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Home My WebLink AboutAnnual Financial Report 12/31/1993CITY OF LINO LAKES, MINNESOTA ANNUAL FINANCIAL REPORT DECEMBER 31, 1993 CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS I. INTRODUCTORY SECTION — Organization Organization Chart II. FINANCIAL SECTION — Independent Auditor's Report General Purpose Financial Statements Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenue, Expenditures and Changes in Fund Balance - All Governmental Fund Types Combined Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund Combined Statement of Revenue, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Combined Statement of Cash Flows - All Proprietary Fund Types Notes to Financial Statements Combining. Individual Fund and Account Group Financial Statements Statement 1 Statement 2 Statement 3 Statement 4 Statement 5 — General Fund: Balance Sheet Statement 6 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Statement 7 Special Revenue Funds: Combining Balance Sheet Statement 8 Combining 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 Schedule of General Fixed Assets Statement 19 Schedule of General Long-Tenn 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 I. INTRODUCTORY SECTION CITY OF LINO LAKES, MINNESOTA ORGANIZATION December 31, 1993 — Term Expires Mayor: Vernon Reinert December 31, 1995 Council Members: Andy Neal December 31, 1995 — John Bergeson December 31, 1997 Linda Elliot December 31, 1995 Sally Kuether December 31, 1997 City Administrator: Randall Schumacher Appointed Finance Director. Mary Vaske Appointed City Accountant Paula Schloer Appointed Clerk- Treasurer: Marilyn Anderson Appointed O U c E Q Commissions E • 0 0 • p a_ •.- 0 aV ii" o • g cc c 0 • � r` E • • S a E Ir 0 a c E8 g a0 co m S0 v U m 0 c E W CA c C • t• sti C a W rU � c cc • 1 • E r a Of 0 cc d CC O a a Z E • cc on a. 0 0 LL 0 c — 2 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 accompanying general purpose financial statements of the City of Lino Lakes, Minnesota, as of December 31,1993 and for the year then ended as listed in the table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. Except as discussed in the following paragraph, 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 general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall fmancial 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 foam an opinion regarding the amounts at which property, plant and equipment are recorded in the General Fixed Assets Account Group at December 31,1993 or 1992 (stated at $2,630,549 and $2,344,451 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 deterfnined 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, 1993 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. Our audit was made for the purpose of forming an opinion on the general purpose fmancial statements taken as a whole. The combining, individual fund and account group financial statements and supplementary financial information in the table of contents is presented for purposes of additional analysis and is not a required part of the general purpose 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 fmancial statements and, in our opinion, the information is fairly stated in all material respects in relation to the general purpose fmancial statements taken as a whole. 4. TAUTGES, REDPATH & CO., LTD. Certified Public Accountants May 5, 1994 4810 White Bear Parkway • White Bear Lake, Minnesota 55110 • 612/426 -7000 • FAX /426 -5004 • Member of HLB International GENERAL PURPOSE FINANCIAL STATEMENTS CffY OF LINO LAKES, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1993 Governmental Fund Types Special Debt Capital Assets General Revenue Service Project Restricted investments Cash and investments $1, 676 ,812 $2,777 $4,230,807 $6,704,005 Cash and investments with escrow agent 81,126 Assets with deferred compensation plan administrator - Accrued interest receivable Accounts receivable 36,237 4,400 Deposits receivable Due from other governmental units 44,101 1,104,455 Taxes receivable: Delinquent 24,322 5,210 2 Due from County 28,611 4,643 2,288 Delinquent tax increment - 9,436 Special assessments receivable 1,325,811 2,117,697 Prepaid items 88,984 521 40 Fixed assets (net of accumulated depreciation) - Amount available in Debt Service Fund Amount to be provided for retirement of GLTD Total assets $1,899,067 $9,942,323 Liabilities, equity and other credits Liabilities: Cash overdraft $3,383 $851,419 Accounts payable $54,427 $359 268 71,546 Salaries payable 15,243 196 Contracts payable 84,983 Assessments payable on City property - Deposits payable - Due to other governmental units 42,464 4,220 Deferred revenue 30,274 $1,312,723 2,139,958 Bonds payable - Interest payable Lease payable Deferred compensation payable Total liabilities 142,408 359 1,316,374 3,152,322 Equity and other credits: Contributions from property owners Invested in general fixed assets Retained earnings Fund balance (deficit): Reserved 88,984 4,086,918 Unreserved Designated 1,667,675 3,073 - 7,087,371 Undesignated - (134) 244,305 (297,370) Total equity and other credits 1,756,659 2,939 4,331,223 6,790,001 Total liabilities, equity and other credits $1, 899 ,067 $3,298 $5,647,597 $9,942,323 The accompanying notes are an integral part of these financial statements. Statement 1 WWII Proprietary Fiduciary Account Groups Totals Fund Type Fund Type General General Long- (Memorandum Only) Enterprise Agency Fixed Assets Term Debt 1993 1992 _ (Unaudited) $40,273 - $40,273 5102,675 81,418 $161,941 - 12,857,760 10,513,797 Nam, - _ _ 81,126 78,988 - 280,991 280,991 224,960 - 113,802 113,802 89,650 192,271 232,908 168,923 90,449 - 90,449 253,162 4,125 - 1,152,681 728,538 ■ ... - 29,534 76,791 35,542 24,700 _ 9,436 13,086 3,443,508 4,844,047 21,664 111,209 92,195 13,243,893 $2,630,549 15,874,442 9,726,073 $4,086,918 4,086,918 3,364,458 Vawr ■ ■ ■ 5,857,013 5,857,013 7,920,779 813,583,644 $647,183 $2,630,549 $9,943,931 $44,297,592 $38,222,822 , $2,424 $113,793 $971,019 $1,433,375 7,561 9 134,170 131,434 993 16,432 14,691 84,983 268,636 $10,510 10,510 10,510 252,390 252,390 317,524 34,477 81,161 51,113 3,482,955 4,896,587 1,060,000 9,931,000 10,991,000 12,328,500 27,735 - 27,735 41,732 2,421 2,421 6,227 280,991 - - 280,991 224,960 1,133,190 647,183 $0 9,943,931 16,335,767 19,725,289 12,228,154 - 12,228,154 6,384,363 2,630,549 2,630,549 2,344,451 222,300 222,300 95,988 4,175,902 3,442,247 8,758,119 6,887,805 (53,199) (657,321) 12,450,454 0 2,630,549 0 27,961,825 18,497,533 $13,583,644 $647,183 $2,630,549 $9,943,931 $44,297,592 838,222,822 • .. . I.. . 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 31,1993 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 Miscellaneous Total revenue Expenditures: Current General government Public safety Highways and streets Parks, recreation and forestry Solid waste abatement Cable TV Economic Development Capital outlay: General government Public safety Highways and streets Parks, recreation and forestry Solid waste abatement Debt service: Principal Interest and fiscal charges Construction/acquisition Total expenditures Revenue over (under) expenditures Other financing sources (uses): Operating transfer in Operating transfer out Bond proceeds Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance (deficit) - January 1 Residual equity transfer in Residual equity transfer out Special General Revenue $1,420 ,369 565,684 673,944 239,562 $41,257 83,019 66,820 57,786 70,478 3,177,662 Debt Capital Totals (Memorandum Only) Service Project $234,898 $4 272,707 1,681,291 2,149,374 1993 $1,655,271 272,707 3,830,665 565,684 66,856 1,511,453 2,252,253 280,819 83,019 608,383 140,022 126,961 9,815,784 306 201,155 340,102 82,236 56,483 $41 ,563 2,184,200 4,412 ,359 817,374 1,018 2,039 86,298 950,824 530,265 312,257 38,490 27,537 1,039 64,682 28,135 74,333 5,417 15,539 1,800 2,829,202 39,508 348,460 2,055 4,801 1,074 (2,898) 1,903 1,074 350,363 3,129 1,406,296 (190) Fund balance - December 31 $1,756,659 38,473 101,000 226,905 67,040 1992 $1,442,605 349,322 3,611,905 493,977 1,332,583 210,129 79,643 369,119 146,666 78,513 8,114,462 906,729 851,241 950,824 909,399 530,265 465,830 350,747 323 ,301 27 ,537 34,036 1,039 1,523 64,682 66,608 76,118 175 ,333 84,857 232,322 67,510 82 ,579 48,071 1,800 4 ,530 1,487,500 1,487,500 5,088,000 746,757 746,757 648,342 1,197,608 1,197,608 2,008,213 2,236,296 1,717,324 6,822,330 10,610,971 (52,096) 2,695,035 2,993,454 (2,496,509) 19,517 674,858 700,250 154,832 (41,049) (591,985) (635,932) (58,120) 150,319 150,319 3,737,545 (21 ,532) 233,192 214,637 3,834,257 (73,628) 2,928,227 3,208,091 1,337,748 3,584,723 4,681,902 9,672,731 8,334,983 820,128 820,128 98,498 (820,128) (820,128) (98,498) $4,331,223 $6,790,001 $12,880,822 $9,672,731 The accompanying notes are an integral part of these financial statements. w 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, 1993 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 Economic Development Capital outlay: General government Public safety Highways and streets -- Parks, recreation and forestry Solid waste abatement Economic Development Contingency Total expenditures Revenue over expenditures Other financing sources (uses) Operating transfer from Capital Project Funds Operating transfer to Capital Project Funds Total other financing sources (uses) Net increase in fund balance Fund balance - January 1 Fund balance - December 31 1993 Budget Actual $1,377,336 $1,420,369 515,955 565,684 653,113 673,944 187,851 239,562 83,200 83,019 45,000 66,820 24,000 24,267 57,109 57,786 45,077 46,211 2,988,641 3,177,662 847,886 965,238 538,371 341,287 38,870 1,423 69,286 23,444 74,700 2,400 14,200 500 71,036 2,988,641 0 Over (Under) Budget $43,033 49,729 20,831 51,711 (181) 21,820 267 677 1,134 189,021 817,374 (30,512) 950,824 (14,414) 530,265 (8,106) 312,257 (29,030) 27,537 (11,333) 1,039 (384) 64,682 (4,604) 28,135 4,691 74,333 (367) 5,417 3,017 15,539 1,339 1,800 1,800 (500) (71,036) 2,829,202 (159,439) 348,460 348,460 4,801 (2,898) 0 1,903 $0 350,363 1,406,296 $1,756,659 4,801 (2,898) 1,903 $350,363 The accompanying notes are an integral part of these financial statements. 1992 Actual (Memorandum Only) $1,206,998 493,977 607,831 210,129 79,643 41,927 19,286 29,726 16,277 2,705,794 739,752 909,399 465,830 323,301 34,036 1,523 66,289 748 700 6,727 4,530 2,552,835 152,959 (11,899) (11,899) 141,060 1,265,236 $1,406,296 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, 1993 Statement 4 Operating revenue: Water sales Sewer charges Other operating revenue Total operating revenue Operating expenses: Personal services Materials and supplies Contractual services Repair and maintenance MWCC sewer charges Depreciation: Purchased assets Contributed assets Utilities Other Total operating expenses Net income (loss) from operations Other income (expense): Interest on investments Maintenance agreement - MWCC Area and unit charges Bond interest Paying agent fees Total other income (expense) Net income (loss) before operating transfers: Operating transfers: Operating transfer from Capital Project Fund Operating transfer to Capital Project Fund Total operating transfers Net income (loss) Credit arising from transfer of depreciation to contributions from property owners Retained earnings - January 1 Retained earnings - December 31 Totals Enterprise Funds (Memorandum Only) 1993 1992 $177,536 291,062 61,100 529,698 91,738 81,000 31,485 17,999 168,891 $166,563 204,947 57,199 428,709 91,300 55,295 22,853 22,569 111,897 731 1,073 252,092 144,271 17,793 12,590 25,559 25,432 687,288 487,280 (157,590) (58,571) 6,628 7,294 132,175 (74,950) (400) 70,747 10,250 13,061 96,712 (57,632) 62,391 (86,843) 3,820 93,238 (132,175) (38,937) (125,780) 252,092 95,988 $222,300 The accompanying notes are an integral part of these financial statements. (96,712) (96,712) (92,892) 144,271 44,609 -. $95,988 CITY OF LINO LAKES, MINNESOTA COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES For The Year Ended December 31, 1993 Statement 5 Totals Enterprise Funds (Memorandum Only) 1993 1992 Cash flows from operating activities: Operating income (loss) ($157,590) ($58,571) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation 252,823 145,344 Change in assets and liabilities: Decrease (increase) in receivables (36,285) (44,650) Decrease (increase) in prepaid items (7,258) (12,212) Decrease (increase) in inventory 5,642 Increase (decrease) in payables (34,094) 35,260 Net cash flows from operating activities 17,596 70,813 Cash flows from noncapital financing activities: Maintenance agreement - MWCC 7,294 13,061 Collection of area and unit charges 132,175 96,712 Operating transfer from Capital Project Funds 3,891 Operating transfer to Capital Project Funds (132,175) (96,712) Net cash flows from noncapital financing activities 11,185 13,061 Cash flows from capital and related financing activities: - Bond proceeds 1,044,100 Interest and paying agent fees on revenue bonds (89,347) Operating transfer from Capital Project Funds 89,347 Construction in progress (19,211) (841,468) Net cash flows from capital and related financing activities (19,211) 202,632 - Cash flows from investing activities: Interest on investments 6,628 10,250 Net increase in cash and cash equivalents 16,198 296,756 Cash and cash equivalents - January 1 103,069 (193,687) Cash and cash equivalents - December 31 $119,267 $103,069 Noncash investing, capital and financing activities: - Water and Sewer lines in the amount of $6,095,811 and $724,999 were contributed to the Water and Sewer Fund in 1993 and 1992, respectively. The accompanying notes are an integral part of these financial statements. WNW • CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 1 of 19 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 As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the City of Lino Lakes and it component units. The component units discussed below are included in the City's reporting entity because of the significance of their operational or financial relationships with the City. COMPONENT In conformity with generally accepted accounting principles, the financial statements of component units have been included in the financial reporting entity either as blended component units or as discretely presented component units. Blended Component Units. The Economic Development Authority (EDA) of Lino Lakes is an entity separate from the City. However, for financial reporting purposes, the EDA is reported as if it were part of the City's operations because the members of the City Council serve as commission members. B. FUND ACCOUNTING 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. 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. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 2 of 19 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 fmanced 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 govemmental 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 fmanced 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. Govemmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. 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. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 3 of 19 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 -term 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 $3,482,955, which consists of the following: Property taxes receivable $29,534 Tax increments receivable 9,436 Special assessments receivable 3,417,453 Park dedication fees 4,400 Re -leaf grant 16,250 Oak Wilt grant 1,932 Deposits payable 3,950 Total $3,482,955 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, 1993 Page 4 of 19 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. Formal budgetary integration is employed as a management control device during the year for the General Fund. 6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and calculate user charges. These debt service and budget amounts represent general obligation bond indenture provisions and net income for operation and capital maintenance and are not reflected in the financial statements. 7. A capital improvement program is reviewed periodically by the City Council for the Capital Project Funds. However, appropriations for major projects are not adopted until the actual bid award of the improvement. The appropriations are not reflected in the financial statements. 8. Expenditures may not legally exceed budgeted appropriations at the 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 is considered cash equivalents. Restricted investments consist of Water Revenue Bond proceeds that are restricted for construction of the City's water tower. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 5 of 19 G . HOMESTEAD CREDIT AND AGRICULTURAL CREDIT AID (HACA) Property taxes on homestead property (as defmed 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 fmance 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 15 and December 15 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and the following January are recognized as revenue for the current year. Taxes 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 is fully offset by deferred revenue because it is not available to finance current expenditures. Prior to 1993, cities in Minnesota operated under a levy limitation law. A City's levy limit is equal to the prior years levy limit base (revenue levy plus local government 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 State legislature repealed levy limitations for taxes payable after 1992. 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 defmed metropolitan area. The valuation "shared" is a portion of commercial/mdustrial property valuation growth since 1971. Property taxes paid to the City through this formula for 1993 and 1992 totaled $322,764 and $345,484 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, 1993 Page 6 of 19 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 teen 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 governmental 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 The original cost of materials and supplies has been recorded as expenditures at the time of purchase of both the Governmental and Proprietary Funds. These funds do not maintain material amounts of materials and supplies. L. FIXED ASSETS GENERAL FIXED ASSETS General fixed assets am 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, 1993 Page 7 of 19 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 - 50 years Sewer 5 - 25 years Contributed assets: Water 20 - 50 years Sewer 20 - 50 years 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) fmanced 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 govemmental 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 $28,043 and $23,940 at December 31, 1993 and 1992 respectively. The City also has an unrecorded contingent liability for unused employee sick leave of $258,546 and $229,682 at December 31, 1993 and 1992 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-Tenn 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 fmancial resources. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 8 of 19 P . INTERFUND TRANSACTIONS Quasi - external 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 nonmutine 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 financial position, results of operations or changes in cash flows in conformity with generally arrepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations 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 govenunent 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 $988,121 and the bank balance was $1,164,467. The entire bank balance was covered by Federal depository insurance or by collateral held by the City's agent in the City's name. 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. VININ CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 9 of 19 f) Repurchase or reverse repuuchase 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, 1993: Securities Type Federal National Mortgage Association Federal Home Loan Mortgage Corp Treasury Securities Federal Agriculture Mortgage, Discount Notes Federal Farm Credit Bank Commercial Paper Totals Investment pools Total investments Deposits Petty cash Totals Credit Risk Category 1 2 $1,168,090 2,604,485 842,633 500,000 992,249 $6,107,457 4 Cash and investments with escrow agent Assets held by deferred compensation plan administrator 3 $300,000 200,000 355,748 $0 i $855,748 CarrYing Amount $1,468,090 200,000 2,604,485 842,633 500,000 1,347,997 6,963,205 3,975,538 10,938,743 988,121 150 '$11,927,014 $81,126 Market Value $1,454,358 200,000 2,617,958 846,175 500,218 1,347,094 $6,965,803 3,940,269 $10,906,072 , $280,991 $280,991 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 investments with escrow agent consist of undisbursed proceeds of the Public Project Bonds of 1990 which are restricted for the payment of debt associated with the City's fire station. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 10 of 19 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 Balance 1/1/93 Additions Deletions 12/31/93 $310,010 636,823 6,216 1,677,500 $0 $2,630,549 $310,010 625,950 $10,873 6,216 1,402,275 275,225 $2,344,451 4 $4 • A summary of Proprietary Fund fixed assets at December 31,1993 is as follows: Gas Sewer Water Utility Total Well $18,500 $18,500 Buildings and Structures 48,690 48,690 Machinery and Equipment $23,076 24,462 47,538 Water and Sewer Lines 8,110,130 5,943,951 14,054,081 Acquisition costs - gas utility $2,375 2,375 Total 8,133,206 6,035,603 2,375 14,171,184 Less: Accumulated Depreciation (533,203) (394,088) (927,291) Net Fixed Assets Note 4 CITY INDEBTEDNESS $7 $5 $13,243,893 The following is a schedule of changes in City indebtedness for the year ended December 31,1993. General Long Term Debt Account Bonded debt: General obligation Special assessment Assessment payable Capital lease payable Total general long term debt Proprietary Fund: Revenue bond Balance Balance 1/1/93 Additions Deletions 12/31/'93 Group: $1,553,500 9,715,000 10,510 6,227 11,285,237 1.060.000 $150,000 $177,500 $1,526,000 1,310,000 8,405,000 10,510 3,806 2,421 150.000 1,491,306 9,943,931 1 060 000 Total $12,345,237 $150,000 $1,491,306 $11,003,931 °^ CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 11 of 19 All long-term bonded indebtedness outstanding at December 31,1993 is backed by the full faith and credit of the City, including special assessment bond issues. Delinquent assessments receivable at December 31, 1993 totaled $43,036. The annual requirement to amortize all debt outstanding at December 31, 1993 including interest payments of $3,481,369 is as follows: 1994 1995 1996 1997 1998 1999 and on Total General Obligation Bonds $379,160 $235,298 $99,900 $98,294 S111,188 51,473,670 52,397,510 Special Assessment Bonds 5,051,452 530,779 576,303 593,295 418,940 3,220,798 10,391,567 Revenue bonds 91,147 104,565 112,233 109,545 111,589 1,154,152 1,683,231 Capital lease 2,482 2,482 Total $5,524,241 $870,642 $788,436 $801,134 $641,717 $5,848,620 $14,474,790 It is not practicable to determine the specific year for payment of assessments payable on City property. City indebtedness at December 31, 1993 is composed of the following. Final - Issue Mattuity Interest Original Payable Date Date Rates Issue 12/31/93 General Obligation Bonds: 1989A Equipment Certificates 5/1/89 5/1/94 7.65% $300,000 $60,000 1989B Equipment Certificates 8/1/90 2/1/95 6.65% 275,000 120,000 1990A Equipment Certificates 12/10/90 1/1/96 6.50% 88,500 36,000 1991A Equipment Certificates 12/19/91 1/1/95 4.95%- 5.40% 135,000 45,000 1992 Eguiprnent Certificates 1/1/93 2/1/95 3.75%- 4.15% 150,000 150,000 - Public Project Revenue Bonds - 1990A 10/1/90 2/1/10 7.12% 1,115,000 1,115,000 Total General Obligation Bonds 2,063,500 1,526,000 Vow Special Assessment Bonds: G. O. Improvement Bonds of 1988A 10/1/88 2/1/97 6.43% 1,160,000 655,000 G. O. Temporary Improvement Bonds of 1991A 8/1/91 8/1/94 5.83% 4,260,000 4,260,000 G. O. Improvement Refunding Bonds, Series 1992A 4/1/92 2/1/06 6.51% 3,640,000 3,490,000 Total Special Assessment Bonds 9.060.000 8,405.000 Revenue Bonds: G. O. Water Revenue Bonds, Series 1992B 4/1/92 2/1/08 6.67% 1,060,000 1,060,000 Total - All Bonds Assessments payable on City property Capital lease - phone voice mail 12,183,500 10,991,000 10,510 11/1/92 9/1/94 6.00% 6,253 2,421 Total Indebtedness ,$12,189,753 $11,003,931 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 12 of 19 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 1993 and 1992 is computed as follows: Market value Applicable percentage Debt limit December 31, 1993 1992 $368,367,100 $320,784,400 2% 2% 7,367,342 6,415,688 Amount of debt applicable to debt limit: Total bonded debt 10,991,000 12,328,500 Less: Special assessment bonds (8,405,000) (9,715,000) Public project revenue bonds (1,115,000) (1,115,000) Cash and investments in Debt Service Funds (90,270) (73,819) Revenue bonds (1,060,000) (1,060,000) Total debt applicable to debt limit 320,730 364,681 Legal debt margin Note 6 PENSION PLANS $7,046,612 $6,051,007_ A . PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA) 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, 1993, was $884,213 and $418,087, respectively; the City's total payroll was $1,390,264. 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 salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for 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 fora Basic member is 2 percent of average salary for each of the first 10 years of service and 2.5 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 1.5 percent for Coordinated members. For PEPFF members, the annuity accrual rate is 2.5 percent for each year of service through June 30, 1993. (Effective July 1, 1993, the annual accrual rate for PEPFF is 2.65 percent.) 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. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 13 of 19 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 giinlify 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. 356.215, 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* 4.39% 4.67% 9.95% 8.00% 12.00% 18.60% Total contributions made by the City during calendar year 1993 were: PERF PEPFF Totals Amount Employees Employer $37,402 $39,614 33,447 50,170 $70,849 $89,784 Percentage of Covered Payroll Employees Employer 4.23% 4.48% 8.00% 12.00% *The recommended rates scheduled above represent the required rates for fiscal year 1993 contributions as reported in the July 1, 1992, actuarial valuation reports. The City's contribution for the year ended June 30, 1993 to the PERF represented .03 percent of total contributions required of all participating entities. For the PEPFF, contributions for the year ended June 30, 1993, represented .16 percent of total contributions required of all participating entities. 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. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 14 of 19 The pension benefit obligations as of June 30, 1993, are shown below: PERF PEPFF (In thousands) Total pension benefit obligation $5,163,766 $932,333 Net assets available for benefits, at cost (Market Values for PERF = $4,515,052; PEPFF = $1,173,312) 4,304,163 1,090,857 Unfunded (assets in excess of) pension benefit obligation $859,603 ($158,524) The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30, 1993. Net assets available to pay pension benefits were valued as of June 30,1993. Changes in Benefit Provisions, Three bills enacted during the 1993 legislative session improved benefits for many members without a material effect on the pension benefit obligation in the PERF or the PEPFF. The early retirement incentive bill permitted a public employer to offer PERA's Basic and Coordinated members an increase of one - fourth percent (.25%) in the formula multiplier for each year of service, up to the first 30 years, or health insurance coverage to age 65. Also, the survivor protection bill provided benefits to either a surviving spouse or children of PERF Coordinated Plan members who die before age 50. Lastly, the Police and Fire benefit increase bill, which became effective July 1,1993, permanently increased the PEPFF formula multiplier from 2.5 percent to 2.65 percent of an individual's average salary over the five highest consecutive years of earnings. Ten -Year Historical Trend Information Ten -year historical trend information is presented in PERA's Component Unit Financial Report for the year ended June 30, 1993. 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 30,1993, 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. 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). CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 15 of 19 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 $6,384,363..._14§291g4 ($252,092), . $12,228,154 Note 9 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. 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 Agency Funds on the combined balance sheet is $280,991 of funds recorded at market value and primarily held by insurance companies in various investment pools for future payment of plan benefits. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 16 of 19 Note 10 SEGMENT INFORMATION The City maintains an Enterprise Fund which provides water and sanitary sewer services. Segment information for the year ended December 31, 1993 is as follows: Total Water Sewer Water Gas Totals Utility Utility and Sewer Utility 1993 1992 Operating revenue $233,399 $296,299 $529,698 $529,698 $428,709 Depreciation expense 95,002 157,821 252,823 252,823 145,344 Operating income (loss) (31,034) (126,556) (157,590) (157,590) (58,571) Property, plant and equipment additions 2,159,415 3,955,678 6,115,093 6,115,093 1,566,467 Net income (loss) 32,042 (118,884) (86,842) (86,842) 3,820 Area and unit charges 132,175 132,175 132,175 96,712 Operating transfer in 93,238 93,238 93,238 Operating transfer out (132,175) (132,175) (132,175) (96,712) Net property, plant and equipment 5,641,515 7,600,003 13,241,518 $2,375 13,243,893 7,381,622 Net working capital 169,560 99,425 268,985 (2,424) 266,561 158,729 Total assets 5,847,023 7,734,246 13,581,269 2,375 13,583,644 7,661,632 Bonds payable 1,060,000 1,060,000 1,060,000 1,060,000 Total equity 4,751,075 7,699,428 12,450,503 (49) 12,450,454 6,480,351 Capital contributions 2,140,204 3,955,679 6,095,883 6,095,883 724,999 Note 11 TAX INCREMENT DISTRICTS The City of Lino Lakes is the administrating authority for Economic Development District #1 established under MS 273.71 in 1987. As of December 31,1993 the City has not issued Tax Increment bonds for any of its Tax Increment Districts. Within the Economic Development District are the following Tax Increment Financing 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 $153,376 Original tax capacity 2,685 Captured tax capacity $150,691 Retained by authority $150,691 Shared with other taxing districts 0 Total $150,691 Immo CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 17 of 19 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 $116,693 Original tax capacity 10,543 Captured tax capacity $106 150 Retained by authority $106,150 Shared with other taxing districts 0 Total $106,150 District #1 -3 was established pursuant to MS 469.174, subd. 10(a)(2) which qualifies it as a redevelopment district. This district is to be decertified in 1994. 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 first. Current tax capacity $52,039 Original tax capacity 181,890 District #1 -5 was established pursuant to MS 469.174, Subd. 11 which qualifies it as a Housing District. The duration of the District is 25 years from the date of the first increments. Note 12 DEFICIT FUND BALANCES /RETAINED EARNINGS, The City has deficit fund balances/retained earnings at December 31,1993 as follows: Fund/ Balance Retained Earnings Deficit Special Revenue Fund: Economic Development Authority $134 Debt Service Fund 1992 Certificates of Indebtedness 3,383 Capital Project Funds: Community Development Block Grant 8,314 Interim Construction 172,276 Industrial Park Construction 74,676 1994 Construction 21,775 Tax Increment Financing 1-4 20,329 Enterprise Fund Gas Utility 49 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 18 of 19 Note 13 CONTINGENCIES The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs except pending special assessment appeals. Note 14 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT General Obligation bond issues sold by the City are financed by ad valorem tax levies and special assessment bond issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy any additional taxes found necessary for full payment of principal and interest. These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 1993 and 1992. Future scheduled tax levies for all bonds outstanding at December 31,1993 totaled $6,261,372. Note 15 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY, At December 31,1993 and 1992 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, 1993 and 1992 are shown on the various balance sheets as segregations of the fund equity. A summary of such designations is as follows: December 31, 1993 1992 General Fund Reserve for prepaid items $88,984 $77,789 Designated for general contingencies 502,867 385,204 Designated for cash flow reserve 1,051,000 933,255 Designated for equipment 10,048 Designated for employee benefits 113,808 Special Revenue Fund: Designated for recreation program 3,073 Debt Service Funds: Reserved for debt retirement 4,086,918 3,364,458 Capital Project Funds: Designated for capital improvements 6,822,363 5,175,244 Designated for committed contracts 13,421 48,215 Designated for equipment acquisition 78,569 131,303 Designated for park improvements 173,018 204,536 Totals $12,934,021 $10,330,052 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 19 of 19 Note 16 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 1993 totaled $31,675. This amount was received in 1994 and will be recorded as revenue (available criteria) in 1994. -- Note 17 INTERFUND OPERATING TRANSFERS Interfund operating transfers consisted of the following at December 31,1993: Governmental Proprietary Funds Funds Total Transfer in $700,250 $93,238 $793,488 Transfer out (635,932) (132,175) (768,107) Difference due to transfer from Agency Fund $25,381 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS CITY OF LINO LAKES, MINNESOTA GENERAL FUND BALANCE SHEET December 31, 1993 With Comparative Amounts At December 31,1992 Statement 6 December 31, 1993 1992 Assets Cash and investments $1,676,812 $1,343,508 Accounts receivable 36,237 18,006 Due from other governmental units 44,101 36,385 Taxes receivable: Delinquent 24,322 65,490 Due from County 28,611 18,456 Prepaid items 88,984 77,789 Total assets $1,899,067 $1,559,634 Liabilities and Fund Balance Liabilities: Accounts payable $54,427 $47,048 Salaries payable 15,243 13,791 Due to other governmental units 42,464 23,769 Deferred revenue 30,274 68,730 Total liabilities 142,408 153,338 Fund balance: Reserved 88,984 77,789 Unreserved: Designated 1,667,675 1,328,507 Total fund balance 1,756,659 1,406,296 Total liabilities and fund balance $1,899,067 $1,559,634 low Vimmie CITY OF LINO LAKES, MINNESOTA GENERAL FUND Statement 7 STATEMENT OF REVENUE, EXPENDITURES AND Page 1 of 5 CHANGES 114 FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1993 With Comparative Actual Amounts For The Year Ended December 31,1992 1993 Over (Under) 1992 Budget Actual Budget Actual Revenue: General property taxes: Current and delinquent $1,100,889 $1,131,362 $30,473 $911,761 Fiscal disparities 276,447 276,447 0 288,413 Excess tax increments 12,542 12,542 6,791 Penalties and interest 18 18 33 Total general property taxes 1,377,336 1,420,369 43,033 1,206,998 Licenses and permits: Non business 496,000 547,943 51,943 479,334 - Business 19,955 17,741 (2,214) 14,643 Total licenses and permits 515,955 565,684 49,729 493,977 Intergovernmental: Federal: Other 9,351 9,351 9,662 State: Local govemment aid 90,141 90,138 (3) 94,960 Homestead credit and equalization aid 399,033 399,036 3 335,975 Mobile home homestead credit 3,431 3,431 3,213 Police state aid 47,253 47,253 0 44,692 Police - other 2,686 2,686 0 2,967 MSA maintenance 84,000 86,246 2,246 81,232 Other 0 1,475 County: Solid waste 30,000 35,803 5,803 31,453 Other 0 2,202 _ Total intergovernmental 653,113 673,944 20,831 607,831 Charges for services: General goverment 9,400 30,534 21,134 10,096 Planning/engineering 55,000 84,295 29,295 69,023 Recreation 2,000 2,203 203 31,515 Fees retained from collection for other governments - SAC/surcharge 2,000 2,707 707 2,214 Administrative charge - other funds 58,000 57,701 (299) 73,495 Aerial map charge - other funds 15,800 16,760 960 22,765 Public safety 45,651 45,362 (289) 1,021 Total charges for services 187,851 239,562 51,711 210,129 Fines and forfeits 83,200 83,019 (181) 79,643 Interest on investments 45,000 66,820 21,820 41,927 Refunds and reimbursements 57,109 57,786 677 29,726 Gas franchise fees 24,000 24,267 267 19,286 iviiscellaneous: Sale of property 4,000 12,503 8,503 Donations 12,817 13,380 563 Other 28,260 20,328 (7,932) 16,277 Total miscellaneous 45,077 46,211 1,134 16,277 Total revenue 2,988,641 3,177,662 189,021 2,705,794 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, 1993 With Comparative Actual Amounts For The Year Ended December 31,1992 Statement 7 Page 2 of 5 1993 Over (Under) 1992 Expenditures: Budget Actual Budget Actual General government: Mayor and council: Current: Personal services $20,910 $19,768 ($1,142) $19,045 - Supplies 300 30 (270) 390 Other services and charges 19,285 19,117 (168) 25,727 Total mayor and council 40,495 38,915 (1,580) 45,162 Elections: Current Personal services 3,045 2,342 (703) 8,431 Supplies 750 926 176 135 Other services and charges 299 345 46 673 Capital outlay 10,048 10,048 0 1,466 Total elections 14,142 13,661 (481) 10,705 Administration: Current: Personal services 262,379 249,236 (13,143) 236,343 - Supplies 13,500 11,273 (2,227) 9,760 Other services and charges 43,471 38,104 (5,367) 39,051 Capital outlay 1,500 691 (809) _ Total administration 320,850 299,304 (21,546) 285,154 Assessing: Current Supplies 107 (107) Contractual services 31,463 31,463 0 27,455 Total assessing 31,570 31,463 (107) 27,455 Consultants: Current: Engineer 20,000 18,702 (1,298) 24,386 Independent accountants and auditor 6,480 6,117 (363) 5,689 Planning and economic development 35,000 36,473 1,473 33,921 Legal 115,000 117,901 2,901 90,255 Legal printing 13,700 13,413 (287) 11,488 Other 20,800 22,919 2,119 10,692 Total consultants 210,980 215,525 4,545 176,431 Planning and zoning commission: Current Personal services 1,360 781 (579) 563 Supplies 50 99 49 117 _ Other services and charges 5,372 2,638 (2,734) 2,370 Total planning and zoning commission 6 ,782 3,518 (3,264) 3,050 IIMMIIR awift CITY OF LINO LAKES, MINNESOTA GENERAL FUND Statement 7 .. STATEMENT OF REVENUE, EXPENDITURES AND Page 3 of 5 CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1993 With Comparative Actual Amounts For The Year Ended December 31,1992 1993 Over (Under) 1992 General government: (continued) Budget Actual Budget Actual Charter commission: Current: Supplies $100 $7 ($93) $47 Other services and charges 3,250 3,810 560 403 Total charter commission 3,350 3,817 467 450 Planning/engineering: Current Personal services 100,230 96,004 (4,226) 82,698 Supplies 1,200 1,150 (50) 1,099 Other services and charges 5,906 4,650 (1,256) 1,913 Capital outlay 0 3 Total planning/engineering 107,336 101,804 (5,532) 85,713 General government buildings: Current Personal services 39,223 32,841 (6,382) 15,168 Supplies 7,040 11,309 4,269 10,657 Other services and charges 77,666 75,956 (1,710) 81,276 _ Capital outlay 11,896 17,396 5,500 64,820 Total general government buildings 135,825 137,502 1,677 171,921 WON Total general government Public safety: "' Police: Current 871,330 845,509 (25,821) 806,041 Personal services 560,661 558,732 (1,929) 559,076 Supplies 34,944 29,582 (5,362) 41,032 Other services and charges 56,522 55,667 (855) 38,448 Capital outlay 74,200 74,333 133 Total police 726,327 718,314 (8,013) 638,556 Fire protection: Current: Personal services 26 26 420 Contractual services 225,532 225,532 0 208,986 Other services and charges 1,276 1,276 63 Total fire protection 225,532 226,834 1,302 209,469 - Building inspection: Current Personal services 72,024 68,641 (3,383) 49,304 - Supplies 4,700 2,223 (2,477) 2,454 Other services and charges 4,021 3,570 (451) 4,908 Total building inspection 80,745 74,434 (6,311) 56,666 CITY OF LINO LAKES, MINNESOTA GENERAL FUND Statement 7 STATEMENT OF REVENUE, EXPENDITURES AND Page 4 of 5 CHANGES 14 FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1993 With Comparative Actual Amounts For The Year Ended December 31,1992 1993 Over (Under) 1992 Public safety: (continued) Budget Actual Budget Actual Civil defense: Current: Supplies $11 $11 $143 Other services and charges $3,534 2,750 (784) 1,869 Capital outlay 500 (500) 748 Total civil defense 4,034 2,761 (1,273) 2,760 Animal control: Current Supplies 100 125 25 100 Contractual services 3,200 2,689 (511) 2,596 Total animal control 3,300 2,814 (486) 2,696 Total public safety 1,039,938 1,025,157 (14,781) 910,147 Highways and streets: Current Personal services 259,650 268,698 9,048 241,133 Supplies 47,545 53,279 5,734 55,108 Contractual services: Streets 152,781 136,643 (16,138) 104,941 Signs 10,580 9,671 (909) 8,610 Street lighting 26,528 26,882 354 19,692 Other services and charges 41,287 35,092 (6,195) 36,346 Capital outlay 2,400 5,417 3,017 700 Total highways and streets 540,771 535,682 (5,089) 466,530 Recreation: Current Personal services 50,388 48,214 (2,174) 53,641 Supplies 1,850 1,956 106 7,143 Other services and charges 8,370 9,743 1,373 4,924 Capital outlay 289 289 Total recreation 60,608 60,202 (406) 65,708 Parks: Current Personal services 175,084 168,061 (7,023) 173,020 Supplies 9,577 15,881 6,304 32,067 Other services and charges 47,978 39,344 (8,634) 16,976 Contractual services 5,000 6,487 1,487 12,096 Capital outlay 3,000 3,498 498 2,607 Total parks 240,639 233,271 (7,368) 236,766 CITY OF LINO LAKES, MINNESOTA GENERAL FUND Statement 7 STATEMENT OF REVENUE, EXPENDITURES AND Page 5 of 5 CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31,1993 With Comparative Actual Amounts For The Year Ended December 31,1992 1993 Over (Under) 1992 Budget Actual Budget Actual Forestry: Current - Personal services $37,427 $19,882 ($17,545) $19,289 Supplies 1,300 1,180 (120) 1,841 Other services and charges 2,313 120 (2,193) 587 Contractual services 2,000 1,389 (611) 1,717 Capital outlay 11,200 11,752 552 4,120 Total forestry 54,240 34,323 (19,917) 27,554 Solid waste abatement: Current: Personal services 14,437 10,359 (4,078) 9,480 Supplies 500 2,501 2,001 2,005 - Other services and charges 8,933 3,512 (5,421) 5,583 Contractual services 15,000 11,165 (3,835) 16,968 Capital outlay 1,800 1,800 4,530 _ Total solid waste abatement 38,870 29,337 (9,533) 38,566 Cable TV: Current: Personal services 1,210 827 (383) 1,180 Supplies 200 210 10 187 Other services and charges 13 2 (11) 156 - Total cable TV 1,423 1,039 (384) 1,523 Economic Development: Current: - Personal services 8,738 8,812 74 Supplies 500 195 (305) Other services and charges 16,848 12,475 (4,373) - Contractual services 43,200 43,200 0 Capital outlay 500 (500) Total economic development 69,786 64,682 (5,104) 0 Contingency 71,036 (71,036) Total expenditures 2,988,641 2,829,202 (159,439) 2,552,835 Revenue over expenditures 0 348,460 348,460 152,959 Other financing sources (uses): Operating transfer from Capital Project Funds 4,801 4,801 Operating transfer to Capital Project Funds (2,898) (2,898) (11,899) Total other financing sources (uses) 0 1,903 1,903 (11,899) Net increase in fund balance $0 350,363 $350,363 141,060 - Fund balance - January 1 1,406,296 1,265,236 Fund balance - December 31 $1,756,659 $1,406,296 CITY OF LINO LAKES, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1993 With Comparative Totals For December 31, 1992 Statement 8 Assets Cash and investments Prepaid expenses Total assets Liabilities and fund balance Economic Development Program Totals Authority Recreation 1993 $2,777 $2,777 521 521 1992 $0 $3,298 $3,298 $0 Liabilities: Account payable $134 $225 Salaries payable Total liabilities 134 225 $359 0 359 Fund balance (deficit): Unreserved: Designated 3,073 3,073 Undesignated (134) (134) (190) Total fund balance (deficit) (134) 3,073 2,939 (190) — $190 190 Total liabilities and fund balance $0 $3,298 $3,298 $0 NNW WOW CITY OF LINO LAKES, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31,1993 With Comparative Totals For The Year Ended December 31, 1992 Statement 9 Economic Development Program Authority Recreation 1993 Totals Revenue Recreation fees $41,257 $41,257 Interest on investments 306 306 Total revenues $0 41,563 41,563 1992 $0 Expenditures: General government: Current: Personal services 490 Other services and charges 1,018 1,018 2,872 Parks and recreation Current Personal services 22,793 22,793 Supplies 12,922 12,922 Other services and charges 2,775 2,775 Total expenditures 1,018 38,490 39,508 3,362 Revenue over (under) expenditures (1,018) 3,073 2,055 (3,362) Other financing sources: Operating transfer from Capital Project Funds 1,074 1,074 3,172 Net increase (decrease) in fund balance 56 3,073 3,129 (190) Fund balance (deficit) - January 1 (190) 0 (190) 0 — Fund balance (deficit) - December 31 ($134) $3,073 $2,939 ($190) CITY OF LINO LAKES, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1993 With Comparative Totals For December 31, 1992 Temporary Improvement Improvement Improvement Closed Bonds of Bonds of Bonds of Bond 1988 1991A 1992A Assets Cash and investments $247,503 $878,646 $2,313,148 $647,142 Cash and investments with escrow agent - - Taxes receivable: Delinquent 46 Due from County 7 - Special assessments receivable: Delinquent 1,283 5,560 2,037 17,583 Deferred 34,424 117,281 704,262 414,573 Special defened City property 10,510 - Due from County 446 3,281 4,324 10,247 Total assets $294,219 $1,004,768 $3,023,771 $1,089,545 Liabilities and Fund Balance Liabilities: Cash overdraft Accounts payable $268 Deferred revenue 46,263 $122,841 $706,299 $432,156 Total liabilities 46,531 122,841 706,299 432,156 Fund balance (deficit): Reserved for debt retirement - 881,927 2,317,472 657,389 Unreserved: Undesignated 247,688 Total fund balance (deficit) 247,688 881,927 2,317,472 657,389 Total liabilities and fund balance $294,219 $1,004,768 $3,023,771 $1,089,545 Statement 10 1989A Certificates - On OM of Indebtedness $8,538 1,443 1,158 1989B Certificates of Indebtedness $77,762 1,302 1,120 $11,139 $80,184 $1,443 1,443 9,696 9,696 $1,302 1,302 78,882 78,882 $11,139 $80,184 1990 Certificates of Indebtedness $3,002 402 347 $3,751 $402 402 1991 Certificates of Indebtedness $4,351 726 764 1992 Certificates of Indebtedness $5,841 $726 726 3,349 5,115 3,349 5,115 $3,751 $5,841 . . $0 $3,383 3,383 Public Project Revenue Bonds of 1990A Totals December 31, 1993 1992 $50,715 $4,230,807 $3,550,277 81,126 81,126 6 1,291 1,247 5,210 11,295 4,643 3,387 26,463 83,629 1,270,540 1,970,047 0 598,585 10,510 10,510 18,298 31,051 $134,379 $5,647,597 $6,258,787 - $3,383 268 $1,291 1,312,723 $2,674,064 1,291 1,316,374 2,674,064 133,088 4,086,918 3,364,458 (3,383) 244,305 _ 220,265 (3,383) 133,088 4,331,223 3,584,723 $0 $134,379 $5,647,597 $6,258,787 CITY OF LINO LAKES, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1993 With Comparative Totals For The Year Ended December 31, 1992 Revenue: General property taxes: Current and delinquent Fiscal disparities Intergovernmental: State: HACA and equalization aid Special assessments: Current and delinquent Prepayments Tax forfeit Penalties and interest Interest on investments Total revenue Closed Bond $93 15,220 20,529 422 1,255 13,475 50,994 Expenditures: Current General government 2,039 Debt service: Principal retirement Interest Paying agent fees Total expenditures 2,039 Revenue over (under) expenditures 48,955 Other financing sources (uses): Operating transfer to Debt Service Funds Operating transfer to Capital Project Funds (21,532) Operating transfer from Debt Service Fund Bond proceeds Total other financing sources (uses) (21,532) Net increase (decrease) in fund balance 27,423 Fund balance - January 1 Residual equity transfer in Residual equity transfer out Fund balance (deficit) - December 31 220,265 Improvement Bonds of 1988 $49,778 15,176 8,752 9,019 47,126 129,851 Temporary Improvement Bonds of 1990B $5,602 5,602 145,000 1,015,000 48,250 61,915 362 - 193,612 1,076,915 (63,761) (1,071,313) 0 0 (63,761) (1,071,313) 945,688 332,130 739,183 Temporary Improvement Bonds of 1991A $181,768 863,078 3,134 103,695 1,151,675 • am le 238,560 - 400 238,960 912,715 -- 19,517 19,517 932,232 1,385,240 $247,688 $881,927 $0 $2,317,472 MIMS Ilmwr Vs low Statement 11 1989A Improvement Certificates Bonds of of 1992A Indebtedness $99,250 406,389 1989B Certificates of Indebtedness $46,373 $45,299 11,304 11,099 16,318 16,020 7,521 26,564 539,724 73,995 150,000 288,594 400 438,994 60,000 6,885 66,885 100,730 7,110 (19,517) 2,170 74,588 55,000 9,694 64,694 9,894 1990 Certificates of Indebtedness 1991 Certificates of Indebtedness 1992 Certificates of Indebtedness Public Project Revenue Bonds of 1990A Totals 1993 1992 $14,023 $31,642 $51,151 $188,581 $178,532 3,437 7,850 12,627 46,317 57,070 4,961 11,331 18,226 66,856 65,613 401 22,822 17,500 3,532 21,032 1,790 897 51,720 45,000 4,793 $0 3,383 49,793 3,383 1,927 (3,383) (19,517) 0 0 0 0 0 81,213 7,110 9,894 1,790 1,927 (3,383) 346,016 305,505 1,305,172 1,907,548 9,174 20,929 29,737 1,225 201,155 133,131 83,229 2,184,200 2,677,136 2,039 1,760 1,487,500 5,088,000 77,275 742,881 617,251 2,714 3,876 31,091 79,989 2,236,296 5,738,102 3,240 (52,096) (3,060,966) (19,517) (21,532) (2,946) 19,517 - 0 3,352,340 0 (21,532) 3,349,394 3,240 (73,628) 288,428 576,176 2,586 68,988 1,559 3,188 0 48,903 3,584,723 3,296,295 '" 80,945 820,128 98,498 0 (98,498) Now $657,389 $9,696 $78,882 $3,349 $5,115 ($3,383) $133,088 $4,331,223 $3,584,723 CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1993 With Comparative Totals For December 31, 1992 Statement 12 Page 1 of 2 Area Capital Community and Surface Dedicated Improvement Development Unit Water Parks Projects Block Grant Charge Management Assets Cash and investments $173,018 $78,569 $3,976,784 $246,859 Cash and investments with escrow agent - - - Accounts receivable 4,400 Deposits receivable - - Due from other governmental units - $11,439 - 2,210 Taxes receivable: Delinquent - 2 - - Due from County - - - Delinquent tax increment - - - - Special assessments receivable: Delinquent - 15,520 724 Due from County - 6,779 377 - Deferred - 1,521,471 201,628 Special deferred - 278,014 19,099 Prepaid item 40 Total assets Liabilities and Fund Balance $177,418 $78,571 $11,479 $5,798,568 $470,897 Liabilities: Cash overdraft $18,378 - Accounts payable 1,219 $1,926 $18,439 Salaries payable 196 Contracts payable - Deposits payable - Due to other governmental units - Deferred revenue $4,400 $2 1,815,005 221,451 Total liabilities 4,400 2 19,793 1,816,931 239,890 Fund balance (deficit): Unreserved: Designated: Commited contracts - Capital improvements - 3,981,637 231,007 Equipment acquisition 78,569 Park improvements 173,018 - Undesignated - (8,314) Total fund balance (deficit) 173,018 78,569 (8,314) 3,981,637 231,007 Total liabilities and fund balance $177,418 $78,571 $11,479 $5,798,568 $470,897 CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1993 With Comparative Totals For December 31, 1992 Interim MSA SAC 1989 Construction Construction Sealcoating Revolving Construction Assets Cash and investments $45,493 $159,176 $457,274 $181,732 Cash and investments with escrow agent Accounts receivable Deposits receivable Due from other governmental units Taxes receivable: Delinquent Due from County Delinquent tax increment Special assessments receivable: Delinquent 104 225 Due from County 75 596 Deferred 1,915 71,170 Special deferred Prepaid item Total assets Liabilities and Fund Balance $47,587 $231,167 $457,274 $181,732 Liabilities: Cash overdraft $132,384 - Accounts payable 35,600 $1,362 Salaries payable - Contracts payable 4,292 $2,725 13,114 Deposits payable - - Due to other governmental units Deferred revenue $2,019 71,395 Total liabilities 172,276 2,019 74,120 $0 14,476 Fund balance (deficit): Unreserved: Designated: Commited contracts 8,066 5,355 Capital improvements 45,568 148,981 457,274 161,901 Equipment acquisition - Park improvements Undesignated (172,276) Total fund balance (deficit) (172,276) 45,568 157,047 457,274 167,256 Total liabilities and fund balance $0 $47,587 $231,167 $457,274 $181,732 WWI Statement 12 Page 2 of 2 Tax Tax Tax Industrial Apollo Increment Increment Increment 1991 Park Drive 1993 1994 Financing Financing Financing Totals Construction Construction Construction Construction Construction 1 -1 1 -2 1-4 1993 1992 $118,070 $15,956 $954,621 $296,453 $6,704,005 $5,422,040 0 78,982 4,400 4,400 0 131,050 33,456 $1,057,350 - - 1,104,455 678,559 2 6 2,288 2,288 2,857 9,433 3 9,436 13,086 16,573 35,059 7,827 13,924 1,796,184 1,804,129 297,113 297,113 40 - $151,526 $0 $1,057,350 $15,956 $0 $966,342 $296,456 $0 $9,942,323 $8,481,205 $74,571 $588,948 $19,980 $17,158 $851,419 $1,341,310 - $388 105 8,131 $114 1,795 $135 $134 2,198 71,546 74,882 - 196 - 64,852 - 84,983 225,446 - 0 258 1,888 1,359 973 4,220 3,614 16,250 9,433 3 2,139,958 2,153,793 388 74,676 678,181 114 21,775 11,456 1,496 20,329 3,152,322 3,799,303 - 13,421 48,215 151,138 379,169 15,842 954,886 294,960 6,822363 5,175,244 - - - 78,569 131,303 173,018 204,536 (74,676) (21,775) (20,329) (297,370) (877,396) 151,138 (74,676) 379,169 15,842 (21,775) 954,886 294,960 (20,329) 6,790,001 4,681,902 $151,526 $0 $1,057,350 $15,956 $0 $966,342 $296,456 $0 $9,942,323 $8,481,205 %N. IOW CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUE, EXPENDTfURES AND CHANGES IN FUND BALANCE For The Year Ended December 31,1993 With Comparative Totals For The Year Ended December 31, 1992 Statement 13 Pagel d 2 Capital Community Area and Surface Centennial Dedicated Improvement Development Unit Water Fire Interim Parks Projects Block Grant Charge Management Station Construction Revenue: General property taus: Current and delinquent $4 Tax increments Intergovernmental: State: MSA construction $11,342 Other Federal: CDBG $32,638 - $19,963 Other County: Other Metropolitan Waste Control Commission Special assessments: Current and delinquent 226,158 19,265 Prepayments 1,337,037 199,234 $2,095 Penalties and interest 4,239 229 Interest on investments $11,885 7,361 230 203,844 6,096 $2,240 Refunds and reimbursements - - 4,375 58,941 Park dedication fees 56,483 - �" Total revenue 68,368 7,365 32,868 1,782,620 249,162 2,240 61,036 Expenditures: General government: Cunene Personal services 16,083 - - Contractual services 15,299 4,078 37,777 277 Supplies - - Capital outlay: General government 38,473 Public safety 101,000 - Highways and streets - 87,156 29,925 Parks, recreation and forestry 63,095 3,945 Construction costs - - 24,385 82,571 Total expenditures 63,095 230,574 31,382 28,463 67,702 277 82,571 Revenue over (under) expenditures 5273 (223,209) 1,486 1,754,157 181,460 1,963 (21 ,535) Other financing sources (uses): Operating transfer from General Fund 2,898 Operating transfer from Debt Service Funds 21,532 Operating transfer from Capital Project Funds 86,014 Operating transfer from Enterprise Fund - 132,175 - �, Operating transfer from Agency Fund 20,156 5,225 Operating transfer to General Fund (4,801) - Operating transfer to Special Revenue Fund Operating transfer to Capital Project Funds (31,990) - (442,989) Operating transfer to Enterprise Funds - - (89,347) (3,891) Bond proceeds - 150,319 - - Total other financing sources (uses) (36,791) 170,475 0 (400,161) (3,891) 0 115,669 Net increase (decrease) In fund balance (31,518) (52,734) 1,486 1 ,353,996 177,569 1,963 94,134 Fund balance (deficit) - January 1 204,536 131,303 (9,800) 3,292,873 53,438 78,982 (266,410) Residual equity transfer (665,232) (80,945) Fund balance (detidt) - December 31 $173,018 $78 ,569 ($8,314) $3,981,637 $231,007 $0 ($172,276) CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1993 With Comparative Totals For The Year Ended December 31, 1992 MSA SAC 1989 1990 1991 Construction Sealcoating Revolving Construction Construction Construction Revenue: General property taus: Current and delinquent Tax increments Intergovernmental: State: MSA construction Other Federal: CDBG Other County: Other Metropolitan Waste Control Commission $33,456 Special assessments: Current and delinquent $1,197 $10,749 Prepayments 4,795 139,506 13,360 Penalties and interest 64 31 Interest an investments 2,412 6,854 $25,458 $11,067 $781 Refunds and reimbursements 18,920 Park dedication fees - Total revere 8,468 176,060 25,458 11,067 781 46 816 Expenditures: General government: Current Personal services Contractual services Supplies Capital outlay: General government Public safety - Highways and streets - 109,824 Pules, recreation and forestry - - Construction costs 68,451 56 75,898 Total expenditures 0 109,824 0 68,451 56 75,898 Revenue over (under) expenditures 8,468 66,236 25,458 (57 ,384) 725 (29,082) Other flnandng sources (uses): Operating transfer from General Fund Operating transfer from Debt Service Funds Operating transfer from Capital Project Funds 388,965 Operating transfer from Enterprise Fund Operating transfer from Agency Fund Operating transfer to General Fund Operating transfer to Special Revenue Fund Operating transfer to Capital Project Funds Operating transfer to Enterprise Funds Bond proceeds Total other financing sources (uses) 0 0 0 0 0 388,965 Net Increase (decrease) In fund balance 8,468 66,236 25,458 (57 .384) 725 359,883 Fund balance (defldt) - January 1 37,100 90,811 431,816 224,640 73,226 (208,745) Residual equity transfer (73,951) Fund balance (defdt) - December 31 $45,568 $157,047 $457,274 $167,256 $0 $151,138 limme Statement 13 Page 2of2 Industrial Apollo Tax Increment Tax Increment Tax Increment Tax Increment 1993 1994 Palk Drive Financing Financing Financing Financing Totals Construction Construction Construction Construction 1 -1 1 -2 1 -3 1-4 1993 1992 $191,415 487 191 902 84 55 $180,628 $92,079 272,707 349,322 $395,297 406,639 646,251 1,750 1,750 7,000 1,010,007 47,379 14,008 $0 1 414 054 228 007 106 087 $0 52,601 12,888 7,000 1,010,007 33,456 257 ,369 83,604 1,887,442 1,282,240 4,563 3,271 340,102 194,061 82,236 116,940 56,483 42,950 $0 4,412 ,359 2,731 ,532 16,083 11,812 3,792 2,062 6,930 70,215 75,415 0 19,140 38,473 9,829 101,000 84,109 226,905 66,810 67,040 41,344 5,968 21,775 775 917,729 - 1,197,608 2,008,213 5,968 21775 775 917 729 3 792 2 062 0 6 930 1717,324 2,316,672 185,934 (21,775) (775) 496,325 224 215 104 025 0 (6,930) 2 695 035 414 860 ... 2,898 11,899 21 ,532 2,946 17,893 492,872 40,103 132,175 96,712 25,381 - (4,801) (1,074) (1,074) (3,172) (9,484) (8,409) (492,872) (40,103) (93,238) - 150,319 385,205 0 0 0 0 (9,484) (9,483) 17 893 0 233 192 493 590 185,934 (21,775) (775) 496,325 214,731 94,542 17,893 (6,930) 2,928,227 908,450 (170,092) 0 (73,901) (117,156) 740,155 200,418 (17,893) (13,399) 4,681,902 3,773,452 (820,128) 815,842 ($21775) ($74, 676) $379,169 $954, 886 $294, 960 $0 ($20,329) 86,790,001 $4,681,902 CITY OF LINO LAKES, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET December 31, 1993 With Comparative Totals For December 31,1992 Statement 14 Assets Gas Totals Water Sewer Utility 1993 1992 Current assets: Restricted investments $40,273 $40,273 $102,675 Cash and cash equivalents 74,499 $6,919 81,418 2,818 Accounts receivable 89,179 103,092 192,271 146,517 Due from other governmental units 145 3,980 4,125 13,594 Prepaid items 1,412 20,252 21,664 14,406 Total current assets 205,508 134,243 $0 339,751 280,010 Fixed assets: Well 18,500 18,500 18,500 Buildings 48,690 48,690 48,690 Equipment 24,462 23,076 47,538 47,538 "' Water and sewer system 5,943,951 8,110,130 14,054,081 6,949,185 Total fixed assets 6,035,603 8,133,206 14,168,809 7,063,913 Less: Allowance for depreciation (394,088) (533,203) (927,291) (674,470) Subtotal 5,641,515 7,600,003 0 13,241,518 6,389,443 Acquisition costs - gas utility 2,375 2,375 2,375 Construction in progress 0 989,804 Net fixed assets 5,641,515 7,600,003 2,375 13,243,893 7,381,622 mat Total assets $5,847,023 $7,734,246 $2,375 $13,583,644 $7,661,632 Liabilities and Fund Equity Current Liabilities: Cash overdraft $2,424 $2,424 $2,424 Accounts payable $4,255 $3,306 7,561 9,495 Salaries payable 521 472 993 710 Contracts payable 0 43,190 Due to other governmental units 3,437 31,040 34,477 23,730 Accrued interest payable 27,735 27,735 41,732 Total current liabilities 35,948 34,818 2,424 73,190 121,281 Long Term Liabilities: Bonds payable - long term 1,060,000 1,060,000 1,060,000 Total liabilities 1,095,948 34,818 2,424 1,133,190 1,181,281 Fund equity: Contributions - net 4,632,448 7,595,706 12,228,154 6,384,363 Retained earnings (deficit) 118,627 103,722 (49) 222,300 95,988 Total fund equity 4,751,075 7,699,428 (49) 12,450,454 6,480,351 AMMO r AMOR Total liabilities and fund equity $5,847,023 $7,734,206 $2,375 $13,583,644 $7,661,632 CITY OF LINO LAKES, MINNESOTA ENTERPRISE FUND COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1993 With Comparative Totals For The Year Ended December 31,1992 Statement 15 Gas Totals Water Sewer Utility 1993 1992 Operating revenue: Charges for services $177,536 $291,062 $468,598 $371,510 Other operating revenue 55,863 5,237 61,100 57,199 Total operating revenue 233,399 296,299 $0 529,698 428,709 '" Operating expenses: Personal services 47,796 43,942 91,738 91,300 Materials and supplies 79,808 1,192 81,000 55,295 Contractual services 11,502 19,983 31,485 22,853 Repair and maintenance 8,297 9,702 17,999 22,569 MWCC sewer charges 168,891 168,891 111,897 Depreciation: Purchased assets 18 713 731 1,073 Contributed assets 94,984 157,108 252,092 144,271 Utilities 9,893 7,900 17,793 12,590 Other 12,135 13,424 25,559 25,432 Total operating expenses 264,433 422,855 0 687,288 487,280 Net income (loss) from operations (31,034) (126,556) 0 (157,590) (58,571) Other income (expense): Interest on investments 6,251 377 6,628 10,250 Maintenance agreement - MWCC 7,294 7,294 13,061 Area and unit charges 132,175 132,175 96,712 - Bond interest (74,950) (74,950) (57,632) Paying agent fees (400) (400) Total other income (expense) 63,076 7,671 0 70,747 62,391 Net income (loss) before operating transfers 32,042 (118,885) 0 (86,843) 3,820 Operating transfers: Operating transfer from Capital Project Funds 93,238 93,238 Operating transfer to Capital Project Funds (132,175) (132,175) (96,712) Total operating transfers (38,937) 0 0 (38,937) (96,712) Net income (loss) (6,895) (118,885) 0 (125,780) (92,892) Credit arising from transfer of depreciation to contributions from property owners 94,984 157,108 252,092 144,271 Retained earnings (deficit) - January 1 30,538 65,499 (49) 95,988 44,609 -- Retained earnings (deficit) - December 31 $118,627 $103,722 ($49) $222,300 $95,988 CITY OF LINO LAKES, MINNESOTA ENTERPRISE FUND COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31,1993 With Comparative Totals For The Year Ended December 31,1992 Statement 16 Water and Gas Totals Sewer Utility 1993 1992 Cash flows from operating activities: Operating income (loss) ($157,590) ($157,590) ($58,571) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation 252,823 252,823 145,344 Change in assets and liabilities: Decrease (increase) in receivables (36,285) (36,285) (44,650) Decrease (increase) in prepaid items (7,258) (7,258) (12,212) Decrease (increase) in inventory 0 5,642 Increase (decrease) in payables 34,094 ___131,0_194 35,264 Net cash flows from operating activities 17,596 $0 17,596 70,813 Cash flows from noncapital financing activities: Maintenance agreement - MWCC 7,294 7,294 13,061 Collection of area and unit charges 132,175 132,175 96,712 Operating transfer from Capital Project Funds 3,891 3,891 Operating transfer to Capital Project Funds (132,175) , (132,175) (96,712) Net cash flows from noncapital financing activities 11,185 0 11,185 13,061 Cash flows from capital and related financing activities: Bond proceeds 0 1,044,100 Interest and paying agent fees on revenue bonds (89,347) (89,347) Operating transfer from Capital Project Funds 89,347 89,347 Construction in progress (19,211) (19,211) (841,468) Net cash flows from capital and related financing activities (19,211) 0 (19,211) 202,632 Cash flows from investing activities: Interest on investments 6,628 6,628 10,250 Net increase in cash and cash equivalents 16,198 0 16,198 296,756 Cash and cash equivalents - January 1 105,493 (2,424) 103,069 (193,687) Cash and cash equivalents - December 31 $121,691 ($2,424) $119,267 $103,069 Noncash investing, capital and financing activities: - Water and Sewer lines in the amount of $6,095,881 and $724,999 were contributed to the Water and Sewer Fund in 1993 and 1992 respectively. JEWS lay Mall 1, CITY OF LINO LAKES, MINNESOTA AGENCY FUNDS COMBINING BALANCE SHEET December 31, 1993 With Comparative Totals For December 31,1992 Statement 17 Pending Totals Contractors Assessment Investment Deferred December 31, Deposits Deposits Fund Compensation 1993 1992 Assets - Cash and investments $126,171 $35,770 $161,941 $195,154 Assets with deferred compensation plan administrator $280,991 280,991 224,960 Accrued interest on investments $113,802 113,802 89,650 Due from developers 90,449 90,449 122,112 Total assets Liabilities $216,620 $35,770 $113,802 $280,991 $647,183 $631,876 Cash overdraft $113,793 $113,793 $89,641 Accounts payable 9 9 9 Due to developers $216,620 $35,770 252,390 317,266 Deferred compensation payable $280,991 280,991 224,960 Total liabilities $216,620 $35,770 $113,802 $280,991 $647,183 $631,876 CITY OF LINO LAKES, MINNESOTA AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For The Year Ended December 31, 1993 Statement 18 Contractors deposits: Assets Cash and investments Due from developers Total assets Liabilities Due to developers Pending Assessment Deposits: Assets Cash and investments Liabilities Due to developers Investment Fund: Assets Accrued interest on investments Liabilities Cash overdraft Accounts payable Total liabilities Deferred Compensation: Assets Assets with plan administrator Liabilities Deferred compensation payable Totals -All Trust and Agency Funds: Assets Cash and investments Assets with plan administrator Accrued interest on investments Due from developers Total assets Liabilities Cash overdraft Accounts payable Due to developers Deferred compensation payable Total liabilities Balance January 1, 1993 Additions Deletions Balance December 31, 1993 $51,104 $799,516 $724,449 $126,171 122,112 90,449 122,112 90,449 $173,216 $889,965 $846,561 $- 2 6,620 $173,216 $216,620 $173,216 $216,620 $:=144,0 $1,072,498 $1,180,778 $35,770 $144,050 $1 $1,272,472 $35,770 $89,650 $113,802 $89,650 $113,802 $89,641 $89,641 $65,489 $113,793 9 9 9 9 $89,650 $89,650 $65,498 $113,802 . • 4 .< : $224,960 $224,960 $56,452 $56,452 $195,154 $1,872,014 224,960 56,452 89,650 113,802 122,112 90,449 $631,876 $2,132,717 $89,641 9 317,266 224,960 $631,876 $89,641 9 1,380,812 56,452 $1,526,914 $421 $421 $280,991 $280,991 $1,905,227 $161,941 421 280,991 89,650 113,802 122,112 90,449 $2,117,410 $647,183 $65,489 9 1,445,688 421 $1,511,607 $113,793 9 252,390 280,991 $647,183 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS For the Year Ended December 31, 1993 .— (Unaudited) WINN Statement 19 Balance Balance January 1, December 31, 1993 Additions Deletions 1993 -- Land $310,010 $310,010 Wells 6,216 6,216 Buildings and improvements 625,950 $10,873 636,823 - Furniture and equipment 1,402,275 275,225 1,677,500 Totals $2,344,451 $286,098 $0 $2,630,549 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF GENERAL LONG - TERM DEBT December 31, 1993 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, 1993 1992 $4,086 ,918 $3,364,458 5,857,013 7,920,779 $9,943,931 $11,285,237 Bonds payable: General Obligation Bonds: 1989A Equipment Certificates $60,000 $120,000 1989B Equipment Certificates 120,000 175,000 1990A Equipment Certificates 36,000 53,500 1991A Equipment Certificates 45,000 90,000 1992 Equipment Certificates 150,000 Public Project Revenue Bonds - 1990A 1,115,000 1,115,000 Total General Obligation Bonds 1,526,000 1,553,500 General Obligation Bonds with special assessments pledged: G. O. Improvement Bonds of 1988A 655,000 800,000 G. O. Temporary Improvement Bonds of 1990B 1,015,000 G. O. Improvement Bonds of 1991A 4,260,000 4,260,000 G. O. Improvement Bonds of 1992A 3,490,000 3,640,000 Total General Obligation Bonds with special assessments pledged 8,405,000 9,715,000 Total bonds payable 9,931,000 11,268,500 Assessments payable on City property 10,510 10,510 Capital lease: Phone system 734 Phone voice mail 2,421 5,493 Total general long -term debt $9,943,931 $11,285,237 SUPPLEMENTARY FINANCIAL INFORMATION CITY OF LINO LAKES, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS December 31, 1993 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 1991A Equipment Certificates 4.95 - 5.40 12/19/91 1/1/95 1992 Equipment Certificates 3.75 - 4.15 1/1/93 2/1/95 Public Project Revenue Bonds - 1990A 7.12 10/1/90 2/1/10 Total General Obligation Bonds Special Assessment Bonds: G. O. Improvement Bonds of 1988A 6.43 10/1/88 2/1/97 G. O. Temporary Improvement Bonds of 1990B 6.10 8/1/90 8/1/93 G. 0. Temporary Improvement Bonds of 1991A 5.83 8/1/91 8/1/94 G. O. Improvement Bonds of 1992A 6.51 4/1/92 2/1/06 Total General Improvement Bonds with special assessments pledged Revenue Bonds: G. O. Water Revenue Bonds of 1992B Total - all bonds 6.67 4/1/92 2/1/08 Capital lease: Phone system 14.92 5/89 3/93 Phone voice mail 6.00 11/92 9/94 Total indebtedness MmEr Inmw Iamb WIMP Exhibit 1 Prior Years Principal Interest Original Payable 1993 Payable Due Due Issue Payments 1/1/93 Issued Payments 12/31/'93 In 1994 In 1994 $300,000 $180,000 $120,000 $60,000 $60,000 $60,000 $2,295 275,000 100,000 175,000 55,000 120,000 60,000 5,955 88,500 35,000 53,500 17,500 36,000 17,500 2,395 135,000 45,000 90,000 45,000 45,000 45,000 2,430 $150,000 150,000 100,000 6,310 1,115,000 1,115,000 1,115,000 77,275 1,913,500 360,000 1,553,500 150,000 177,500 1,526,000 282,500 96,660 1,160,000 360,000 800,000 145,000 655,000 155,000 38,572 1,015,000 1,015,000 1,015,000 0 4,260,000 4,260,000 4,260,000 4,260,000 238,560 3,640,000 3,640,000 150,000 3,490,000 150,000 209,320 10,075,000 360,000 9,715,000 0 1,310,000 8,405,000 4,565,000 486,452 1,060,000 1,060,000 1,060,000_ 25,000 66,147 13,048,500 720,000 12,328,500 150,000 1,487,500 10,991,000 4,872,500 649,259 9,249 8,515 734 734 0 6,253 760 5,493 3,072 2,421 2,421 61 $13,064,002 $729,275 $12,334,727 $150,000 $1,491,306 $10,993,421 $4,874,921 $649,320 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF DEFERRED TAX LEVIES December 31, 1993 Exhibit 2 Public Project G.O. Year of Equipment Equipment Equipment Equipment Equipment Revenue Improvement Levy/ Certificates Certificates Certificates Certificates Certificates Bonds Bonds Collection of 1989A of 1989B of 1990A of 1991 A of 1992 of 1990A of 1992A Total 1993/1994 $67,819 $67,190 $20,889 349,801 3107,389 $313,088 1994/1995 20,726 3111,626 105,735 $308,634 546,721 - 1995/1996 54,679 104,055 323,580 482,314 1996/1997 118,112 347,577 465,689 1997/1998 125,882 358,583 484,465 - 1998/1999 122,417 357,328 479,745 1999 /2000 145,150 354,861 500,011 2000/2001 139,834 353,352 493,186 - 2001/2002 134,479 358,981 493,460 200003 129,045 367,953 496,998 2003/2004 149,783 369,724 519,507 2004/2005 142,433 348,731 491,164 2005/2006 134,978 134,978 2006/2007 127,523 127,523 2007/2008 120,015 120,015 2008 /2009 112,508 112,508 - $67,819 $67,190 $41,615 $49,801 $166,305 $2,019,338 $3,849,304 $6,261,372 CITY OF LINO LAKES, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY December 31, 1993 Equipment Equipment Equipment Equipment Cetificates Cetificates Cetificates Cetificates of 1989A of 1989B of 1990A of 1991A Bonds payable $60,000 $120,000 $36,000 $45,000 Future interest payable 2,295 7,950 3,635 2,430 Totals $62,295 $127,950 $39,635 $47,430 Payments to maturity: 1994 $62,295 $65,955 $19,895 $47,430 1995 61,995 19,740 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 $62,295 $127,950 $39,635 $47,430 Exhibit 3 Vow G.O. G.O. Public G. 0. Temporary G. 0. Water Project Equipment Improvement Improvement Improvement Revenue Revenue Cetificates Bonds Bonds Bonds Bonds Bonds of 1992 of 1988 A of 1991A of 1992A of 1992B of 1990A Totals $150,000 $655,000 $4,260,000 $3,490,000 $1,060,000 $1,115,000 $10,991,000 8,385 91,554 238,560 1,656,453 623,231 846,815 3,481,308 $158,385 $746,554 $4,498,560 $5,146,453 $1,683,231 $1,961,815 $14,472,308 - • - $106,310 $193,572 $4,498,560 $359,320 $91,147 $77,275 $5,521,759 52,075 178,584 352,195 104,565 101,488 870,642 183,108 393,195 112,233 99,900 788,436 191,290 402,005 109,545 98,294 801,134 - 418,940 111,589 111,188 641,717 423,850 108,358 118,238 650,446 - 417,345 114,709 114,913 646,967 - 409,743 115,505 135,706 660,954 401,080 115,900 130,625 647,605 401,080 115,900 125,488 642,468 - 399,460 115,495 120,275 635,230 396,180 114,675 139,150 650,005 372,060 118,310 132,100 622,470 - 116,390 125,000 241,390 118,910 117,875 236,785 - 110,725 110,725 103,575 103,575 $158,385 $746,554 $4,498,560 $5,146,453 $1,683,231 $1,961,815 $14,472,308 CITY OF LINO LAKES, MINNESOTA CONSTRUCTION WORK IN PROCESS December 31, 1993 Exhibit 4 Description Land Expended Easements Prior Contractor Engineering and Other Total 1993 Years Fund 406: Area and Unit Sewer Extension $15,604 $8,781 $24,385 $24,385 Fund 550: Interim Construction Highway 49 and Lake Drive $152,282 22,344 174,626 78,626 $96,000 Birch Street Underpass 85,825 17,134 1,638 104,597 * 498 104,099 Forjay Building 839 2,608 3,447 3,447 Total Fund 550 86,664 169,416 26,590 282,670 82 ,571 200,099 Fund 551: Industrial Park Construction Industrial Park 881 73,795 74,676 775 73,901 Fund 552: Apollo Drive Construction Apollo Drive 1,297,047 317,261 66,828 1,681,136 917,729 763,407 Fund 567: 1989 Construction Sunrise Meadows 685,734 153,986 46,459 886,179 1,655 884,524 Reshanau fourth and fifth addition 365,129 93,562 5,648 464,339 66,796 397,543 Total Fund 567 1,050,863 247,548 52,107 1,350,518 68,451 1,282,067 Fund 569: 1990 Construction 2nd Avenue 599,971 191,478 51,820 843,269 * 56 843,213 Fund 570: 1991 Construction Pine Ridge 462,339 102,244 24,342 588,925 5,523 583,402 Brandywood 581,202 170,270 41,992 793,464 (8,822) 802,286 Pheasant Hills 497,447 159,580 57,484 714,511 15,549 698,962 Wenzel Farms 818,366 144,589 64,436 1,027,391 6,735 1,020,656 Reshanau Lake Trunk 871 ,598 263,339 100,403 1,235,340 * 56,913 1,178,427 Total Fund 570 3,230,952 840,022 288,657 4,359 631 75,898 4,283,733 .am r Fund 571: 1993 Construction Wenzel Farms 3rd Addition 17,171 17,171 1,215 15,956 Brandywood 2nd Additon 124,325 34,269 158,594 4,458 154,136 Pheasant Hills 2nd Addition 295 295 295 Total Fund 571 124,325 51,735 0 176,060 5,968 170,092 .. Fund 572: 1994 Construction Country Lake Estates 21,775 21,775 21,775 Totals $6,427,201 $1,818,341 $568,578 $8,814,120 81,197,608 $7,616,512 * Completed Project CITY OF LINO LAKES, MINNESOTA INSURANCE IN FORCE December 31, 1993 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 ($500 Deductible) Property: Buildings and Contents 3,773,100 Valuable Papers ($500 Deductible) 50,000 Faithful Performance Blanket Bond 100.E Storage Tank Liability 100,000 — Mobile Equipment ($500 Deductible) 372,890 EDP - Electronic Equipment ($500 Deductible) 106,452 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 LEVJFS AND TAX RATES Exhibit 6 Tax Capacity Tax Capacity Values Values 1993/1994 1992/1993 Taxable valuations: Total $5,506,951 $4,867,812 Fiscal disparities: Distribution 1,221,693 1,208,758 Contribution (251,282) (254,229) Less: Captured Tax Increment Value (256,841) (244,419) Totals $6,220,521 $5,577,922 Tax Tax Certified Capacity Certified Capacity Levy Rate Levy Rate Taxes levied: Revenue $1,955,826 25.508 $1,776,369 25.169 Bond and interest 313,088 4.153 297,618 4.217 Totals Certified levy amount is before HACA reduction. $2,268,914 29.661 $2,073,987 29.386 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF SOURCES AND USES OF FUNDS _ FOR TAX INCREMENT HOUSING DISTRICT #1 -1 December 31, 1993 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 $680,504 $180,628 1,543,122 Interest on investments 66,272 47,379 (113,651) Total sources of funds 3,604,254 746,776 228,007 2,629,471 Uses of funds: Public improvements 974,094 974,094 Administrative 5,035 3,792 (8,827) - 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 Transfer to other funds 1,586 9,484 (11,070) Total uses of funds 3,570,498 6,621 13,276 3,550,601 Funds remaining (deficit) $33,756 $740,155 $214,731 ($921,130) CITY OF LINO LAKES, MINNESOTA SCHEDULE OF SOURCES AND USES OF FUNDS FOR TAX INCREMENT HOUSING DISTRICT #1 -2 December 31, 1993 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 $208,130 $92,079 (300,209) Interest on investments 6,177 14,008 (20,185) Total sources of funds 975,000 214,307 106,087 654,606 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 12,303 2,062 17,135 Bond discount 20,E 20,000 Capitalized interest 200,000 200,000 Transfer to other funds 1,586 9,483 (11,069) Total uses of funds 975,000 13,889 11,545 949,566 Funds remaining (deficit) $0 $200,418 $94,542 ($294,960) CITY OF LINO LAKES, MINNESOTA SCHEDULE OF SOURCES AND USES OF FUNDS FOR TAX INCREMENT FINANCING DISTRICT #1 -3 — December 31, 1993 Exhibit 9 Accounted -- Amended for in Current Amount Budget Prior Years Year Remaining Sources of funds: Tax increment collections $259,260 $259,260 Transfer In $17,893 (17,893) Total sources of funds 259,260 $0 17,893 241,367 Uses of funds: Land aquisition 200,000 200,000 Administrative 22,000 17,893 4,107 Total uses of funds 222,000 17,893 0 204,107 — Funds remaining (deficit) $37,260 ($17,893) _ $17,893 $37,260 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF SOURCES AND USES OF FUNDS FOR TAX INCREMENT FINANCING DISTRICT #1-4 December 31, 1993 Exhibit 10 Accounted Amended for in Current Amount Budget Prior Years Year Remaining Sources of funds: Bond proceeds $1,950,000 $1,950,000 Refunds and reimbursements $18,889 (18,889) Total sources of funds 1,950,000 18,889 $0 1,931,111 Uses of funds: Land acquisition 400,000 400,000 Public improvements 1,050,000 1,050,000 Administrative 100,000 32,288 6,930 60,782 Bond discount 40,000 40,000 Capitalized interest 360,000 360,000 Total uses of funds 1,950,000 32,288 6,930 1,910,782 Funds remaining (deficit) $0 ($13,399) ($6,930) $20,329 AIIMMII r AMER