281 19,206
MWCC sewer charges 81,060 81,060 63,655
- Depreciation:
Purchased assets 1,190 1,190 820
Contributed assets 127,358 127,358 72,431
Utilities 7,474 7,474 13,335
Other 24,389 24,389 10,206
Total operating expenses 415,329 49 415,378 281,056
-
Net (loss) from operations (98,952) (49) (99,001) (33,950)
Other income:
Interest on investments 623 623 256
Maintenance agreement - MWCC 14,564 14,564 7,233
Total other income 15,187 0 15,187 7,489
Net (loss) (83,765) (49) (83,814) (26,461)
Other increases (decreases):
Credit arising from transfer of depreciation
to contributions from property owners 127,358 127,358 72,431
- Operating transfer to Capital Project Funds (52,320) (52,320) (80,365)
Total other increases (decreases) 75,038 0 75,038 (7,934)
- Net increase (decrease) in retained earnings (8,727) (49) (8,776) (34,395)
Retained earnings - January 1 53,385 0 53,385 87,780
Retained earnings (deficit) - December 31 $44,658 ($49) $44,609 $53,385
CITY OF LINO LAKES, MINNESOTA
ENTERPRISE FUND
COMBINING STATEMENT OF CASH FLOWS
For The Year Ended December 31, 1991
Statement 16
Gas Totals
Water and Sewer Utility 1991 1990
Cash flows from operating activities:
Operating (loss) ($98,952) ($49) ($99,001) ($33,950)
Adjustments to reconcile operating (loss) to
net cash flows from operating activities:
Depreciation 128,548 128,548 73,251
Change in assets and liabilities:
Decrease (increase) in receivables (27,915) (27,915) (19,675)
Decrease (increase) in prepaid items 6,130 6,130 (6,532)
Decrease (increase) in inventory (3,297) (3,297) 3,558
Increase (decrease) in payables 22,102 (2,375) 19,727 10,949
Net cash flows from operating activities 26,616 (2,424) 24,192 27,601
Cash flows from
noncapital financing activities:
Maintenance agreement - MWCC
Operating transfer to Capital Project Funds
Net cash flows from
noncapital financing activities
14,564
(52,320)
(37,756)
14,564 7,233
(52,320) (80,365)
0 (37,756) (73,132)
Cash flows from capital
and related financing activities:
Purchase of fixed assets 0 (6,044)
Construction in progress (148,336) (148,336)
Net cash flows from
capital and related financing activities (148,336) 0 (148,336) (6,044)
Cash flows from investing activities:
Interest on investments 623 623 256
Net increase (decrease) in cash and cash equivalents (158,853) (2,424) (161,277) (51,319)
Cash and cash equivalents - January 1 (32,410) 0 (32,410) 18,909
Cash and cash equivalents - December 31 ($191,263) ($2,424) ($193,687) ($32,410)
Non cash investing,
capital and financing activities:
- Equipment in the amount of $24,133 was
contributed to the Water and Sewer Fund in 1991.
glimw
CITY OF LINO LAKES, MINNESOTA
AGENCY FUNDS
COMBINING BALANCE SHEET
December 31, 1991
Statement 17
Pending Totals
Contractors Assessment Investment Deferred December 31,
Deposits Deposits Fund Compensation 1991 1990
Assets
- Cash and investments $190,613 $190,613 $21,820
Assets with deferred
compensation plan administrator $213,215 213,215 160,942
.. Accrued interest on investments $120,642 120,642 122,321
Accounts receivable $1,759 1,759
Due from developers 117,133 117,133 81,454
Total assets $118,892 $190,613 $120,642 $213,215 $643,362 $386,537
Liabilities
Cash overdraft $55,472 $120,642 $176,114 $122,321
Accounts payable 15,632 15,632 26,134
Due to developers 47,788 $190,613 238,401 77,140
Deferred compensation payable $213,215 213,215 160,942
-
Total liabilities $118,892 $190,613 $120,642 $213,215 $643,362 $386,537
CITY OF LINO LAKES, MINNESOTA
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For The Year Ended December 31, 1991
Statement 18
Balance Balance
January 1, December 31,
1991 Additions Deletions 1991
Contractors deposits:
Assets
Cash and investments $21,820 $88,345 $110,165
Accounts receivable 1,759 $1,759
Due from developers 81,454 61,444 25,765 117,133
Total assets $103,274 $151,548 $135,930 $118,892
Liabilities
Cash Overdraft
Accounts payable
Due to developers
Total liabilities
$110,165 $54,693 $55,472
$26,134 31,264 41,766 15,632
77,140 172,915 202,267 47,788
$103,274 $314,344 $298,726 $118,892
Pending Assessment Deposits:
Assets
Cash and investments $0 $190,613 $0 $190,613
Liabilities
Due to developers $0 $190,613 $0 $190,613
Investment Fund:
Assets
Accrued interest on investments $122,321 $120,642 $122,321 $120,642
Liabilities
Cash overdraft $122,321 $120,642 $122,321 $120,642
Deferred Compensation:
Assets
Assets with plan administrator $160,942 $52,273 $0 $213,215
Liabilities
Deferred compensation payable $160,942 $52,273 $0 $213,215
Totals -Ail Trust and Agency Funds:
Assets
Cash and investments $21,820 $278,958 $110,165 $190,613
Assets with plan administrator 160,942 52,273 213,215
Accrued interest on investments 122,321 120,642 122,321 120,642
Accounts receivable 1,759 1,759
Due from developers 81,454 61,444 25,765 117,133
Total assets $386,537 $515,076 $258,251 $643,362
Liabilities
Cash overdraft $122,321 $230,807 $177,014 $176,114
Accounts payable 26,134 31,264 41,766 15,632
Due to developers 77,140 363,528 202,267 238,401
Deferred compensation payable 160,942 52,273 213,215
Total liabilities $386,537 $677,872 $421,047 $643,362
— CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF GENERAL FIXED ASSETS
For the Year Ended December 31, 1991
— (Unaudited)
Statement 19
Balance Balance
— January 1, December 31,
1991 Additions Deletions 1991
- Land $298,943 $11,067 $310,010
Welts 6,216 6,216
Buildings and improvements 578,684 668 579,352
Furniture and equipment 1,108,886 154,387 $39,254 1,224,019
Totals $1,992,729 $166,122 $39,254 $2,119,597
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF GENERAL LONG - TERM DEBT
December 31, 1991
Statement 20
Amount Available And To Be Provided For The
Retirement of Long -Term Debt:
Amount available in Debt Service Fund
Amount to be provided- future tax levies/ assessments /tax increment collections
Total available and to be provided
General Long -Term Debt Payable:
December 31,
1991 1990
$3,221,726 $2,784,745
9,505,740 6,623,531
$12,727,466 $9,408,276
Bonds payable:
General Obligation Bonds:
1989A Equipment Certificates $180,000 $240,000
1989B Equipment Certificates 225,000 275,000
1990A Equipment Certificates 71,000
Public Project Revenue Bonds - 1990A 1,115,000 1,115,000
Total General Obligation Bonds 1,591,000 1,630,000
General Obligation Bonds with special assessments pledged:
G. O. Improvement Bonds of 1981 0 5,000
G. O. Improvement Bonds of 1983 20,000 30,000
G. O. Improvement Bonds of 1984 10,500 14,000
G. O. Improvement Bonds of 1986 90,000 215,000
G. O. Improvement Bonds of 1988A 935,000 1,065,000
G. O. Temporary Improvement Bonds of 1988B 0 610,000
G. O. Temporary Improvement Bonds of 1989 4,660,000 4,660,000
G. O. Temporary Improvement Bonds of 1990B 1,015,000 1,015,000
G. O. Improvement Bonds of 1991A 4,260,000
Total General Obligation Bonds with special assessments pledged 10,990,500 7,614,000
Total Bonds Payable 12,581,500 9,244,000
Assessments payable on City property 142,553 142,553
Contract for deed 0 16,000
Capital lease - phone system 3,413 5,723
Total general long -term debt $12,727,466 $9,408,276
SUPPLEMENTARY
FINANCIAL
INFORMATION
CITY OF LINO LAKES, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 1991
Interest
Rates
Dated
Final
Maturity
Date
General Obligation Bonds:
1989A Equipment Certificates 7.65 5/1/89 5/1/'94
1989B Equipment Certificates - 6.65 8/1/90 2/1/'95
1990A Equipment Certificates 6.50 12/10/90 1/1/96
Public Project Revenue Bonds - 1990A 7.12 10/1/90 2/1/10
Total General Obligation Bonds
General Improvement Bonds with special assessments pledged:
G. O. Improvement Bonds of 1981 10.64 12/1/81 12/1/91
G. O. Improvement Bonds of 1983 8.65 1001/83 10/1/93
G. O. Improvement Bonds of 1984 6.50 5/1/84 11/1/94
G. O. Improvement Bonds of 1986 5.43 12/1/86 2/1/97
G. O. Improvement Bonds of 1988A 6.43 10/1/88 2/1/97
G. O. Temporary Improvement Bonds of 1988B 6.20 10/1/88 10/1/91
G. O. Temporary Improvement Bonds of 1989 6.10 7/1/89 7/1/92
G. O. Temporary Improvement Bonds of 1990B 6.10 8/1/90 8/1/93
G. O. Temporary Improvement Bonds of 1991A 5.83 8/1/90 8/1/94
Total General Improvement Bonds with special assessments pledged
Total - all bonds
Capital lease - phone system
Contract for deed
Total indebtedness
14.92 5/89 3/93
8.00 10/1/87 7/1/91
Exhibit 1
Prior Years Principal Interest
Original Payable 1991 Payable Due Due
Issue Payments 1/1/91 Issued Payments 12/31/91 In 1992 In 1992
$300,000 $60,000 $240,000 $60,000 $180,000 $60,000 $11,475
275,000 275,000 50,000 225,000 50,000 13,055
- 0 $88,500 17,500 71,000 17,500 5,203
1,115,000 1,115,000 1,115,000 77,275
1,690,000 60,000 1,630,000 88,500 127,500 1,591,000 127,500 107,008
45,000 40,000 5,000 5,000 0
100,000 70,000 30,000 10,000 20,000 10,000 1,800
35,000 21,000 14,000 3,500 10,500 3,500 945
475,000 260,000 215,000 125,000 90,000 15,000 4,710
1,160,000 95,000 1,065,000 130,000 935,000 135,000 57,143
-
610,000 610,000 610,000 0
4,660,000 4,660,000 4,660,000 4,660,000 142,130
1,015,000 1,015,000 1,015,000 61,915
0 4,260,000 4,260,000 238,560
8,100,000 486,000 7,614,000 4,260,000 883,500 10,990,500 4,823,500 507,203
9,790,000 546,000 9,244,000 4,348,500 1,011,000 12,581,500 4,951,000 614,211
9,249 3,526 5,723 2,310 3,413 2,679 331
80,000 64,000 16,000 16,000 0
$9,879,249 $613,526 $9,265,723 $4,348,500 $1,029,310 $12,584,913 $4,953,679 $614,542
-- CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 1991
■
Imam
Exhibit 2
Public
Project G. O.
Year of Equipment Equipment Revenue Equipment Equipment Improvement
Levy/ Certificates Certificates Bonds Certificates Certificates Bonds
Collection of 1989A of 1989B of 1990A of 1990 of 1991 * of 1986A Total
1991/1992 $77,458 $69,791 $81,139 $23,260 $56,464 $308,112
1992/1993 72,639 71,316 81,139 22,084 50,440 $839 298,457
- 1993/1994 67,819 67,190 107,389 20,889 49,801 313,088
1994/1995 105,735 20,726 126,461
1995/1996 104,055 104,055
1996/1997 118,112 118,112
1997/1998 125,882 125,882
1998/1999 122,417 122,417
1999/2000 145,150 145,150
'" 2000/2001 139,834 139,834
2001/2002 134,479 134,479
2002/2003 129,045 129,045
- 2003/2004 149,783 149,783
2004/2005 142,433 142,433
2005/2006 134,978 134,978
2006/2007 127,523 127,523
2007/2008 120,015 120,015
2008/2009 112,508 112,508
$217,916 $208,297 $2,181,616 $86,959 $156,705 $839 $2,852,332
- * These certificates were authorized but not issued at December 31, 1991.
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
December 31, 1991
G. O. G. O.
Equipment Equipment Equipment Improvement Improvement
Cetificates Cetificates Cetificates Bonds Bonds
of 1989A of 1989B of 1990A of 1983 of 1984
Bonds payable $180,000 $225,000 $71,000 $20,000 $10,500
Future interest payable 20,655 30,699 11,819 2,700 1,908
Totals $200,655 $255,699 $82,819 $22,700 $12,408
Payments to maturity:
1992 $71,475 $63,055 $22,152 $11,800 $4,445
1993 66,885 64,694 21,032 10,900 4,139
1994 62,295 65,955 19,895 3,824
1995 61,995 19,740
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
$200,655 $255,699 $82,819 $22,700 $12,408
Exhibit 3
G. O.
Improvement
Bonds
of 1986
$90,000
15,750
$105,750
$19,710
18,915
18,090
17,235
16,350
15,450
G. O.
Improvement
Bonds
of 1988
$935,000
196,947
$1,131,947
$192,143
193,250
193,572
178,584
183,108
191,290
G. O.
Temporary
Improvement
Bonds
of 1989
$4,660,000
284,260
$4,944,260
$4,944,260
G. 0.
Temporary
Improvement
Bonds
of 1990B
G. O.
Temporary
Improvement
Bonds
of 1991A
$1,015,000
123,831
$1,138,831
$30,958
30,958
30,958
1,045,957
Public
Project
Revenue
Bonds
of 1990A Totals
$4,260,000 $1,115,000 $12,581,500
702,900 1,072,198 2,463,667
$4,962,900 $2,187,198 $15,045,167
$234,300
234,300
4,494,300
$109,473 $5,703,771
77,275 722,348
77,275 4,966,164
102,275 1,425,786
100,700 300,158
99,100 305,840
112,488 112,488
119,887 119,887
116,588 116,588
138,237 138,237
133,175 133,175
128,075 128,075
122,900 122,900
142,650 142,650
135,650 135,650
128,550 128,550
121,450 121,450
114,300 114,300
107,150 107,150
$105,750 $1,131,947 $4,944,260 $1,138,831 $4,962,900 $2,187,198 $15,045,167
CITY OF LINO LAKES, MINNESOTA
CONSTRUCTION WORK IN PROCESS
December 31, 1991
Exhibit 4
Land Expended
Easements Prior
Description Contractor Engineering and Other Total 1991 Years
Fund 550:
80th Street $82,840 $15 ,385 $4,930 $103,155 * $349 $102,806
Ash Street East Extension 16,284 9,809 15,123 41,216 * 17,185 24,031
West Central Sewer and Water Trunk
Phase 2 29,661 1,210 30,871 4,022 26,849
West Shadow Lake Drive 19,310 31 19,341 2,543 16,798
Highway 49 and Lake Drive 66,602 66,602 40,582 26,020
Elmerest Avenue 32,262 32,262 457 31,805
8018 Rondeau Road 5,800 196 5,996 * 5,996 0
Industrial Park 290 1,008 1,298 1,298 0
County Road J 526 526 526 0
Apollo Drive 14,790 14,790 14,790 0
Birch Street Underpass 3,610 3,610 3,610 0
Minnesota Correctional Facility 203,882 32,022 373 236,277 * 18,061 218,216
Otter Bay 538 396 934 251 683
Total Fund 550 308,806 224,805 23,267 556,878 109,670 447,208
Fund 566:
D. Erickson's Phase 2 209,761 35,232 13,801 258,794 * 1,381 257,413
Reshanau Phase 2 168,502 34,245 44,468 247,215 * 377 246,838
Total Fund 566 378,263 69 477 58,269 506,009 1,758 504,251
Fund 567:
West Central Sewer and Water Trunk 1 ,588,603 296,189 100,622 1,985,414 * 43,548 1,941,866
Carlson 608,928 156,893 60,770 826,591 * 3,710 822,881
Sunrise Meadows 685,618 149,251 41,768 876,637 17,030 859,607
Reshanau third addition 166,678 38,298 7,713 212,689 * 1,611 211,078
Reshanau fourth addition 96,000 44,409 5,377 145,786 130,254 15,532
Total Fund 567 3,145,827 685,040 216,250 4,047,117 196,153 3,850,964
Fund 569:
2nd Avenue 600,123 184,657 51,820 836,600 165,198 671,402
Fund 570:
Pine Ridge 434,453 80,173 24,310 538,936 531,397 7,539
Brandywood 578,854 166,244 39,149 784,247 765,307 18,940
Pheasant Hills 390,636 115,175 47,549 553,360 553,360
White Tail Ridge 40,709 16,813 2,915 60,437 44,855 15,582
Wenzel Farms 650,809 125,232 56,010 832,051 832,051
Reshanau Lake Trunk 780,078 212 ,333 64,867 1,057,278 * 1,020,409 36,869
Total Fund 570 2,875,539 715,970 234,800 3,826,309 3,747,379 78,930
Totals $7,308,558 51,879,949 S584,406 $9,772,913 $4,220,158 $5,552,755
* Completed Project
r
arIMMI
— CITY OF LINO LAKES, MINNESOTA
INSURANCE IN FORCE
December 31, 1991
Exhibit 5
Coverage Amount
-- General Liability:
Bodily Injury/Property Damage $600,000
Personal Injury/Police Professional Liability 600,000
-- Fire Legal Liability 50,000
Medical Expense Occurrence Limit 1,000
Medical Expense Aggregate 10,000
Property Damage ($250 Deductible)
Property:
Buildings and Contents 2,947,225
Valuable Papers ($250 Deductible) 50,000
Faithful Performance Blanket Bond 100,000
Builders Risk - Fire Hall 678,375
Storage Tank Liability 100,000
Mobile Equipment ($500 Deductible) 371,950
EDP - Electronic Equipment ($500 Deductible) 66,938
Public Official and Employee Liability ($1,000 Deductible each occurrence) 600,000
Automotive:
Bodily injury and property damage 600 ,000
Comprehensive and Collision ACV
Uninsured motorists 600,000
Miscellaneous equipment 50,000
Workmen's compensation Statutory
Employee Benefit Level 600,000
Umbrella Liability 1,000,000
Crime - Theft Disappearance and Destruction ($250 Deductible) 50,000
CITY OF LINO LAKES, MINNESOTA
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Exhibit 6
Net Net
Tax Capacity Tax Capacity
Values Values
1991/1992 1990/1991
Taxable valuations:
Total $4,648,676 $4,533,879
Fiscal disparities:
Distribution 1,325,296 1,252,536
Contribution (242,230) (246,308)
Less: Captured Tax Increment Value (254,834) (215,224)
Totals $5,476,908 $5,324,883
Net Net
Tax Tax
Certified Capacity Certified Capacity
Levy Rate Levy Rate
Taxes levied:
Revenue $1,557,076 22.391 $1,485,621 22.978
Bond and interest 308,112 4.431 231,852 3.586
Totals $1,865,188 26.822 $1,717,473 26.564
— CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT HOUSING DISTRICT #1 -1
— December 31, 1991
Exhibit 7
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining
— Sources of funds:
Bond proceeds $1,200,000 $1,200,000
Tax increment collections 2,404,254 $271,359 $191,326 1,941,569
— Interest on investments 19,500 20,172 (39,672)
Total sources of funds 3,604,254 290,859 211,498 3,101,897
_. Uses of funds:
Public improvements 974,094 974,094
Administrative 940 1,024 (1,964)
-_ Bonding costs 25,000 25,000
Bond discount 24,000 24,000
Capitalized interest 192,404 192,404
Debt service 2,355,000 2,355,000
Total uses of funds 3,570,498 940 1,024 3,568,534
Funds remaining (deficit) $33,756 $289,919 $210,474 ($466,637)
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT HOUSING DISTRICT #1 -2
December 31, 1991
Exhibit 8
Accounted
Amended for in Current Amount —
Budget Prior Years Year Remaining
Sources of funds:
Bond proceeds $975,000 $975,000
Tax increment collections $5,128 $71,499 (76,627)
Interest on investments 1,110 (1,110)
Total sources of funds 975,000 $5,128 72,609 897,263
Uses of funds:
Public improvements 170,000 170,000
Land acquisition 515,000 515,000
Demolition and site preparation 23,500 23,500
Relocation costs 15,000 15,000
Administrative 31,500 7,536 1,981 21,983
Bond discount 20,000 20,000
Capitalized interest 200,000 200,000
Total uses of funds 975,000 7,536 1,981 965,483
Funds remaining (deficit) $0 ($2,408) $70,628 ($68,220)
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT FINANCING DISTRICT #1 -3
December 31, 1991
Exhibit 9
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining
Sources of funds:
Tax increment collections $259,260
Total sources of funds 259,260
$259,260
$0 $0 259,260
Uses of funds:
Land aquisition 200,000 200,000
Administrative 22,000 14,397 2,138 5,465
Total uses of funds 222,000 14,397 2,138 205,465
Funds remaining (deficit)
$37,260 ($14,397) ($2,138) $53,795
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS Exhibit 10
FOR TAX INCREMENT FINANCING DISTRICT #1-4
December 31, 1991
Sources of funds:
Bond proceeds
Refunds and reimbursements
Total sources of funds
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining
$1,950,000
1,950,000
$1,950,000 _
$18,889 (18,889)
$0 18,889 1,931,111
Uses of funds:
Land acquisition 400,000 400,000
Public improvements 1,050,000 1,050,000
Administrative 100,000 22,262 7,006 70,732
Bond discount 40,000 40,000
Capitalized interest 360,000 360,000
Total uses of funds 1,950,000 22,262 7,006 1,920,732
Funds remaining (deficit) $0 ($22,262) $11,883 $10,379
MIRO
CITY OF LINO LAKES, MINNESOTA
ENTERPRISE FUND
WATER AND SEWER FUND
SCHEDULE OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
For The Year Ended December 31, 1991
Exhibit 11
December 31,
Water Sewer 1991 1990
Operating revenue:
Charges for services $127,754 $154,784 $282,538 $219,006
-
Other operating revenue 30,221 3,618 33,839 28,100
Total operating revenue 157,975 158,402 316,377 247,106
OMNI
Operating expenses:
Personal services 39,346 39,781 79,127 61,965
Materials and supplies 28,997 822 29,819 21,934
Contractual services 10,231 26,400 36,631 17,504
Repair and maintenance 18,452 9,829 28,281 19,206
MWCC sewer charges 81,060 81,060 63,655
Depreciation:
Purchased assets 420 770 1,190 820
Contributed assets 52,769 74,589 127,358 72,431
Utilities 3,550 3,924 7,474 13,335
Other 5,492 18,897 24,389 10,206
Total operating expenses 159,257 256,072 415,329 281,056
Net income (loss) from operations ($1,282) ($97,670) (98,952) (33,950)
-� Other income:
Interest on investments 623 256
Maintenance agreement - MWCC 14,564 7,233
Total other income 15,187 7,489
Net (loss) (83,765) (26,461)
Other increases (decreases):
Credit arising from transfer of depreciation
-• to contributions from property owners 127,358 72,431
Operating transfer to Capital Project Funds (52,320) (80,365)
Total other increases (decreases) 75,038 (7,934)
Net increase (decrease) in retained earnings (8,727) (34,395)
Retained earnings - January 1 53,385 87,780
Retained earnings - December 31 $44,658 $53,385
TAUTGES, REDPATH & CO., LTD.
CERTIFIED PUBLIC ACCOUNTANTS
AUDITOR'S COMMENTS ON COMPLIANCE
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
We have audited the general purpose financial statements of the City of Lino Lakes,
Minnesota, as of and for the year ended December 31, 1991 and have issued our report
thereon dated March 27, 1992.
We conducted our audit in accordance with generally accepted auditing standards;
Government Auditing Standards, issued by the Comptroller General of the United States;
and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government
promulgated by the Legal Compliance Task Force pursuant to Minnesota Statutes Section
6.65. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the general purpose financial statements are free of material
misstatement.
General Purpose Financial Statement5
Compliance with laws, regulations, contracts, and grants applicable to the City of Lino
Lakes, is the responsibility of the City's management. As part of obtaining reasonable
assurance about whether the general purpose financial statements are free of material
misstatement, we performed tests of the City's compliance with certain provisions of laws,
regulations, contracts, and grants. However, our objective was not to provide an opinion
on overall compliance with such provisions.
The results of our tests indicated that, with respect to the items tested, the City of Lino
Lakes complied, in all material respects, with the provisions referred to in the preceding
paragraph. With respect to items not tested, nothing came to our attention that caused us to
believe that the City of Lino Lakes had not complied, in all material respects, with those
provisions.
4810 White Bear Parkway • White Bear Lake, Minnesota 55110 • 612/426-7000 • FAX/426-5004
City of Lino Lakes, Minnesota
Legal Compliance Report, Page 2
FINDING:
CONDITION:
CRITERIA:
Untimely Reporting of Outstanding Obligations to County Auditor
On or before February 1st of each year, the City of Lino Lakes is required to
report to the County auditor the total amount of outstanding obligations as of
December 31st of the preceding year. The City of Lino Lakes filed this report on
February 19, 1991.
Minnesota Statute 471.70 reads as follows:
471.70 REPORTING OF OBLIGATIONS BY CITIES,
TOWNS, SCHOOL DISTRICTS, AND BODIES
CORPORATE AND POLITIC.
For the purposes of this section "municipality" means a city,
however organized; a school district, however organized; a town; or any
other body corporate and politic created under Minnesota law.
An "obligation" as used in this section means an obligation as
defined in chapter 475.
On or before February first each year, it shall be the duty of the
principal accounting officer of each municipality to report to the auditor
of each county in which such municipality is situate, the total amount of
outstanding obligations, and the purpose for which issued as of
December 31 of the preceding year. Such report shall be kept by the
auditor of each county in a suitable record. On March first each year, it
shall be the duty of the auditor of each county to report to the state
auditor of such obligations as reported to the county auditor by the
principal accounting officer of the municipality, together with the
amount and character of all outstanding obligations issued by the
county.
RECOMMENDATION:
We recommend that the City file this report on a timely basis in future years.
City of Lino Lakes, Minnesota
Legal Compliance Report, Page 3
FINDING:
CONDITION:
CRITERIA:
Lack of Endorsement on Claims
The City does not employ a claim system. This is not uncommon for Minnesota
cities. There is a statutory requirement which outlines the disbursing process and
refers to approvals based on a claim system. The City does not have alternate
approval mechanisms which provide reasonable assurances that authorized
amounts are disbursed. The lack of claim procedures as referred to in Minnesota
statutes may be considered noncompliance with statutes.
Minnesota Statute 412.271 reads in part as follows:
412.271 DISBURSEMENTS.
Subd. 3. Endorsement on claims. The clerk shall endorse on
each claim required to be audited by the council the word "disallowed" if
such be the fact, or, "allowed in the sum of $ ," if approved in
whole or in part, specifying in the latter case the items rejected. Each
order shall be so drawn that when signed by the treasurer in an
appropriate space, it becomes a check on the city depository. Such
order -check may have printed on its reverse side, above the space for
endorsement thereof by the payee, the following statement: "The
undersigned payee, in endorsing this order - check, declares that the same
is received in payment of a just and correct claim against the city of
, and that no part of such claim has heretofore been paid." When
endorsed by the payee named in the order - check, such statement shall
operate and shall be deemed sufficient as the required declaration of the
claim. Any order presented to the treasurer and not paid for want of
funds shall be so marked and paid in the order of its presentation with
interest from the date of presentation at the rate of five percent or such
lower rate as is fixed by the council prior to its issuance.
RECOMMENDATION:
Our office has requested clarification of this issue from the Office of the State
Auditor regarding the applicability of the MS 412.271. Pending the result of this
request, we will advise the City of required corrective actions (if any). The 1988
Minnesota State legislative session had proposed legislation (as an add on
provision) to amend the preceding statute. The add on provision, however, was
eliminated and may be considered in future sessions.
City of Lino Lakes, Minnesota
Legal Compliance Report, Page 4
FINDING:
CONDITION:
CRITERIA:
Deficiencies in Collateral for Deposits
At July 31, 1991 and December 31, 1991, the amount of collateral required on
City deposits was $972,748 and $1,393,524, respectively. The market value of
collateral provided on July 31, 1991 was $900,000, resulting in a deficiency of
$72,748. The market value of collateral provided on December 31, 1991 was
$1,220,000, resulting in a deficiency of $173,524.
Minnesota Statute 118 provides certain specific collateral requirements for
deposits as follows:
118.01 DEPOSITORY BONDS AND COLLATERAL.
Subdivision. 1. Any bank, trust company or thrift institution
authorized to do business in this state may, in lieu of the corporate or
personal surety bond required to be furnished to secure deposited funds,
deposit with the custodian of the funds as collateral security, notes
secured by first mortgages of future maturity, upon which interest is not
past due, on improved real estate free from delinquent taxes, within the
county wherein the depository is located, or within counties immediately
adjoining the county in the State of Minnesota, the obligations which are
legally authorized investments for debt service funds under section
475.66, subdivision 3, and qualified state or local government
obligations acceptable to the treasurer or chief financial officer.
Qualified obligations must be general obligations rated "N' or better by
Moody's Investors Service, Inc. or Standard & Poor's Corporation.
Subd. 2. Except for notes secured by first mortgages of future
maturity, the total in amount of the collateral computed at its market
value shall be at least ten percent more than the amount on deposit at the
close of the business day, in excess of any insured portion, which
would be permitted if a corporate or personal surety bond were
furnished. The total amount of collateral consisting of notes secured by
first mortgages of future maturity computed at its market value shall be
at least 40 percent more than the amount on deposit at the close of the
business day, in excess of any insured portion, which would be
permitted if a corporate or personal surety bond were furnished. The
depository may furnish both a bond and collateral aggregating the
required amount.
RECOMMENDATION:
The City has amended collateral procedures in 1992. We recommend that the
City continue efforts to improve the collateral system and maintain compliance
with MS 118.
City of Lino Lakes, Minnesota
Legal Compliance Report, Page 5
Further, for the items not tested, based on our audit and the procedures referred to above, nothing
came to our attention to indicate that the City of Lino Lakes, Minnesota had not complied with such
legal provisions.
This report is intended solely for the use of the City of Lino Lakes, Minnesota and should not be
used for any other purpose. This restriction is not intended to limit the distribution of this report
which is a matter of public record.
Respectfully submitted,
44,-.160; A.ciaz Is
TAUTGES, REDPATH & CO., LTD.
Certified Public Accountants
March 27, 1992
TAUTGES, REDPATH & CO., LTD.
CERTIFIED PUBLIC ACCOUNTANTS
AUDITOR'S COMMENTS ON COMPLIANCE
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
We have audited the general purpose financial statements of the City of Lino Lakes,
Minnesota, as of and for the year ended December 31, 1991 and have issued our report
thereon dated March 27, 1992.
We conducted our audit in accordance with generally accepted auditing standards;
Government Auditing Standards, issued by the Comptroller General of the United States;
and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government
promulgated by the Legal Compliance Task Force pursuant to Minnesota Statutes Section
6.65. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the general purpose financial statements are free of material
misstatement.
General Purpose Financial Statements
Compliance with laws, regulations, contracts, and grants applicable to the City of Lino
Lakes, is the responsibility of the City's management. As part of obtaining reasonable
assurance about whether the general purpose financial statements are free of material
misstatement, we performed tests of the City's compliance with certain provisions of laws,
regulations, contracts, and grants. However, our objective was not to provide an opinion
on overall compliance with such provisions.
The results of our tests indicated that, with respect to the items tested, the City of Lino
Lakes complied, in all material respects, with the provisions referred to in the preceding
paragraph. With respect to items not tested, nothing came to our attention that caused us to
believe that the City of Lino Lakes had not complied, in all material respects, with those
provisions.
4810 White Bear Parkway • White Bear Lake. Minnesota 55110 • 612/426 -7000 • FAX /426 -5004
City of Lino Lakes, Minnesota
Legal Compliance Report, Page 2
FINDING:
CONDITION:
CRITERIA:
Untimely Reporting of Outstanding Obligations to County Auditor
On or before February 1st of each year, the City of Lino Lakes is required to
report to the County auditor the total amount of outstanding obligations as of
December 31st of the preceding year. The City of Lino Lakes filed this report on
February 19, 1991.
Minnesota Statute 471.70 reads as follows:
471.70 REPORTING OF OBLIGATIONS BY CITIES,
TOWNS, SCHOOL DISTRICTS, AND BODIES
CORPORATE AND POLITIC.
For the purposes of this section "municipality" means a city,
however organized; a school district, however organized; a town; or any
other body corporate and politic created under Minnesota law.
An "obligation" as used in this section means an obligation as
defined in chapter 475.
On or before February first each year, it shall be the duty of the
principal accounting officer of each municipality to report to the auditor
of each county in which such municipality is situate, the total amount of
outstanding obligations, and the purpose for which issued as of
December 31 of the preceding year. Such report shall be kept by the
auditor of each county in a suitable record. On March first each year, it
shall be the duty of the auditor of each county to report to the state
auditor of such obligations as reported to the county auditor by the
principal accounting officer of the municipality, together with the
amount and character of all outstanding obligations issued by the
county.
RECOMMENDATION:
We recommend that the City file this report on a timely basis in future years.
City of Lino Lakes, Minnesota
Legal Compliance Report, Page 3
FINDING:
CONDITION:
CRITERIA:
Lack of Endorsement on Cl.. s
The City does not employ a claim system. This is not uncommon for Minnesota
cities. There is a statutory requirement which outlines the disbursing process and
refers to approvals based on a claim system. The City does not have alternate
approval mechanisms which provide reasonable assurances that authorized
amounts are disbursed. The lack of claim procedures as referred to in Minnesota
statutes may be considered noncompliance with statutes.
Minnesota Statute 412.271 reads in part as follows:
412.271 DISBURSEMENTS.
Subd. 3. Endorsement on claims. The clerk shall endorse on
each claim required to be audited by the council the word "disallowed" if
such be the fact, or, "allowed in the sum of $ ," if approved in
whole or in part, specifying in the latter case the items rejected. Each
order shall be so drawn that when signed by the treasurer in an
appropriate space, it becomes a check on the city depository. Such
order -check may have printed on its reverse side, above the space for
endorsement thereof by the payee, the following statement: "The
undersigned payee, in endorsing this order - check, declares that the same
is received in payment of a just and correct claim against the city of
, and that no part of such claim has heretofore been paid." When
endorsed by the payee named in the order - check, such statement shall
operate and shall be deemed sufficient as the required declaration of the
claim. Any order presented to the treasurer and not paid for want of
funds shall be so marked and paid in the order of its presentation with
interest from the date of presentation at the rate of five percent or such
lower rate as is fixed by the council prior to its issuance.
RECOMMENDATION:
Our office has requested clarification of this issue from the Office of the State
Auditor regarding the applicability of the MS 412.271. Pending the result of this
request, we will advise the City of required corrective actions (if any). The 1988
Minnesota State legislative session had proposed legislation (as an add on
provision) to amend the preceding statute. The add on provision, however, was
eliminated and may be considered in future sessions.
City of Lino Lakes, Minnesota
Legal Compliance Report, Page 4
FINDING:
CONDITION:
CRITERIA:
Deficiencies in Collateral for Deposits
At July 31, 1991 and December 31, 1991, the amount of collateral required on
City deposits was $972,748 and $1,393,524, respectively. The market value of
collateral provided on July 31, 1991 was $900,000, resulting in a deficiency of
$72,748. The market value of collateral provided on December 31, 1991 was
$1,220,000, resulting in a deficiency of $173,524.
Minnesota Statute 118 provides certain specific collateral requirements for
deposits as follows:
118.01 DEPOSITORY BONDS AND COLLATERAL.
Subdivision. 1. Any bank, trust company or thrift institution
authorized to do business in this state may, in lieu of the corporate or
personal surety bond required to be furnished to secure deposited funds,
deposit with the custodian of the funds as collateral security, notes
secured by first mortgages of future maturity, upon which interest is not
past due, on improved real estate free from delinquent taxes, within the
county wherein the depository is located, or within counties immediately
adjoining the county in the State of Minnesota, the obligations which are
legally authorized investments for debt service funds under section
475.66, subdivision 3, and qualified state or local government
obligations acceptable to the treasurer or chief financial officer.
Qualified obligations must be general obligations rated "A" or better by
Moody's Investors Service, Inc. or Standard & Poor's Corporation.
Subd. 2. Except for notes secured by first mortgages of future
maturity, the total in amount of the collateral computed at its market
value shall be at least ten percent more than the amount on deposit at the
close of the business day, in excess of any insured portion, which
would be permitted if a corporate or personal surety bond were
furnished. The total amount of collateral consisting of notes secured by
first mortgages of future maturity computed at its market value shall be
at least 40 percent more than the amount on deposit at the close of the
business day, in excess of any insured portion, which would be
permitted if a corporate or personal surety bond were furnished. The
depository may furnish both a bond and collateral aggregating the
required amount.
RECOMMENDATION:
The City has amended collateral procedures in 1992. We recommend that the
City continue efforts to improve the collateral system and maintain compliance
with MS 118.
City of Lino Lakes, Minnesota
Legal Compliance Report, Page 5
Further, for the items not tested, based on our audit and the procedures referred to above, nothing
came to our attention to indicate that the City of Lino Lakes, Minnesota had not complied with such
legal provisions.
This report is intended solely for the use of the City of Lino Lakes, Minnesota and should not be
used for any other purpose. This restriction is not intended to limit the distribution of this report
which is a matter of public record.
Respectfully submitted,
Ti.46; IS
TAUTGES, REDPATH & CO., LTD.
Certified Public Accountants
March 27, 1992