HomeMy WebLinkAboutComprehensive Annual Financial Report 12/31/1996COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LINO LAKES, MINNESOTA
timer
FOR THE YEAR ENDED
DECEMBER 31, 1996
Wmor
Prepared By:
Finance Department
Mary Vaske
Finance Director
INV
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
L INTRODUCTORY SECTION
Principal City Officials 3
Organization Chart 5
Letter of Transmittal 7
Certificate of Achievement for Excellence in Financial Reporting 17
II. FINANCIAL SECTION
Independent Auditor's Report 21
General Purpose Financial Statements
Combined Balance Sheet - All Fund Types and Account Groups Statement 1 24
Combined Statement of Revenue, Expenditures and Changes in
Fund Balance - All Governmental Fund Types Statement 2 26
Combined Statement of Revenue, Expenditures and Changes in
Fund Balance - Budget and Actual - General Fund Statement 3 27
Combined Statement of Revenue, Expenses and Changes in Retained
Earnings - All Proprietary Fund Types Statement 4 28
Combined Statement of Cash Flows - All Proprietary Fund Types Statement 5 29
Notes to Financial Statements 31
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number,
Combining, Individual Fund and Account Group Financial Statements
General Fund:
Balance Sheet Statement 6 55
Statement of Revenue, Expenditures and Changes in
Fund Balance - Budget and Actual Statement 7 56
Special Revenue Funds:
Combining Balance Sheet Statement 8 64
Combining Statement of Revenue, Expenditures and Changes in
Fund Balance Statement 9 65
Debt Service Funds:
Combining Balance Sheet Statement 10 69
Combining Statement of Revenue, Expenditures and Changes
in Fund Balance Statement 11 70
Capital Project Funds:
Combining Balance Sheet Statement 12 74
Combining Statement of Revenue, Expenditures and Changes
in Fund Balance Statement 13 78
Enterprise Funds:
Combining Balance Sheet Statement 14 84
Combining Statement of Revenue, Expenses and Changes in
Retained Earnings Statement 15 85
Combining Statement of Cash Flows Statement 16 86
Agency Funds:
Combining Balance Sheet Statement 17 88
Combining Statement of Changes in Assets and Liabilities Statement 18 89
General Fixed Asset Account Group:
Schedule of General Fixed Assets - By Source Statement 19 92
Schedule of General Fixed Assets - By Function and Activity Statement 20 93
Schedule of Changes in General Fixed Assets - By Function and
Activity Statement 21 94
low
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
General Long -Term Debt Account Group:
Schedule of General Long -Term Debt Statement 22 96
Supplementary Financial Information
Combined Schedule of Indebtedness Exhibit 1 98
Schedule of Deferred Tax Levies Exhibit 2 100
Debt Service Payments to Maturity - All Bonds Exhibit 3 101
Construction Work in Process Exhibit 4 102
Insurance in Force Exhibit 5 103
Taxable Valuations, Tax Levies and Tax Rates Exhibit 6 104
Schedule of Sources and Uses of Funds:
Tax Increment Housing District #1 -1 Exhibit 7 105
Tax Increment Housing District #1 -2 Exhibit 8 106
Tax Increment Financing District #1 -4 Exhibit 9 107
_ Tax Increment Financing District #1 -5 Exhibit 10 108
Tax Increment Financing District #1 -6 Exhibit 11 109
Tax Increment Financing District #1 -7 Exhibit 12 110
Tax Increment Financing District #3 -1 Exhibit 13 111
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
III. STATISTICAL SECTION
General Fund:
Expenditures By Function - Last Ten Fiscal Years Table 1 114
General Fund:
Revenue By Source - Last Ten Fiscal Years Table 2 115
Property Tax Levies and Collections - Last Ten Fiscal Years Table 3 116
Special Assessment Levies and Collections - Last Ten Fiscal Years Table 4 117
Ratio of Annual Debt Service Expenditures for General Bonded
Debt to Total General Expenditures - Last Ten Fiscal Years Table 5 119
Assessed and Estimated Actual Value of Taxable Property -
Last Ten Fiscal Years Table 6 120
Property Tax Rates - Direct and Overlapping Government -
Last Ten Fiscal Years Table 7 122
Ratio of Net Bonded Debt to Assessed Value and Net Bonded
Debt Per Capita - Last Ten Fiscal Years Table 8 123
Computation of Direct and Overlapping Debt Table 9 124
Computation of Legal Debt Margin Table 10 125
Schedule of Revenue Bond Coverage - Water and Sewer Funds -
Last Ten Fiscal Years Table 11 126
Principal Taxpayers Table 12 127
Construction Permits and Bank Deposits - Last Ten Fiscal Years Table 13 128
Demographic Statistics Table 14 129
Misellaneous Statistics Table 15 130
I.
INTRODUCTORY
SECTION
1
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 1996
Elected Officials
Mayor:
John Landers
Council Members:
John Bergeson
,. Sally Kuether
Andy Neal
Chris Lyden
Term Expires
December 31, 1997
December 31, 1997
December 31, 1997
December 31, 1999
December 31, 1999
Appointed Personnel
City Administrator Randall Schumacher
Finance Director Mary Vaske
Public Works Director David Ahrens
Police Chief David Pecchia
Community Development Director Brian Wessel
Parks and Recreation Martin Aslesen
Building Official Pete Kluegel
Assistant City Administrator Daniel Tesch
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April 14, 1997
—" Honorable Mayor, Members of the City
Council, and City Administrator
City of Lino Lakes, Minnesota
The Comprehensive Annual Financial Report of the City of Lino Lakes, Minnesota, is
_ submitted herein for the year ended December 31, 1996. The City is responsible for the
accuracy and completeness of the presentation including all disclosures. The Finance
Department believes that the data presented is accurate in all material aspects and presents the
financial position and results of operations of the City in a fair manner.
law
The organization, form and contents of this report were prepared in accordance with the
standards prescribed by the Government Finance Officer's Association of the United States and
Canada, the American Institute of Certified Accountants, the State Auditor's Office, the State
of Minnesota and the City Charter.
The Comprehensive Annual Financial Report consists of three parts:
a. An Introductory Section - contains the letter of transmittal, table of contents, elected
and administrative officials and organizational chart.
b. A Financial Section - contains the independent auditors' report, notes to the financial
statements, combined financial statements and the combining and individual fund and
account group statements and supplemental schedules.
c. A Statistical Section - contains various unaudited tables showing the financial trends
of the City and miscellaneous statistics.
I believe that the data presented is accurate in all material aspects. It is presented in a manner
that fairly reflects the financial operations of the City and is easily read for maximum
understanding of the financial manners presented. The notes are considered an essential part in
providing insight into the information presented.
1189 Main Street • Lino Lakes, Minnesota • 55014
Phone: 612 - 464 -5562 • Fax: 612 - 464 -4568
7
— Reliable financial information requires an establishment of accounting records that are
adequately supported by internal accounting controls. The City believes that existing internal
accounting controls are adequate to provide reasonable assurance that City assets are
—
safeguarded against loss from unauthorized use or disposition and that the financial records are
reliable for the preparation of the financial statements.
—
The City Charter grants the City Council full authority over the financial matters of the City.
The City Administrator has the responsibility of submitting the annual budget to the City
—
Council. The budget is adopted by resolution and the amounts can not increase beyond the
estimated receipts except to the extent that actual receipts exceed the estimate.
THE REPORTING ENTITY
In accordance with the Governmental Accounting Standards Board requirements, the financial
reporting entity includes all funds and account groups of the City as well as all of its
component units. Component units are legally separate entities for which the primary
government is financially accountable.
Blended component units, although legally separate entities, are in substance, part of the
primary government's operations and are included as part of the primary government.
Accordingly, the Economic Development Authority is reported as a Special Revenue Fund of
the primary government.
The City provides a full range of municipal services. These services include: general
government, public safety (police & fire), public works (streets , engineering & planning),
parks and recreation, public improvements, sanitary and storm sewer, and water.
ECONOMIC CONDITION AND OUTLOOK
The City of Lino Lakes is a growing community within the County of Anoka. It covers an area
of 33 square miles and has a population in excess of 14,000. Within the City's borders lies the
2,550 acre Rice Creek Chain of Lakes Regional Park. Access to St. Paul and Minneapolis is
provided by I -35W and I -35E.
The economic development effort was established in 1993 by the City Council to cover a five
_ year plan. Three years into the plan, the City has acquired seven new light industrial projects in
the Apollo Business Park on I -35W and two projects in the Clearwater Creek Development
Center on I -35E. The establishment of growing manufacturing companies in Lino Lakes is
helping stabilize the City's tax base by bringing in approximately $14 million in new market
value, as well as adding to the employment market within the City.
With the many wetlands and regional parks, environmental issues are important in this City.
Future development is deemed to include equal consideration of economic development and
-- environmental issues by establishing criteria to evaluate the desirability of each economic
development opportunity.
9
MAJOR INITIATIVES
In 1996, a new million gallon water tower is being constructed on the east side of the City to
serve the Clearwater Creek Development Center and new residential areas to the south. The
City is working with Anoka County on a joint effort to realign Otter Lake Road through the
business park, which will open up the park for additional commercial and industrial
development.
Commercial development in Lino Lakes has been the focus of a city- initiated development
called the "Village" on I -35W and Lake Drive. This innovative mixed -use town center will
include professional buildings, civic facilities, commercial development and a mix of housing
types. The goal of the City is to base this development on many principles of the Metropolitan
Council's "livable communities" concept.
The first phase of the "Village" will include a new City police station, a bank, a Fairview
Health Services clinic, and potentially a Centennial School District Early Childhood Education
Center.
Extending municipal utilities is a top priority, as the State of Minnesota is requiring stricter
laws for well and septic systems. The City adopted an ordinance to require all septic systems
to be inspected and pumped every two years to account for all systems within the City. The
Engineering Department is working diligently on planning for future utility extensions to
promote the growth of both residential and commercial development.
A five year Capital Improvement Plan began in late fall, with completion expected in early
1997. This plan has not been updated since 1990. An annual update is expected in the future.
FINANCIAL INFORMATION
The City's policy is to invest all available moneys at competitive rates in accordance with
Minnesota law. Investments are made by minimizing credit and market risks while maintaining
a competitive yield. Funds are invested in certificates of deposit, commercial paper and U.S.
government agencies. Cash is pooled in one account to provide maximum return.
10
Y
General Fund
The General Fund accounts for all revenues and expenditures necessary to provide basic
governmental operations of the City.
General Fund revenues totaled $4,627,532 in 1996 compared to $3,772,335 in 1995. The
breakdown of revenues is shown in the following table:
Percent
1996 1995 Change
General property taxes S2,327,048 $1,941,415 19.86%
Licenses and permits 788,480 544,267 44.87%
Intergovernmental revenues 816,794 738,652 10.58%
Charges for services 308,262 241,393 27.70%
Fines and forfeits 86,158 93,861 (8.21 %)
Miscellaneous 300,790 212,747 41.38%
Total
$4,627,532 $3,772,335 22.67%
The increase in General property taxes was due to the increase market value of the City, as the
tax rate was left unchanged from 1995. Licenses and permits increased substantially due to
building permits issued for a new school, a church, and an addition to the Lino Lakes
Correctional Facility. Fines and forfeits decreased because of the down sizing of enforcement
on Spring road weight restrictions. Miscellaneous increases are attributed to revenues from
new developments and an administrative fee on the issuance of bonds.
General fund expenditures totaled $3,966,738 in 1996 compared to $3,557,038 in 1995. The
breakdown of expenditures is shown in the following table.
Percent
1996 1995 Change
General government S1,289,751 $ 1,173,047 9.95%
Public safety 1,446,985 1,265,064 14.38%
Public works 694,455 700,873 (0.92 %)
Parks and recreation 535,547 418,054 28.10%
Total
$3,966,738 $3,557,038 11.52%
— The increase in Public safety is attributed to the addition of two new police officers, and the
purchase of two squad cars that in the past have been purchased with equipment certificates.
Parks and recreation increased with the purchase of equipment to help maintain the growth of
park land throughout the City
11
The fund balance of the General fund continues to grow as shown below:
Fund Balance
Expenditures of Budget Percent
1990 S2,155,051 S1,030,053 47.80%
1991 2,268,639 1,169,624 51.56%
1992 2,552,835 1,265,236 49.56%
1993 2,829,202 1,406,296 49.71%
1994 3,169,862 1,756,659 55.42%
1995 3,551,957 1,870,934 52.67%
1996 3,966,738 2,086,231 52.59%
The fund balance for the year increased $636,794.
Special Revenue Funds
Economic Development Authority - this fund accounts for personal expenses of the City
Council when acting as the Economic Development Authority.
Community Development Block Grant - accounts for expenditures associated with funds
allocated through Anoka County from the Federal Government to fund allowable projects.
Program Recreation - this fund accounts for the activities of the Recreation Department for
self - supporting programs.
Debt Service Funds
Improvement Bonds - these funds account for debt service payments made on general
obligation debt issued for local improvement projects.
Certificates of Indebtedness - these funds account for debt service payments made on debt
issued to finance capital purchases. These certificates are financed internally.
Public Project Revenue Bonds - established to account for debt service payments related to the
construction of the City's fire hall.
Capital Project Funds
Closed Bond Fund - established to account for all excess bond receipts.
Dedicated Parks - accounts for revenues and expenditures for the acquisition and construction
of park projects. Playground equipment was purchased for Birchwood Acres Park with these
funds in 1996.
12
Area and Unit Charges - accounts for water and sewer area assessments to be used for the
construction of City utility infrastructure.
Surface Water Management - established to help fund the costs associated with surface water
issues and planning.
Apollo Business Park - accounts for the receipts from the sale of property within the park and
for costs associated with the acquisition.
Town Center Project - established to account for costs associated with the creation of the
"Village ".
Tax Increment - established to account for projects financed with tax increments.
Enterprise Funds
Water Fund - accounts for the operations of the municipal water system. The following table
illustrates the operations:
Operating revenues
Operating expenses (excluding depreciation)
Operating income
Percent
1996 1995 Change
$430,997 $338,474 27.34%
210,778 177,724 18.60%
$220,219 $160,750 36.99%
Increases in revenues are attributed to the additional users on the system and also to a dry
summer.
The City issued a $3,320,000 revenue bond to pay for the construction of a 1,000,000 gallon
water tower, pumphouse, and water mains. The additional retained earnings in this fund is
from bond proceeds that will be spent in 1997 for the completion of the above projects.
Sewer Fund - accounts for the operations of the municipal sanitary sewer system.
following table illustrates the operations:
Operating revenues
Operating expenses (excluding depreciation)
Percent
1996 1995 Change
$527,507 $483,121 9.19%
398,656 351,489 13.42%
Operating income S128,851 $131,632 2.11%
The
13
Expenditures increased due to the increase in sewage flow that is paid to the Metropolitan
Council Environmental Services division for treatment.
Gas Utility - accounts for the City's share of the Circle Pines gas utility that extends into the
community. In 1996, the City began investigating into the prospect of collection of gas
franchise fees from all providers within the City.
AGENCY FUNDS
Contractor's Deposits - accounts for the pass - through costs of developer financed projects
within the City.
Pending Assessments - accounts for the receipt of assessment prepayments prior to
certification. This fund is closed annually at certification time. The balance in this fund is the
result of assessments being collected, that will not be certified to Anoka County until the fall of
1997.
Investment Fund - accounts for the pooling of all the City's money that is invested throughout
the year. Interest on investments is recorded in this fund before allocating to all funds. Interest
earned in 1996 was $584,838 compared to $575,116 in 1995.
Deferred Compensation - accounts for employee contributions to the City authorized deferred
compensation plan. Section 457 of the Internal Revenue Code allows public employees to
establish such programs. The section states that any funds deferred under this program remain
the property of the City. The value of the deposits at December 31, 1996 is $467,350.
GENERAL FIXED ASSETS ACCOUNT GROUP
General fixed assets are those assets used for general governmental functions only. This does
not include enterprise funds. Depreciation is not recorded on the general fixed assets.
GENERAL LONG -TERM DEBT ACCOUNT GROUP
This group reports the current assets available in the Debt Service Funds and recognizes the
amounts to be provided through future tax levies, assessments and tax increments.
14
DEBT ADMINISTRATION
At year end, the City had a number of debt issues outstanding. These issues included
$1,378,000 of general obligation bonds, $7,675,000 of general improvement bonds with special
assessments pledged and $4,265,000 of revenue bonds. During 1996, the City issued $225,000
of equipment certificates, the proceeds of which were used to purchase equipment.
The City issued $4,685,000 of general improvement bonds in 1996 to finance infrastructure for
three residential developments, a new school, and a new lift station. The City issued
$3,320,000 in revenue bonds to finance the construction of a water tower, pumphouse, and
water main extensions.
The 1994 Temporary General Obligation bonds and the contract for deed on the purchase of
land were called one year early and paid for with cash on hand.
RISK MANAGEMENT
.,. The City's workers' compensation insurance and general property and liability coverage is
provided through the League of Minnesota Cities Insurance Trust (LMCIT)
The workers' compensation program is a joint self - insurance plan designed to hold down the
costs and assure coverage is available. Each city deposits a premium at the beginning of the
insurance year determined by calculating estimated payroll and applying experience
modification ratios. An audit is performed at the end of the insurance year, which may produce
a refund or an adjustment due. LMCIT's reserves and rates are reviewed annually by an
actuary to assure that the program remains financially strong.
INDEPENDENT AUDIT
Minnesota State law requires that cities over 2,500 population submit annual financial
statements attested by a certified public accountant or the State Auditor to the State Auditor
by June 30th of the following year. This requirement has been met with the auditors' report of
Tautges, Redpath, and Co. LTD included in this report.
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL
REPORTING
_ The Government Finance Officers Association of the United State and Canada (GFOA) awards
the Certificate of Achievement for excellence in financial reporting to cities that meet certain
criteria. A governmental unit must publish an easily readable and efficiently organized
comprehensive annual financial report, the contents of which conform to program
requirements. The City of Lino Lakes received its first award for the year ended December 31,
1995. The City is issuing the 1996 report to GFOA for consideration of the Certificate of
-- Achievement for Excellence in Financial Reporting. We believe our current report conforms to
the program requirements.
15
ACKNOWLEDGMENTS
The preparation of this report could not have been accomplished without the dedicated services
of the Finance Department which includes Paula Schloer, Accountant and Joyce Lund,
Account Clerk.
I also want to express my appreciation to the Mayor and City Council for their responsible
policies involving the financial operation of the City.
Respectfully submitted,
Mary M. Vaske
Finance Director
16
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lino Lakes,
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 1995
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
Preside
yit
Executive Director
17
II.
FINANCIAL
SECTION
19
glow
Iimmo
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
TAUTGES REDPATH & CO., LTD.
CERTIFIED PUBLIC ACLOL1N (ANTS
INDEPENDENT AUDITOR'S REPORT
We have audited the accompanying general purpose financial statements of the City of Lino Lakes, Minnesota, as
of and for the year ended December 31, 1996, 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.
We conducted our audit in accordance with generally accepted auditing standards and Government 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 general purpose 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 general purpose financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, 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, 1996 and the results of its
operations and cash flows of its proprietary fund types for the year then ended in conformity with generally
accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated February 28, 1997 on our
consideration of the City of Lino Lakes, Minnesota's internal control structure and a report dated February 28,
1997 on its compliance with laws and regulations.
Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a
whole. The combining and individual fund and account group financial statements, supplementary financial
information and statistical section listed in the table of contents are presented for purposes of additional analysis
and are not a required part of the 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 financial statements and, in our opinion, is
fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
TAUTGES, REDPATH & 0., LTD.
Certified Public Accountants
February 28, 1997
ftwor 4810 White Bear Parkway • White Bear Lake, Minnesota 55110 • 612/426 -7000 • FAX /426 -5004 • Member of HLP
GENERAL PURPOSE FINANCIAL STATEMENTS
23
CITY OF LINO LAKES, MINNESOTA
COMBINED BALANCE SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 1996
Governmental Fund Types
Special Debt Capital
Assets General Revenue Service Project
Cash and investments $2,671,992 $23,718 $246,555 $10,334,112
Cash and investments with escrow agent - - 92,813 -
Assets with deferred compensation plan administrator -
Accrued interest receivable - - - -
Accounts receivable 46,272 949 68,844
Deposits receivable - -
Due from other governmental units 85,465 3,938 953,080
Interfund receivable - - 1,040,283
Taxes receivable:
Delinquent 19,803 2,084 603
Due from County 17,837 1,976 7,888
Delinquent tax increment 1
Special assessments receivable - 1,793,033 3,015,970
Prepaid items 110,077 361 - -
Fixed assets (net of accumulated depreciation) - -
Amount available in Debt Service Fund -
Amount to be provided for retirement of GLTD
Total assets $2,951,446 $28,966 $2,136,461 $15,420,781
Liabilities, equity and other credits
Liabilities:
Interfund payable $ - $2,065 $ - $939,586
Accounts payable 135,745 3,658 263 65,145
Salaries payable 56,520 749
Contracts payable - 190,608
Accrued interest payable - - -
Assessments payable on City property
Deposits payable - - -
Due to other governmental units 8,069 16 - 14,518
Deferred revenue 28,087 - 1,794,654 3,014,111
Bonds payable - -
Contract for deed payable -
Compensated absences payable
Deferred compensation payable
Total liabilities 228,421 6,488 1,794,917 4,223,968
Equity and other credits:
Contributed capital
Invested in general fixed assets
Retained earnings - unreserved
Fund balance (deficit):
Reserved 110,077 361 341,544
Unreserved:
Designated 2,612,948 22,117 10,651,853
Undesignated - - 544,960
Total equity and other credits 2,723,025 22,478 341,544 11,196,813
Total liabilities, equity and other credits $2,951,446 $28,966 $2,136,461 $15,420,781
24 The accompanying notes are an integral part of these financial statements.
Statement 1
Proprietary Fiduciary Account Groups Totals
Fund Type Fund Type General General Long- (Memorandum Only)
Enterprise Agency Fixed Assets Term Debt 1996 1995
$1,996,044 $201,179 $ - $ - $15,473,600 $11,159,392
- 92,813 88,427
467,350 467,350 362,109
- 87,323 87,323 67,317
236,534 - - 352,599 307,329
- 160,939 160,939 65,261
_
- - 1,042,483 425,172
- - - 1,040,283 836,180
.- 22,490 22,367
- 27,701 24,480
- 1 2,640
- 4,809,003 2,547,115
_
3,722 114,160 153,047
18,544,995 4,126,153 - 22,671,148 18,488,455
- - - 341,544 341,544 701,502
8,900,771 8,900,771 6,291,323
WNW
$20,781,295 $916,791 $4,126,153 $9,242,315 $55,604,208 $41,542,116
S11,309 $87,323 $ - $ - $1,040,283 $836,180
16,420 16,373 - 237,604 205,814
3,293 - 60,562 20,533
624,369 - - 814,977 151,128
68,574 - 68,574 26,420
- - - - 10,510
- 345,686 - 345,686 232,897
26,201 59 48,863 62,753
- - - 4,836,852 2,557,656
4,265,000 9,053,000 13,318,000 7,621,000
- - - 172,300
... 11,635 - 189,315 200,950 193,594
- 467,350' - 467,350 362,109
5,026,801 916,791 0 9,242,315 21,439,701 12,452,894
14,781,682 - 14,781,682 13,508,011
4,126,153 - 4,126,153 3,967,392
972,812 - - - 972,812 786,265
451,982 825,712
13,286,918 9,960,962
-
544,960 40,880
15,754,494 0 4,126,153 0 34,164,507 29,089,222
$20,781,295 $916,791 $4,126,153 $9,242,315 $55,604,208 $41,542,116
The accompanying notes are an integral part of these financial statements. 25
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, 1996
Statement 2
Revenue:
General property taxes
Tax increments
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Fines and forfeits
Interest on investments
Refunds and reimbursements
Miscellaneous
Total revenue
Expenditures:
Current:
General government
Public safety
Public works
Parks, recreation and forestry
Capital outlay:
General government
Public safety
Public works
Parks, recreation and forestry
Debt service:
Principal
Interest and fiscal charges
Construction/acquisition
Total expenditures
Revenue over (under) expenditures
Special
General Revenue
$2,327,048 $ -
788,480
816,794 41,445
308,262 75,202
86,158 -
86,615 955
57,549
156,626
4,627,532 117,602
1,233,867 40,826
1,438,478
670,786
442,554 65,777
55,884
8,507
23,669
92,993
Debt Capital
Service Project
$303,884 $645
378,307
48,466 888,836
342,251 1,781,332
239,142
14,138 436,337
276,367
42,560
708,739 4,043,526
Totals
(Memorandum Only)
1996 1995
$2,631,577 $2,218,094
378,307 313,611
788,480
1,795,541
2,123,583
622,606
86,158
538,045
333,916
199,186
9,497,399
544,267
1,720,389
1,618,918
300,910
93,861
548,841
271,110
140,252
7,770,253
216,163 1,490,856 1,604,910
1,438,478 1,242,959
670,786 692,516
508,331 444,591
120,182
104,624
80,147
24,741
176,066 37,828
113,131 127,147
103,816 104,940
117,734 118,094
2,483,000 2,483,000 878,500
397,061 397,061 418,727
3,408,812 3,408,812 2,847,938
3,966,738 106,603 2,880,061 3,954,669 10,908,071 8,518,150
660,794 10,999 (2,171,322) 88,857 (1,410,672) (747,897) -
Other financing sources (uses):
Operating transfer in
Operating transfer out (24,000)
Bond proceeds -
Total other financing sources (24,000) 0
Net increase (decrease) in fund balance 636,794 10,999
Fund balance - January 1 2,086,231 11,479
Residual equity transfer in
Residual equity transfer out
Fund balance - December 31
26
46,122 46,122 1,814,014
(22,122) (46,122) (1,739,329)
13,197 4,853,781 4,866,978 176,000
13,197 4,877,781 4,866,978 250,685
(2,158,125) 4,966,638 3,456,306 (497,212)
653,887 8,075,957 10,827,554 11,324,766
1,858,933 13,151 1,872,084 612,861
(13,151) (1,858,933) (1,872,084) (612,861)
$2,723,025 $22,478 $341,544 $11,196,813 $14,283,860 ,$10,827,554
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 - BUDGET AND ACTUAL
GENERAL FUND
For The Year Ended December 31, 1996
Statement 3
Imar
Revenue:
General property taxes
- Licenses and permits
Intergovernmental
Charges for services
_, Fines and forfeits
Interest on investments
Refunds and reimbursements
Gas franchise fees
Cable TV
Miscellaneous
Total revenue
WNW
INIIIM
Expenditures:
Current:
General government
Public safety
Public works
Parks, recreation and forestry
Capital outlay:
General government
Public safety
Public works
Parks, recreation and forestry
Total expenditures
Revenue over (under) expenditures
Other financing sources (uses)
Operating transfer to Capital Project Funds
Total other financing sources (uses)
• Net increase (decrease) in fund balance
Fund balance - January 1
Fund balance - December 31
NNW
General
Budget
$2,328,302
406,932
751,834
317,180
90,000
50,000
34,832
32,500
48,400
39,025
4,099,005
Over
(Under) 1995
Actual Budget Actual
(Memorandum
Only)
$2,327,048 ($1,254) $1,941,415
788,480 381,548 544,267
816,794 64,960 738,652
308,262 (8,918) 241,393
86,158 (3,842) 93,861
86,615 36,615 78,659
57,549 22,717 32,481
41,726 9,226 30,486
48,437 37 18,255
66,463 27,438 52,866
4,627,532 528,527 3,772,335
1,286,220 1,233,867 (52,353) 1,170,345
1,437,640 1,438,478 838 1,242,959
690,830 670,786 (20,044) 692,516
438,515 442,554 4,039 395,297
64,440 55,884 (8,556) 2,702
9,365 8,507 (858) 22,105
27,430 23,669 (3,761) 8,357
96,710 92,993 (3,717) 22,757
4,051,150 3,966,738 (84,412) 3,557,038
47,855 660,794 612,939 215,297
(24,000)
0 (24,000)
636,794
2,086,231
$2,723,025
$47,855
(24,000)
(24,000)
$588,939
The accompanying notes are an integral part of these financial statements.
0
215,297
1,870,934
$2,086,231
27
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, 1996
Statement 4
Enterprise Funds
1996 1995
Operating revenue:
Water sales $401,889 $315,838
Sewer charges 527,507 460,668
Other operating revenue 29,108 45,089
Total operating revenue 958,504 821,595
Operating expenses:
Personal services 145,181 133,505
Materials and supplies 42,286 48,115
Contractual services 74,332 26,330
Repair and maintenance 8,576 14,010
MCES sewer charges 260,421 236,388
Depreciation:
Purchased assets 29,550 23,020
Contributed assets 299,864 281,455
Utilities 83,672 67,604
Other 3,851 3,261
Total operating expenses 947,733 833,688
Net income (loss) from operations 10,771 _ (12,093)
Other income (expense):
Interest on investments 46,793 26,275
Area and unit charges 179,250
Bond interest (144,228) (63,718)
Paying agent fees (26,653) (400)
Total other income (expense) (124,088) 141,407
Net income before operating transfers: (113,317) 129,314
Operating transfers:
Operating transfer from Capital Project Fund 104,565
Operating transfer to Capital Project Fund (179,250)
Total operating transfers 0 (74,685)
Net income (loss) (113,317) 54,629
Credit arising from transfer of depreciation
to contributions from property owners 299,864 281,455
Retained earnings - January 1 786,265 450,181
Retained earnings - December 31 $972,812 $786,265
28 The accompanying notes are an integral part of these financial statements.
IIMIC
Imo
CITY OF LINO LAKES, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS -
ALL PROPRIETARY FUND TYPES
For The Year Ended December 31, 1996
Statement 5
Cash flows from operating activities:
Enterprise Funds
1996 1995
Operating income (loss) $ 10,771 ($ 12,093)
Adjustments to reconcile operating income (loss) to
net cash flows from operating activities:
'" Depreciation 329,414 304,475
Change in assets and liabilities:
Decrease (increase) in receivables 17,603 (13,972)
— Decrease (increase) in prepaid items 25,115 (5,509)
Increase (decrease) in payables 650,346 (1,797)
Net cash flows from operating activities 1,033,249 271,104
■
emow
Cash flows from noncapital financing activities:
Collection of area and unit charges 179,250
Operating transfer to Capital Project Funds (179,250)
Net cash flows from noncapital financing activities 0 0
Cash flows from capital and related financing activities:
Principal paid on revenue bonds (50,000)
(40,000)
Interest and paying agent fees on revenue bonds (88,887) (64,967)
Operating transfer from Capital Project Funds 104,565
Proceeds from issuance of bonds 3,283,495 -
Acquisition of fixed assets (2,779,811) (39,626)
Net cash flows from capital and related financing activities 364,797 (40,028)
Cash flows from investing activities:
Interest on investments 43,458 26,275
Net increase in cash and cash equivalents 1,441,504 257,351
Cash and cash equivalents - January 1 554,540 297,189
Cash and cash equivalents - December 31 $1,996,044 $554,540
Noncash investing, capital and financing activities:
- Water and Sewer lines in the amount of $1,573,535 and $1,826,899 were contributed to the Water and Sewer Fund in 1996
and 1995 respectively.
The accompanying notes are an integral part of these financial statements.
29
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
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 its component units. Generally, component units
are legally separate organizations for which the officials of the primary government are financially
accountable.
COMPONENT UNITS
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.
The EDA does not issue separate financial statements.
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.
Wars
31
32
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
Debt Service Funds - to account for the accumulation of resources for, and the payment of,
general long -term debt principal, interest, and related costs.
Capital Project Funds - to account for financial resources to be used for the acquisition or
construction of major facilities other than those financed by Proprietary Funds.
PROPRIETARY FUNDS
Enterprise Funds - to account for operations: (a) that are financed and operated in a manner
similar to private business enterprises - where the intent of the governing body is that the
costs (expenses, including depreciation) of providing goods or services to the general public
on a continuing basis be financed or recovered primarily through user charges; or, (b) where
the governing body has decided that periodic determination of revenues earned, expenses
incurred, and/or net income is appropriate for capital maintenance, public policy,
management control, accountability, or other purposes.
FIDUCIARY FUNDS
Trust and Agency Funds - to account for assets held by a governmental unit in a trustee
capacity or as an agent for individuals, private organizations, other governmental units,
and/or other funds. These include (a) expendable trust funds, (b) nonexpendable trust funds,
(c) pension trust funds, and (d) agency funds.
ACCOUNT GROUPS
The governmental fund types are designed to account for the financial flow of a particular
fund; therefore, they generally include only current assets and current liabilities on their
balance sheets. The City maintains two account groups to account for noncurrent assets and
long -term liabilities as follows:
General Fixed Assets - The City maintains a separate account group which contains the fixed
assets used in the governmental fund type operations. They are assets of the City as a whole
and not of individual funds.
General Long -Term Debt - This account group contains the long -term obligations of the City
including general obligation bonds, certificates of indebtedness, contracts payable and
compensated absences payable. These long -term liabilities are expected to be financed by
the governmental funds.
C. BASIS OF ACCOUNTING
The accounting and reporting treatment applied to a fund is determined by its measurement focus.
All govemmental funds are accounted for on a current financial resources measurement focus. This
means that only current assets and current liabilities are generally included on their balance sheets.
Governmental fund operating statements present increases (revenues and other financing sources) and
decreases (expenditures and other financing uses) in net current assets.
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, 1996
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. Governmental Accounting Standards Board (GASB) Statement #20, Accounting and
Financial Reporting for Proprietary Funds and Other Governmental Entities that Use Proprietary
Funds, provides proprietary activities with a choice of authoritative guidance issued after November
30, 1989. The City of Lino Lakes has elected to follow GASB pronouncements exclusively after that
date.
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 $4,836,852, which consists of the
following:
State of Minnesota 1996 Omnibus Crime
Grant Program/Overtime $8,284
Property taxes receivable 22,491
Special assessments receivable 4,806,077
Total $4,836,852
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.
33
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
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.
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 (i.e., personal services,
supplies; other services and charges; capital outlay) within each activity.
9. The City Council may authorize transfer of budgeted amounts between City funds.
34
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
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.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund shown as interfund receivables in the advancing fund, and an interfund
payable in the fund with the deficit, until adequate resources are received.
Investments are stated at cost (plus interest added, if any) 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.
G. HOMESTEAD CREDIT AND AGRICULTURAL CREDIT MD (HACA)
Property taxes on homestead property (as defined by State Statutes) are partially reduced by HACA.
This credit is paid to the City by the State in lieu of taxes levied against homestead property. The
State remits this credit through installments each year. The credit is recognized as revenue by the
City at the time of collection.
H. LOCAL GOVERNMENT AID REVENUE RECOGNITION
Local government aid is provided to the City by the State as a shared tax based upon a statutory
formula and without restrictions. Payment from the State is generally received during each calendar
year for that calendar year. The City recognizes local government aid revenue when it becomes both
measurable and available to finance current operations. In practice, local government aid is
recognized as revenue as it is received in cash.
L 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.
35
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
The City recognizes property tax revenue when it becomes both measurable and available to finance
expenditures of the current period. In practice, current and delinquent taxes and State credits
received by the City in July, December and the following January are recognized as revenue for the
current year. Taxes and credits not received at the year end are classified as delinquent and due from
County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully
offset by deferred revenue because it is not available to finance current expenditures.
The City's property tax revenue includes payments from the Metropolitan Revenue Distribution
(Fiscal Disparities Formula) per State Statute 473F. This statute provides a means of spreading a
portion of the taxable valuation of commercial/industrial real property to various taxing authorities
within the defined metropolitan area. The valuation "shared" is a portion of commercial/mdustrial
property valuation growth since 1971. Property taxes paid to the City through this formula for 1996
and 1995 totaled $386,911 and $336,951 respectively. Receipt of property taxes from this "fiscal
disparities pool" does not increase or decrease total tax revenue.
J. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of
special assessment improvement projects in accordance with State Statutes. These assessments are
collectible by the City over a term of years usually consistent with the term of the related bond issue.
Collection of annual installments (including interest) is handled by the County Auditor in the same
manner as property taxes. Property owners are allowed to (and often do) prepay future installments
without interest or prepayment penalties.
Revenue from special assessments is recognized by the City when it becomes measurable and
available to finance expenditures of the current fiscal period. In practice, current and delinquent
special assessments received by the City are recognized as revenue for the current year. Special
assessments are collected by the County and remitted by December 31 (remitted to the City the
following January) and are also recognized as revenue for the current year. All remaining delinquent,
deferred and special deferred assessments receivable in 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/expenses at the time of
purchase of both the Governmental and Proprietary Funds. These funds do not maintain material
amounts of materials and supplies.
36
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
... L. FIXED ASSETS
IMP
limo
IMP
GENERAL FIXED ASSETS
General fixed assets are recorded as expenditures of the Governmental Funds at the time of purchase.
Such assets are capitalized at historical cost or estimated historical cost in the General Fixed Asset
Account Group. Public Domain ( "infrastructure") general fixed assets consisting of roads, bridges,
curbs, gutters, streets, sidewalks, drainage systems and lighting systems are excluded from general
fixed assets as these assets are immovable and of value only to the City. Gifts or contributions are
recorded in general fixed assets at fair market value at the time received. No depreciation has been
provided on general fixed assets.
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) financed by non-
operating funds (special assessments, general taxes, federal and state grants, and other sources) and
contributed to the sewer and water operating funds. City policy is to finance these assets by the
sources indicated rather than by user charges. Accordingly, the water and sewer user rates are not
established at levels sufficient to cover depreciation on these assets.
Depreciation on these assets is shown in the operating statements; however, the depreciation is
eventually transferred against the contribution account rather than retained earnings in accordance
with generally accepted accounting principles. Consequently, the contribution account reflects the net
book value of contributed assets rather than the original cost of such assets.
M. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay
benefits. Amounts that are expected to be liquidated with expendable available financial resources is
reported as an expenditure and a fund liability of the governmental fund that will pay it. Amounts
that are not expected to be liquidated with expendable available financial resources are reported in the
General Long -Term Debt Account Group. No expenditure is reported for these amounts. An unpaid
vacation and severance pay is payable when used or upon termination of employment. In accordance
with the provisions of Statement of Government Accounting Standards No. 16, Accounting for
Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive sick pay
benefits. Sick leave is payable when used and in some cases upon termination of employment. For
several employees, sick leave is payable upon retirement or termination in accordance with the terms
of their employment contracts. The remaining sick leave amounts are not recorded as liabilities
because payment is not probable.
37
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
N. LONG -TERM OBLIGATIONS
Long -term debt is recognized as a liability of a governmental fund when due, or when resources have
been accumulated in the Debt Service Fund for payment early in the following year. For other long-
term obligations, only that portion expected to be financed from expendable available financial
resources is reported as a fund liability of a governmental fund. The remaining portion of such
obligations is reported in the General Long-Term Debt Account Group. Long -term liabilities
expected to be financed from proprietary fund operations are accounted for in those funds.
O. FUND EQUITY
Contributed capital is recorded in Proprietary Funds that have received capital grants or contributions
from developers, customers or other funds. Reserves represent those portions of fund equity not
appropriable for expenditure or legally segregated for a specific future use. Designated fund balances
represent tentative plans for future use of financial resources.
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 nonroutine permanent transfers of equity are reported as residual equity
transfers. All other interfund transfers are reported as operating transfers.
Q. MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the General Purpose Financial Statements are captioned "Memorandum Only" to
indicate that they are presented only to facilitate financial analysis. Data in these columns do not
present financial position, results of operations or changes in cash flows in conformity with generally
accepted accounting principles. Neither are such data comparable to a consolidation. Interfund
eliminations have not been made in the aggregation of this data.
38
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
Note 2 DEPOSITS AND INVESTMENTS
DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized
by the City Council, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The
market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds
(140% in the case of mortgage notes pledged).
Authorized collateral includes the legal investments described below, as well as certain first mortgage
notes, and certain other state or local government obligations. Minnesota Statutes require that securities
pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than
that furnishing the collateral.
At year -end, the carrying amount of the City's deposits was $ 1,170,822 and the bank balance was
$813,717. 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, its instrumentalities,
or organizations created by an act of congress, excluding mortgage - backed securities defined as high
risk.
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, general obligation tax- exempt
securities, or repurchase or reverse repurchase agreements.
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.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $ 10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker - dealers; or, a
bank qualified as a depositor.
39
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
Balances at December 31, 1996:
Securities Type
Commercial Paper
FHLMC Notes
FNMA Notes
U.S. Treasury Notes
FHLMC - mortgage backed
FNMA - mortgage backed
Municipal bond
Certificates of accrual - treasury receipts
Totals
Investments not subject to categorization:
Mutual funds
Total investments
Deposits
Petty cash
Totals
Custodial Credit Risk Category
1 2 3
$5,137,749 $ - $ -
1,649,750 594,300
1,500,000
466,620
303,592
1,366,761
313,000
$9,237,472
Assets held by deferred compensation plan administrator
- 300,000
- 1,306,357
SO $3,700,657
Carrying Market
Amount Value
$5,137,749 $5,145,926
2,244,050 2,268,533
1,500,000 1,489,640
466,620 451,331
303,592 297,662
1,366,761 1,341,451
613,000 613,000
1,306,357 1,258,837
12,938,129 12,866,380
1,457,062 1,314,490
14,395,191 $14,180,870
1,170,822
400
$15,566,413
$467,350 $467,350
A reconciliation of cash and investments as shown on the combined balance sheet is as follows:
Cash and investments
Cash and investments with escrow agent
$15,473,600
92,813
Total $15,566,413
The City's investments are categorized above to give an indication of the level of custodial credit 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.
40
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
Note 3 FIXED ASSETS
A summary of changes in general fixed assets is as follows:
Balance Balance
1/1/96 Additions Deletions 12/31/96
Land and improvements $649,600 $ - $ - $649,600
Buildings and structures 1,539,500 - - 1,539,500
Equipment and furniture 840,325 127,916 39,446 928,795
Machinery and vehicles 763,654 92,648 37,941 818,361
Other improvements 174,313 16,384 800 189,897
Totals $3,967,392 $236,948 $78,187 $4,126,153
A summary of Proprietary Fund fixed assets at December 31, 1996 is as follows:
Gas
Water Sewer Utility Total
Buildings and structures $48,690 $ - $ - $48,690
Machinery and equipment 62,482 50,958 113,440
Water and sewer lines 7,702,000 9,771,617 - 17,473,617
Construction in progress 2,755,152 2,755,152
Acquisition costs - gas utility - 2,375 2,375
Total 10,568,324 9,822,575 2,375 20,393,274
Less: Accumulated depreciation (786,378) (1,061,901) (1,848,279)
Net Fixed Assets $9,781,946 $8,760,674 $2,375 $18,544,995
WWII
OMNI
UMW
WIWI
41
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
Note 4 CITY INDEBTEDNESS
The following is a schedule of changes in City indebtedness for the year ended December 31, 1996:
Balance Balance
1/1/96 Additions Deletions 12/31/96
General Long Term Debt Account Group:
Bonded debt:
General obligation $1,341,000 $225,000 $188,000 $1,378,000
Special assessment 5,285,000 4,685,000 2,295,000 7,675,000
Assessment payable 10,510 10,510
Contract for deed payable 172,300 172,300
Compensated absences payable 184,015 5,300 - 189,315
Total general long term debt 6,992,825 4,915,300 2,665,810 9,242,315
Proprietary Fund:
Revenue bond 995,000 3,320,000 50,000 4,265,000
Compensated absences 9,579 2,056 - 11,635
Total $7,997,404 $8,237,356 $2,715,810 $13,518,950
All long -term bonded indebtedness outstanding at December 31, 1996 is backed by the full faith and credit of
the City, including special assessment bond issues. Delinquent assessments receivable at December 31, 1996
totaled $21,040.
The annual requirement to amortize all debt outstanding at December 31, 1996 including interest payments of
$5,193,458 is as follows:
1997 1998 1999 2000 2001 2002 and on Total
General Obligation Bonds $292,427 $195,188 $197,738 $114,913 $135,706 81,104,813 82,040,785
Special Assessment Bonds 586,088 933,540 1,243,400 1,184,645 1,144,858 4,895,625 9,988,156
Revenue Bonds 252,462 366,347 423,111 417,937 421,906 4,600,754 6 482,517
Total 81,130,977 81,495,075 $1,864,249 81,717,495 81,702,470 810,601,192 S18,511,458
It is not practicable to determine the specific year for payment of compensated absences payable.
42
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
City indebtedness at December 31, 1996 is composed of the following:
Final
Issue Maturity Interest Original Payable
Date Date Rates Issue 12/31/96
General Obligation Bonds:
1994 Equipment Certificates 3/1/94 12/31/96 5.00% $150,000 $ -
1995 Equipment Certificates 2/1/95 12/31/97 5.00% 176,000 88,000
1996 Equipment Certificates 2/1/96 12/31/99 5.00% 225,000 225,000
Public Project Revenue Bonds - 1990A 10/1/90 2/1/10 7.12% 1 115,000 1 065,000
Total General Obligation Bonds 1,666,000 1,378,000
Special Assessment Bonds:
G. 0. Improvement Refunding Bonds, Series 1992A 4/1/92 2/1/06 631% 3,640,000 2,990,000
G. O. Temporary Improvement Bonds, Series 1994A 11/1/94 11/1/97 4.90% 2,095,000 G. O. Improvement Bonds 1996A 10/1/96 2/1/97 5.05% 4,685,000 4,685,000
Total Special Assessment Bonds 10,420,000 7,675,000
Revenue Bonds:
G. O. Water Revenue Bonds, Series 1992B 4/1/92 2/1/08 6.67% 1,060,000 945,000
G. 0. Water Revenue Bonds, Series 1996B 10/1/96 2/1/12 5.48% 3,320,000 3,320,000
Total Revenue Bonds 4,380,000 4,265,000
... Total - All Bonds 16,466,000 13,318,000
Compensated absences payable N/A 200,950
Total ladebtedneaa $16,466 ®� $13,518,950
s
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 1996 and 1995 is computed as
follows:
Market value
Applicable percentage
Debt limit
December 31,
1996 1995
$552,696,200 $501,825,800
2% 2%
11,053,924 10,036,516
Amount of debt applicable to debt limit:
Total bonded debt 13,318,000 7,621,000
Less: Special assessment bonds (7,675,000) (5,285,000)
. Public project revenue bonds (1,065,000) (1,090,000)
Cash and investments in
Debt Service Funds (13,703) (10,712)
Revenue bonds (4,265,000) (995,000)
Total debt applicable to debt limit 299,297 240,288
Legal debt margin $10,754,627 $9,796,228
43
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
Note 6 DEFINED BENEFIT PENSION PLANS - STATEWIDE
A. PLAN DESCRIPTION
All full-time and certain part-time employees of the City of Lino Lakes are covered by defined benefit
plans administered by the Public Employees Retirement Association of Ivfinnecota (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. These plans are
established and administered in accordance with Minnesota Statute, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members
are covered by Social Security and Basic Plan members are not. All new members must participate
in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for
membership by statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by State Statute, and vest after three years of
credited service. The defined retirement benefits are based on a member's highest average salary for
any five successive years of allowable service, age, and years of credit at termination of service.
Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The
retiring member receives the higher of step -rate benefit accrual formula (Method 1) or a level accrual
formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2 percent
of average salary for each of the first 10 years of service and 2.5 percent for each remaining year. For
a Coordinated Plan 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 Plan members and 1.5 percent for Coordinated Plan members.
For PEPFF members, the annuity accrual rate is 2.65 percent for each year of service. For all PEPFF
members and for PERF members whose annuity is calculated using Method 1, a full annuity is
available when age plus years of service equal 90. A reduced retirement annuity is also available to
eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A normal annuity is a
lifetime annuity that ceases upon the death of the retiree —no survivor annuity is payable. There are
also various types of joint and survivor annuity options available which will reduce the monthly
normal annuity amount, because the annuity is payable over joint lives. Members may also leave
their contributions in the fund upon termination of public service in order to qualify for a deferred
annuity at retirement age. Refunds of contributions are available at any time to members who leave
public service, but before retirement benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions and
apply to active plan participants. Vested, terminated employees who are entitled to benefits but are
not receiving them yet are bound by the provisions in effect at the time they last terminated their
public service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA,
514 St. Peter Street #200, St. Paul, Minnesota, 55102 or by calling (612)296 -7460 or 1- 800 -652 -
9026.
44
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
B. FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These
statutes are established and amended by the state legislature. The City makes annual contributions to
the pension plans equal to the amount required by state statutes. PERF Basic Plan members and
Coordinated Plan members are required to contribute 8.23% and 4.23 %, respectively, of their annual
covered salary. PEPFF members are required to contribute 7.60% of their annual covered salary.
The City of Lino Lakes is required to contribute the following percentages of annual covered payroll:
10.73% for Basic Plan PERF members, 4.48% for Coordinated Plan PERF members, and 11.40% for
PEPFF members. The City's contributions for the years ending June 30, 1996, 1995, and 1994 were
$124,930, S112,780 and $102, 333, respectively, equal to the contractually required contributions for
each year as set by state statute.
Note 7 METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES
During 1971, the Metropolitan Waste Control Commission (MWCC) was organized to provide for
consolidation of the sanitary sewer collection, treatment and disposal in the seven county metropolitan area
surrounding Minneapolis and St. Paul. Previously, these operations were maintained by the city governments
on an individual or collective basis. The MWCC merged with the Metropolitan Council during 1994 to form
Metropolitan Council Wastewater Services (MCWS) and is now called the Metropolitan Council
Environmental Services (MCES).
The MCES bills the City annually based upon estimated volume and budgeted costs. These billings are later
adjusted when actual volume and actual costs are determined. The adjustment to actual is generally
determined in the succeeding calendar year and payable by the City in the second succeeding calendar year.
The City follows the accounting policy of recognizing these charges as an expense of the sewer utility
operation in the year for which they are billed (for estimated billings) and in the year the adjustments are
determined (for adjustments from estimated to actual billings).
Note 8 RECONCILIATION OF CONTRIBUTED CAPITAL
Changes to contributed capital during the year are as follows:
Depreciation
Beginning Capital on Contributed Ending
Balance Contributions Assets Balance
Water $5,220,943 $942,649 ($115,843) $6,047,749
Sewer 8,287,068 630,886 (184,021) 8,733,933
Total $13,508,011 $1,573,535 ($299,864) $14,781,682
YAM
45
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
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 $467,350 of funds recorded at market value
and primarily held by insurance companies in various investment pools for future payment of plan benefits.
Note 10 SEGMENT INFORMATION
The City maintains three Enterprise Funds which provide water, sanitary sewer and gas utility services.
Segment information for the year ended December 31, 1996 is as follows:
Operating revenue
Depreciation ccpcnse
Operating income (loss)
Property, plant
and equipment additions
Net income (loss)
Area and unit charges
Operating transfer in
Operating transfer out
Net property, plant
and equipment
Net working capital
Total assets
Bonds payable
Total equity
46
Total
Water Sewer Water Gas Totals
Utility Utility and Sewer Utility 1996 1995
$430,997 $527,507 S958,504 $ - $958,504 $821,595
141,461 187,953 329,414 - 329,414 304,475
78,758 (59,102) 19,656 (8,885) 10,771 (12,093)
2,770,029 9,782 2,779,811 - 2,779,811 39,626
(56,810) (47,622) (104,432) (8,885) (113,317) 129,314
179,250
104,565
179,250
9,781,946 8,760,674 18,542,620 2,375 18,544,995 14,521,063
1,022,021 425,422 1,447,443 (11,309) 1,436,134 727,792
11,567,716 9,211,204 20,778,920 2,375 20,781,295 15,358,577
4,265,000 - 4,265,000 4,265,000 995,000
6,581,290 9,182,138 15,763,428 (8,934) 15,754,494 14,294,276
Mono
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
Note 11 DEFICIT FUND BALANCES/RETAINED EARNINGS
The City has deficit fund balances/retained earnings at December 31, 1996 as follows:
Fund
Balance/Retained
Earnings Deficit
Capital Project Funds:
1994 Construction $ 17,760
1997 Construction 122,853
Town Center Project 36,536
Tax Increment Financing 1-4 4,460
Tax Increment Financing 1 -5 1,771
Tax Increment Financing 1-6 27,578
Tax Increment Financing 1 -7 179,910
Tax Increment Financing 3 -1 3,991
Enterprise Fund:
Gas Utility
., Note 12 CONTINGENCIES
w
8,934
Litigation - The City attorney has indicated that existing and pending lawsuits, claims and other actions in
which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of
the City attomey, remotely recoverable by plaintiffs.
Federal and State Funds - The City receives financial assistance from federal and state governmental agencies
-- in the form of grants. The disbursement of funds received under these programs generally requires
compliance with the terms and conditions specified in the grant agreements and is subject to audit by the
grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable
fund. However, in the opinion of management, any such disallowed claims will not have a material effect on
any of the financial statements of the individual fund types included herein or on the overall financial position
of the City at December 31, 19%.
Note 13 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.
47
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
These future scheduled tax levies are not shown as assets in the accompanying financial statements at
December 31, 1996 and 1995.
Future scheduled tax levies for all bonds outstanding at December 31, 1996 totaled $5,294,764.
Note 14 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY
At December 31, 1996 and 1995 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,
1996 and 1995 are shown on the various balance sheets as segregations of the fund equity. A summary of such
designations is as follows:
December 31,
1996 1995
General Fund:
Reserve for prepaid items $110,077 $123,673
Designated for general contingencies 684,647 542,055
Designated for cash flow reserve 1,596,195 1,420,503
Designated for employee benefits 332,106 -
Special Revenue Funds:
Reserve for prepaid items 361 537
Designated for recreation program 22,002 12,210
Designated for CDBG programs 115 -
Debt Service Funds:
Reserved for debt retirement 341,544 701,502
Capital Project Funds:
Designated for committed contracts 187,511 268,574
Designated for capital improvements 10,174,577 7,468,606
Designated for equipment acquisition 37,276 -
Designated for park improvements 252,489 249,014
Totals $13,738,900 $10,786,674
Note 15 SHARE IN GAS FRANCHISE PROFITS
The City receives a share of the gross billing for natural gas sales by a neighboring City which provides
service within the City of Lino Lakes. The amount reported as revenue for 1996 totaled $41,726.
48
Now
Now
II IMP
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
Note 16 INTERFUND RECEIVABLE AND PAYABLES
Individual fund receivable and payable balances at December 31, 1996 are as follows:
Fund Receivable Payable
Special Revenue Funds:
Community Development Block Grant $ $2,065
Capital Project Funds:
Area and Unit Charge 1,040,283
1994 Construction 589,358
1997 Construction - 117,014
Town Center Project 17,789
Tax Increment Financing District 1-4 - 3,081
Tax Increment Financing District 1 -5 1,342
Tax Increment Financing District 1-6 27,235
Tax Increment Financing District 1 -7 - 181,225
Tax Increment Financing District 3 -1 - 2,542
Enterprise Fund:
Gas Utility 11,309
Agency Fund:
Investments fund 87,323
$1,040,283 $1,040,283
Note 17 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors
and omissions; injuries to employees; and natural disasters.
Workers compensation coverage is provided through a pooled self- insurance program through the League of
Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject
to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers
— Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is
not subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type
of coverage, final premiums are determined after loss experience is known. The amount of premium
adjustment, if any, is considered immaterial and not recorded until received or paid.
Property and casualty insurance is provided through a pooled self- insurance program through the LMCIT.
The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed
necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of
various amounts. The City retains risk for the deductible portion of the insurance policies and for any
exclusions from the insurance policies. These amounts are considered immaterial to the financial statements.
49
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
The City continues to carry commercial insurance for all other risks of loss, including disability and employee
health insurance.
There were no significant reductions in insurance from the previous year or settlements in excess of insurance
coverage for any of the past three fiscal years.
Note 18 FUND RECLASSIFICATION
During 1996 the City reclassified the Closed Bond Fund from a debt service fund to a capital project fund and
the Community Development Block Grant Fund from a capital project fund to a special revenue fund. The
1995 fund totals have been restated for these changes.
Note 19 COMMITTED CONTRACTS
At December 31, 1996, the City had the following commitments for uncompleted construction contracts:
Fund/Project Amount
Area and Unit Charge:
4th Avenue trunk utility $25,187
Well Pumphouse #4 14,954
Cedar Street lift station 72,580
1996 Construction:
Trapper's crossing 43,852
Marshan townhomes 12,607
Pheasant Hills preserve 7th addition 7,657
50
COMBINING, INDIVIDUAL FUND
AND
ACCOUNT GROUP
FINANCIAL STATEMENTS
51
GENERAL FUND
— The General fund accounts for all financial resources except those required to be accounted for in
another fund.
Ilowo
gows
taw
53
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
BALANCE SHEET
December 31, 1996
With Comparative Amounts At December 31, 1995
Statement 6
1996 1995
Assets
Cash and investments $2,671,992 $1,937,813
Accounts receivable 46,272 53,152
Due from other governmental units 85,465 74,258
Taxes receivable:
— Delinquent 19,803 19,420
Due from County 17,837 17,883
Prepaid items 110,077 123,673
Total assets $2,951,446 $2,226,199
Liabilities and Fund Balance
Liabilities:
Accounts payable $135,745 $70,780
Salaries payable 56,520 18,081
Due to other governmental units 8,069 31,686
Deferred revenue 28,087 19,421
Total liabilities 228,421 139,968
Fund balance:
Reserved for prepaid items 110,077 123,673
Unreserved:
Designated for general contingencies 684,647 542,055
Designated for cash flow reserve 1,596,195 1,420,503
Designated for employee benefits 332,106 -
Total fund balance 2,723,025 2,086,231
Total liabilities and fund balance $2,951,446 $2,226,199
Nor
WNW
55
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, 1996
With Comparative Actual Amounts For The Year Ended December 31, 1995
Statement 7
Page 1of6
1996
Over (Under) 1995
Budget Actual Budget Actual
Revenue:
General property taxes:
Current and delinquent $1,976,472 $1,972,880 ($3,592) $1,634,493
Fiscal disparities 341,830 341,830 294,658
Excess tax increments 10,000 12,338 2,338 12,264
Total general property taxes 2,328,302 2,327,048 (1,254) 1,941,415
Licenses and permits:
Non - business 389,690 765,600 375,910 525,550
Business 17,242 22,880 5,638 18,717
Total licenses and permits 406,932 788,480 381,548 544,267
Intergovernmental:
Federal:
Other 30,000 58,047 28,047 28,598
State:
Local government aid 155,212 155,212 149,372
Homestead credit 367,492 367,492 380,335
Mobile home homestead credit - 3,438 3,438 3,438
Police state aid 69,600 89,984 20,384 56,817
Police - other - - - 3,571
MSA maintenance 85,000 102,820 17,820 77,945
Other 3,300 3,300 2,601
County:
Solid waste 43,330 35,168 (8,162) 35,812
Other 1,200 1,333 133 163
Total intergovernmental 751,834 816,794 64,960 738,652
Charges for services:
General government 4,100 2,439 (1,661) 2,748
Planning /engineering 91,100 78,597 (12,503) 40,511
Recreation 2,400 2,000 (400) 3,186
Fees retained from collection for
other governments - SAC /surcharge 2,500 4,959 2,459 3,469
Administrative charge - other funds 100,000 118,167 18,167 83,095
Administrative charge - T1F 38,000 (38,000) 38,000
Aerial map charge - other funds 15,000 32,490 17,490 19,800
Public safety 64,080 69,610 5,530 50,584
Total charges for services 317,180 308,262 (8,918) 241,393
Fines and forfeits 90,000 86,158 (3,842) 93,861
Interest on investments 50,000 86,615 36,615 78,659
Refunds and reimbursements 34,832 57,549 22,717 32,481
Gas franchise fees 32,500 41,726 9,226 30,486
Cable TV 48,400 48,437 37 18,255
Miscellaneous:
Sale of property 5,000 33,500 28,500 15,932
Donations 10,525 4,769 (5,756) 19,347
Other 23,500 28,194 4,694 17,587
Total miscellaneous 39,025 66,463 27,438 52,866
Total revenue
56
4,099,005 4,627,532 528,527 3,772,335
Way
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, 1996
With Comparative Actual Amounts For The Year Ended December 31, 1995
Statement 7
Page 2 of 6
1996
Budget
Over (Under) 1995
Actual Budget Actual
Expenditures:
General government:
Mayor and council:
Current:
Personal services $25,805 $25,290 ($515) $26,032
Supplies 200 903 703 141
Other services and charges 30,080 30,421 341 27,843
Total mayor and council 56,085 56,614 529 54,016
Elections:
Current:
Personal services 8,915 9,728 813 3,015
Supplies 500 152 (348) 2,188
- Other services and charges 350 556 206 1,226
Capital outlay 675 562 (113) -
Total elections 10,440 10,998 558 6,429
- Administration:
Current:
Personal services 245,855 235,901 (9,954) 241,644
Supplies 750 938 188 1,583
Other services and charges 39,180 31,260 (7,920) 17,278
Contractual Services - 5,419 5,419 15,411
Capital outlay 1,000 1,738 738 106
Total administration 286,785 275,256 (11,529) 276,022
Finance
Current:
Personal services 134,880 129,518 (5,362) 110,400
Supplies 800 1,243 443 894
Other services and charges 34,090 30,421 (3,669) 1,993
Contractual Services 47,600 47,599 (1) 72,071
Total finance 217,370 208,781 (8,589) 185,358
Cable TV:
Current:
Personal services 1,550 1,720 170 1,169
Supplies 220 107 (113) 15
Capital outlay 24,000 (24,000)
Total cable TV 25,770 1,827 (23,943) 1,184
Consultants:
Current:
Legal 112,000 117,940 5,940 106,157
57
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, 1996
With Comparative Actual Amounts For The Year Ended December 31, 1995
Statement 7
Page 3 of 6
1996
Over (Under) 1995
General government: (continued) Budget Actual Budget Actual
Economic Development:
Current:
Personal services $112,070 $113,227 $1,157 $96,768
Supplies 1,000 1,297 297 692
Other services and charges 22,480 21,153 (1,327) 17,407
Contractual services 4,000 248 (3,752) 3,553
Capital outlay 19,500 19,476 (24) -
Total economic development 159,050 155,401 (3,649) 118,420
Planning and zoning board:
Current:
Supplies 100 (100)
Other services and charges 6,790 4,143 (2,647) 4,554
Contractual services 2,300 2,205 (95) 1,627
Total planning and zoning commission 9,190 6,348 (2,842) 6,181
Engineering /planning
Current:
Personal services 181,590 183,558 1,968 132,763
Supplies 1,030 2,402 1,372 1,326
Other services and charges 71,370 66,463 (4,907) 4,759
Contractual services 22,500 22,004 (496) 99,155
Capital outlay 4,565 4,509 (56) 121
Total engineering /planning 281,055 278,936 (2,119) 238,124
Charter commission:
Current:
Supplies 100 19 (81) 329
Other services and charges 4,150 344 (3,806) 5,060
Total charter commission 4,250 363 (3,887) 5,389
General government buildings:
Current:
Personal services 6,500 3,303 (3,197) 30,383
Supplies 24,748 20,673 (4,075) 18,604
Other services and charges 107,757 98,197 (9,560) 114,055
Contractual services 34,960 25,515 (9,445) 10,250
Capital outlay 14,700 29,599 14,899 2,475
Total general government buildings 188,665 177,287 (11,378) 175,767
Total general government 1,350,660 1,289,751 (60,909) 1,173,047
58
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, 1996
With Comparative Actual Amounts For The Year Ended December 31, 1995
Statement 7
Page 4 of 6
1996
Budget
Over (Under) 1995
Actual Budget Actual
Public safety:
Police:
_ Current:
Personal services $905,260 $911,573 $6,313 $780,613
Supplies 28,040 25,311 (2,729) 24,426
Other services and charges 77,880 80,239 2,359 71,423
Contractual services 25,420 20,471 (4,949) 21,750
Capital outlay 4,565 4,540 (25) 22,105
Total police 1,041,165 1,042,134 969 920,317
Fire protection:
Current:
Contractual services 270,000 268,000 (2,000) 243,856
- Building inspection:
Current:
Personal services 105,920 103,123 (2,797) 97,566
- Supplies 2,100 1,128 (972) 904
Other services and charges 3,770 2,610 (1,160) 2,421
Contractual services 19,250 26,023 6,773
... Capital outlay 4,800 3,967 (833)
Total building inspection 135,840 136,851 1,011 100,891
r
Contractual services:
Streets 160,266 155,884 (4,382) 204,529
Signs 12,073 7,041 (5,032) 13,091
_
Street lighting 37,297 27,406 (9,891) 29,597
Other services and charges 30,447 22,706 (7,741) 24,106
Capital outlay 18,930 18,196 (734) -
Total streets 502,113 464,283 (37,830) 479,022
Total public safety 1,447,005 1,446,985 (20) 1,265,064
Public works:
Streets:
Current:
Personal services 236,610 228,434 (8,176) 201,897
Supplies 6,490 4,616 (1,874) 5,802
59
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, 1996
With Comparative Actual Amounts For The Year Ended December 31, 1995
Statement 7
Page 5 of 6
1996
Over (Under) 1995
Public works: (continued) Budget Actual Budget Actual
Fleet:
Current:
Personal services $53,020 $51,436 ($1,584) $48,980
Supplies 101,627 117,770 16,143 123,206
Other services and charges 2,260 7,893 5,633 848
Capital outlay - 403 403
Total fleet 156,907 177,502 20,595 173,034
Solid waste abatement:
Current:
Personal services 31,110 30,380 (730) 23,853
Supplies 770 117 (653) 492
Other services and charges 8,860 5,647 (3,213) 7,449
Contractual services 10,000 11,053 1,053 8,666
Capital outlay 8,500 5,473 (3,027) 8,357
Total solid waste abatement 59,240 52,670 (6,570) 48,817
Total public works
718,260 694,455 (23,805) 700,873
Parks, recreation & forestry:
Parks:
Current:
Personal services 218,075 218,029 (46) 199,117
Supplies 22,924 24,786 1,862 30,247
Other services and charges 35,081 43,152 8,071 34,478
Contractual services 2,300 3,186 886 3,259
Capital outlay 76,910 69,840 (7,070) 15,018
Total parks 355,290 358,993 3,703 282,119
Recreation:
Current:
Personal services 77,230 77,513 283 65,588
Supplies 3,200 3,622 422 3,358
Other services and charges 25,490 19,058 (6,432) 9,441
Contractual services 3,800 5,962 2,162 2,952
Total recreation 109,720 106,155 (3,565) 81,339
Forestry:
Current:
Personal services 44,190 43,758 (432) 40,982
Supplies 1,701 1,202 (499) 1,227
Other services and charges 3,624 1,180 (2,444) 827
Contractual services 900 1,106 206 3,821
Capital outlay 19,800 23,153 3,353 7,739
Total forestry 70,215 70,399 184 54,596
Total parks, recreation & forestry 535,225 535,547 322 418,054
60 Total expenditures 4,051,150 3,966,738 (84,412) 3,557,038
- 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, 1996
With Comparative Actual Amounts For The Year Ended December 31, 1995
Statement 7
Page 6 of 6
1996
Over (Under) 1995
Budget Actual Budget Actual
Revenue over (under) expenditures $47,855 $660,794 $612,939 $215,297
- Other financing sources (uses):
Operating transfer to Capital Project Funds (24,000) (24,000)
Total other financing sources (uses) 0 (24,000) (24,000) 0
Net increase (decrease) in fund balance $47,855 636,794 $588,939 215,297
- Fund balance - January 1 2,086,231 1,870,934
Fund balance - December 31 $2,723,025 $2,086,231
lower
Now
WIN
61
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are
— legally restricted to expenditures for particular purposes. The City maintained the following
Special Revenue Funds during the year.
War
lamp
VIWO
Economic Development Authority - established to account for the receipt and uses of
funds for economic purposes.
Community Development Block Grant - to account for the financial activity related to
projects funded by CDBG programs.
Program Recreation - established to account for various self - supporting recreational
programs.
63
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31, 1996
With Comparative Totals For December 31, 1995
Statement 8
Assets
Cash and investments
Accounts receivable
Due from other governments
Prepaid items
Total assets
Liabilities and Fund Balance
Liabilities:
Interfund payable
Accounts payable
Salaries payable
Due to other governmental units
Total liabilities
Economic Community
Development Development Program Totals
Authority Block Grant Recreation 1996 1995
$
$ $23,718 $23,718 $14,021
949 949 318
3,938 3,938 16,603
51 310 361 537
$0 $3,989 $24,977 $28,966 $31,479
$ $2,065 $ - $2,065 $14,096
1,446 2,212 3,658 5,223
312 437 749 647
16 16 34
0 3,823 2,665 6,488 20,000
Fund balance (deficit):
Reserved for prepaid items 51 310 361 537
Unreserved:
Designated for recreation programs 22,002 22,002 12,210
Designated for CDBG programs 115 - 115 -
Undesignated (1,268)
Total fund balance 0 166 22,312 22,478 11,479
Total liabilities and fund balance $0 $3,989 $24,977 $28,966 $31,479
64
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
For The Year Ended December 31, 1996
With Comparative Totals For The Year Ended December 31, 1995
Statement 9
Revenue:
Intergovernmental:
Federal:
CDBG
Charges for services:
Recreation fees
Administrative charge - other funds
Interest on investments
Refunds and reimbursements
Total revenues
Economic Community
Development Development Program Totals
Authority Block Grant Recreation 1996 1995
$41,445 $ $41,445 $43,854
74,454 74,454 57,855
748 - 748 1,662
955 955 693
13
748 41,445 75,409 117,602 104,077
Expenditures:
General government:
Current:
Personal services 748 15,497 16,245 12,193
Other services and charges 1,813 - 1,813
Contractual services 22,768 22,768 33,975
Parks, recreation and forestry:
Current:
Personal services 38,394 38,394 29,215
Supplies 26,424 26,424 17,371
Other services and charges - 402 402 1,487
Contractual services 557 557 1,221
Capital outlay - - - 4,516
Total expenditures 748 40,078 65,777 106,603 99,978
Revenue over (under) expenditures 1,367 9,632 10,999 4,099
Fund balance (deficit) - January 1 (1,201) 12,680 11,479 7,380
Fund balance - December 31 $0 $166 $22,312 $22,478 $11,479
UMW
Wow
65
DEBT SERVICE FUNDS
The Debt Service Funds account for the accumulation of resources for, and the payment of,
interest, principal and related costs on general longterm debt.
The City's Debt Service Funds account for two types of bonded indebtedness:
• General Debt Bonds - are repaid primarily from property taxes.
• Improvement Bonds - are repaid primarily from special assessments.
67
Wow
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 1996
With Comparative Totals For December 31, 1995
Statement 10
Assets
1994 1995 Public Project
Improvement Improvement Certificates Certificates Revenue
Bonds of Bonds of of of Bonds Totals
1992A 1996A Indebtedness Indebtedness of 1990A 1996 1995
Cash and investments $131,362 $13,199 $9,255 $4,448 $88,291 $246,555 $611,099
Cash and investments
- with escrow agent 92,813 92,813 88,427
Taxes receivable:
Delinquent 609 673 802 2,084 2,435
Due from County - 525 811 640 1,976 2,140
Special assessments receivable:
Delinquent 8,105 - - 8,105 7,181
Deferred 84,465 1,700,000 - 1,784,465 752,624
• Due from County 463 - 463 460
Total assets
Liabilities and Fund Balance
$224,395 $1,713,199 $10,389 $5,932 $182,546 $2,136,461 $1,464,366
Liabilities:
•- Interfund payable $ - $ - $ - $ - $ - $ - $48,239
Accounts payable 200 63 - - 263 -
Deferred revenue 92,570 1,700,000 609 673 802 1,794,654 762,240
Total liabilities 92,770 1,700,063 609 673 802 1,794,917 810,479
Fund balance (deficit):
Reserved for debt retirement 131,625 13,136 9,780 5,259 181,744 341,544 701,502
- Unreserved:
Undesignated - (47,615)
Total fund balance (deficit) 131,625 13,136 9,780 5,259 181,744 341,544 653,887
Total liabilities and fund balance $224,395 $1,713,199 $10,389 $5,932 $182,546 $2,136,461 $1,464,366
lamp
Immo
69
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 1996
With Comparative Totals For The Year Ended December 31, 1995
Revenue:
General property taxes:
Current and delinquent
Fiscal disparities
Intergovernmental:
State:
HACA and equalization aid
Special assessments:
Current and delinquent
Prepayments
Penalties and interest
Interest on investments
Total revenue
Temporary
Improvement Improvement Improvement
Bonds of Bonds of Bonds of
1992A 1994A 1996A
$
28,357 70,427
101,284 141,155
1,028 -
4,059 1,825
134,728 213,407
2
2
Expenditures:
Debt service:
Principal 200,000 2,095,000
Interest 193,195 102,655
Fiscal charges 600 300 63
Total expenditures 393,795 2,197,955 63
Revenue over (under) expenditures (259,067) (1,984,548) (61) ,r
Other financing sources (uses):
Bond proceeds
Total other financing sources (uses) 0 0
Net increase (decrease) in fund balance (259,067) (1,984,548)
Fund balance (deficit) - January 1 390,692 125,615
Residual equity transfer in
Residual equity transfer out
Fund balance (deficit) - December 31
70
1,858,933
13,197
13,197
13,136
$ 131,625 $0 $ 13,136
Statement 11
1990 1992 1994 1995 Public
Certificates Certificates Certificates Certificates Project
- of of of of Revenue Bonds Totals
Indebtedness Indebtedness Indebtedness Indebtedness of 1990A 1996
1995
$157 $39,942 $60,501 $81,956 $76,263 $258,819 $232,841
6,944 10,524 14,354 13,243 45,065 42,293
7,482 11,314 15,432 14,238 48,466 54,589
98,784 90,508
242,439 95,558
1,028 323
83 948 930 6,291 14,138 28,666
240 54,368 83,287 112,672 110,035 708,739 544,778
75,000 88,000 25,000 2,483,000 878,500
3,750 19,413 74,900 393,913 415,509
- - 2,185 3,148 3,218
O 0 78,750 107,413 102,085 2,880,061 1,297,227
240 54,368 4,537 5,259 7,950 (2,171,322) (752,449)
13,197
O 0 0 0 0 13,197 0
240 54,368 4,537 5,259 7,950 (2,158,125) (752,449)
6,158 (47,615) 5,243 173,794 653,887 1,528,512
1,858,933 164,772
(6,398) (6,753) (13,151) (286,948)
$0 $0 $9,780 $5,259 $181,744 $341,544 $653,887
71
CAPITAL PROJECT FUNDS
Capital Project Funds account for the acquisition or construction of major capital facilities other
than those financed by Proprietary Funds and Trust Funds. The City maintained the following
Capital Project Funds during the year
Capital Improvement Projects - to account for the proceeds from Equipment Certificates.
Closed Bond Fund - to account for excess funds from matured bond issues.
Community Development Block Grant - to account for the financial activity related to
projects funded by CDBG programs.
Dedicated Parks - to account for the receipt and use of monies collected from dedicated
parks fees.
Area and Unit Charge - to account for the collection of water and sewer unit charges to be
used for debt payments and construction of infrastructure.
MSA Construction - to account for the collection of assessments on MSA projects.
Sealcoating - to account for money received from assessments and developer deposits for
future street sealcoating projects.
Surface Water Management - to account for the financing of surface water management
and storm water improvements.
SAC Revolving - to account for refunds from the Metropolitan Council Environmental
Service for properties that paid Sewer Area Charges (SAC) that will be collected in the
future.
Construction Funds - to account for the construction of public improvements.
Apollo Business Park - to account for costs of developing the City's industrial park.
Town Center Project - to account for costs associated with the construction of the City
Town Center project.
Tax Increment - to account for development projects financed with tax increments.
73
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 1996
With Comparative Totals For December 31, 1995
Area
Capital Closed and
Improvement Bond Dedicated Unit MSA
Projects Fund Parks (',}large Construction
Assets
i
Cash and investments $41,583 $918,106 $280,485 $4,735,588 $54,798 ..,
Accounts receivable - - 68,844 -
Due from other governmental units 230,512
Interfund receivable 1,040,283
Taxes receivable:
Delinquent 603
Due from County 227
Delinquent tax increment
Special assessments receivable:
Delinquent 5,289 7,071
Deferred 87,046 2,255,313 -`
City property - -
Due from County 1,777
Total assets
Liabilities and Fund Balance
$41,583 $1,011,271 $280,485 $8,339,388 $54,798
Liabilities:
Interfund payable $ - $ - $ - $ - $
Accounts payable 4,307 341 418 14,554
Contracts payable - 24,976
Due to other governmental units 5,751 -
Deferred revenue 92,938 2,262,384
Total liabilities 4,307 99,030 418 2,301,914 0
Fund balance (deficit):
Unreserved:
Designated:
Committed contracts 112,721
Capital improvements 5,924,753 54,798
Equipment acquisition 37,276 - - -
Park improvements - 280,067
Undesignated 912,241 -
Total fund balance (deficit) 37,276 912,241 280,067 6,037,474 54,798
Total liabilities and fund balance $41,583 $1,011,271 $280,485 $8,339,388 $54,798
74
Maim
rah
%.
Statenent 12
Page 1 of 2
Surface
- Street Water SAC Interim 1994 1995 1996
Reconstruction Sealcoating Management Revolving Construction Construction Construction Construction
$20,435 $272,633 $737,585 $524,555 $16,223 $ - $10,674 $1,979,042
44 531
299,022 115,355 235,798
92 594
658,323
$319,457 $388,124 $974,508 $524,555 $16,223 $658,323 $10,674 $1,979,042
$ $ $ - $ $ $589,358 $ $ -
- 2,747 7,227 10,011
' 79,498 86,134
299,022 115,399 236,329
299,022 115,399 239,076 0 0 676,083 0 96,145
- 10,674 64,116
._ 2n sac 272,725 735 ,432 524 ,555 16,223 t_81$,781
(17,760) -
20,435 272,725 735,432 524,555 16,223 (17,760) 10,674 1,882,897
$319,457 $388,124 $974,508 $524,555 $16,223 $658,323 $10,674 $1,979,042
75
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 1996
With Comparative Totals For December 31, 1995
Tax
Apollo Apollo Town Increment
1997 Business Drive Center Financing
Construction Park Construction Project 1 -1
Assets
Cash and investments $ $191,557 $53,745 $ $346,392
Accounts receivable - - -
Due from other governmental units 64,245
Interfund receivable -
Taxes receivable:
Delinquent
Due from County 3,131
Delinquent tax increment 1
Special assessments receivable:
Delinquent
Deferred 8,038
City property -
Due from County
Total assets $0 $199,595 $117,990 SO $349,524
Liabilities and Fund Balance
Liabilities:
Interfund payable $117,014 $ - $ - $17,789 $ -
Accounts payable 5,839 840 18,747 57
Contracts payable - -
Due to other governmental units 1,567
Deferred revenue 8,038 1
Total liabilities 122,853 8,038 840 36,536 1,625
Fund balance (deficit):
Unreserved:
Designated:
Committed contracts
76
Capital improvements 191,557 117,150 347,899
Equipment acquisition
Park improvements
Undesignated (122,853) (36,536)
Total fund balance (deficit) (122,853) 191,557 117,150 (36,536) 347,899
Total liabilities and fund balance $0 $199,595 $117,990 $0 $349,524
OW.
Statement 12
Page 2 of 2
Tax Tax Tax Tax Tax Tax
Increment Increment Increment Increment Increment Increment
Financing Financing Financing Financing Financing Financing Totals
1 -2 1-4 1 -5 1-6 1 -7 3 -1 1996 1995
$150,711
742
$151,453
$ $ $ $ $10,334,112 $7,843,605
- 68,844 300
953,080 333,733
1,040,283 836,180
603 512
3,788 7,888 4,457
1 2,640
$0 $0 $0 $3,788
12,935 30,160
3,000,572 1,732,173
10,510
2,463 14,007
$0 $15,420,781 $10,808,277
$ - $3,081 $1,342 $27,235 $181,225 $2,542 $939,586 $704,104
57 - - 65,145 87,696
'" 190,608 151,128
1,127 1,379 429 343 2,473 1,449 14,518 13,397
- - - - 3,014,111 1,775,995
1,184 4,460 1,771 27,578 183,698 3,991 4,223,968 2,732,320
187,511 268,574
150,269 - 10,174,577 7,468,606
- - 37,276 -
(27,578) 252,489 249,014
(4,460) (1,771) (179,910) (3,991) 544,960 89,763
150,269 (4,460) (1,771) (27,578) (179,910) (3,991) 11,196,813 8,075,957
$151,453 $0 $0 $0 $3,788 $0 $15,420,781 $10,808,277
77
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 1996
With Comparative Totals For The Year Ended December 31, 1995
Capital Closed Area and
Improvement Bond Dedicated Unit MSA
Projects Fund Parks Charge Construction
Revenue:
General property taxes:
Current and delinquent $ - $630 $ - $ $ -
Fiscal disparities - 15
Tax increments - - -
Intergovernmental:
State:
MSA construction - 230,513 -
County:
Other
Special assessments:
Current and delinquent - 54,651 173,220 80
Prepayments 54,627 1,095,208
Penalties and interest - 2,195 - 4,804 27
Interest on investments 4,400 38,573 12,945 281,713 2,535
Refunds and reimbursements 1,840 - - - -
Park dedication fees - 42,560 -
Utility charges - - 239,142
Total revenue 6,240 150,691 55,505 2,024,600 2,642
Expenditures:
Current:
General government:
Contractual services 1,455 14,700 5,888 47,898 ...,,k
Capital outlay:
General government 90,182
Public safety 104,624
Public works -
Parks, recreation and forestry 6,177 18,564 -
Construction/acquisition - - 936,442
Total expenditures 202,438 14,700 24,452 984,340 0
Revenue over (under) expenditures (196,198) 135,991 31,053 1,040,260 2,642
Other financing sources (uses):
Operating transfer from General Fund 24,000 - - -"
Operating transfer from Capital Project Funds - -
Operating transfer from Enterprise Funds -
Operating transfer to Capital Project Funds - - - .�
Operating transfer to Enterprise Funds - -
Bond proceeds 225,000 - 910,938
Total other financing sources (uses) 249,000 0 0 910,938 0
AIM
.-1
Net increase (decrease) in fund balance 52,802 135,991 31,053 1,951,198 2,642
Fund balance (deficit) - January 1 (15,526) 763,099 249,014 5,945,209 52,156
Residual equity transfer in 13,151
Residual equity transfer out - (1,858,933)
Fund balance (deficit) - December 31 $37,276 $912,241 $280,067 $6,037,474 $54,798
78
Statement 13
Page 1 of 2
Surface
Street Water SAC Interim 1994 1995 1996
Reconstruction Seakoating Management Revolving Construction Construction Construction Construction
- S - 8 - 8 - S - S - S - 8 -
658,323
- 8,341 39,305 - - - 7,172
20,241 54,713 221,335 - - 43,293 -
102 1,130 - - -
194 11,073 27,676 24,289 166 - 239 7,158
24,673 - - - 1,628 -
20,435 98,902 289,446 24,289 166 659,951 50,704 7,158
- 19,229
29,605 50,542 - - - -
-
343,175 5,000 1,780,544
0 29,605 69,771 0 0 343,175 5,000 1,780,544
20,435 69,297 219,675 24,289 166 316,776 45,704 (1,773,386)
0
20,435
3,717,843
0 0 0 0 0 0 3,717,843
69,297 219,675 24,289 166 316,776 45,704 1,944,457
203,428 515,757 500,266 16,057 (334,536) (35,030) (61,560)
820,435 8272,725 $735,432 $524,555 816,223 (817,760) $10,674 81,882,897
79
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 1996
With Comparative Totals For The Year Ended December 31, 1995
Apollo Apollo Town Tax Increment
1997 Business Drive Center Financing
Construction Park Construction Project 1 -1
Revenue:
General property taxes:
Current and delinquent $ - S - S - $ - S -
Fiscal disparities
Tax increments
Intergovernmental:
State:
MSA construction
County:
Other
Special assessments:
Current and delinquent
Prepayments
Penalties and interest -
Interest on investments 7,012 2,016 12,904
Refunds and reimbursements - 244,726 - -
Park dedication fees - -
Utility charges
Total revenue 0 252,626 2,016 0 244,719
Expenditures:
Current:
General government:
Contractual services 7,101 36,536 68,172
Capital outlay:
General government -
Public safety
Public works
Parks, recreation and forestry - - -
Construction /acquisition 122,853 217,284 3,514
Total expenditures 122,853 224,385 3,514 36,536 68,172
Revenue over (under) expenditures (122,853) 28,241 (1,498) (36,536) 176,547
Other financing sources (uses):
Operating transfer from General Fund - - - -
Operating transfer from Capital Project Funds
Operating transfer from Enterprise Funds
Operating transfer to Capital Project Funds (22,122)
Operating transfer to Enterprise Funds
Bond proceeds - -
Total other financing sources (uses) 0 0 0 0 (22,122)
Net increase (decrease) in fund balance (122,853) 28,241 (1,498) (36,536) 154,425
Fund balance (deficit) - January 1 163,316 118,648 193,474
Residual equity transfer - -
Residual equity transfer out
Fund balance (deficit) - December 31 ($122,853) $191,557 $117,150 ($36,536) X99
888
- 231,815
80
VIII
WIWI
vow
Statement 13
Page 2 of 2
Tax Increment Tax Increment Tax Increment Tax Increment Tax Increment Tax Increment
Financing Financing Financing Financing Financing Financing Totals
1 -2 1-4 1 -5 1-6 1 -7 3 -1 1996 1995
$ - $ - $ - $ - $ - $ - $630 $1,545
_ - - 15
120,258 13,255 10,373 2,606 378,307 313,611
■
- 230,513 613,806
658,323 269,488
- 283,657 288,966
- 1,489,417 1,127,837
- - - - 8,258 15,726
3,444 - - 436,337 440,823
3,500 276,367 238,616
- - 42,560 38,645
239,142 -
123,702 13,255 0 0 13,873 2,606 4,043,526 3,349,063
2,302 3,768 429 1,539 5,930 1,216 216,163 388,397
- 30,000 - 120,182 35,126
- - - - - 104,624 105,042
- - - - 80,147 96,583
- - - 24,741 90,821
-
- - - 3,408,812 2,847,938
2,302 3,768 429 1,539 35,930 1,216 3,954,669 3,563,907
121,400 9,487 (429) (1,539) (22,057) 1,390 88,857 (214,844)
- - - 24,000 -
22,122 - - 22,122 1,634,764
_ - - 179,250
- - - (22,122) (1,634,764)
- (104,565)
- 4,853,781 176,000
_
0 22,122 0 0 0 0 4,877,781 250,685
121,400 31,609 (429) (1,539) (22,057) 1,390 4,966,638 35,841
w
28,869 (36,069) (1,342) (26,039) (157,853) (5,381) 8,075,957 7,917,940
13,151 122,176
(1,858,933) -
$$1150,2=. 69 ($4,460 ($1,771) ($27,578) (S179,910). , ($3,991) $11,196,813 $8,075,957
81
ENTERPRISE FUNDS
Enterprise Funds are used to account for operations that are financed and operated in a manner
— similar to private business enterprises - where the intent of the government's council is that the cost
of providing goods or services to the general public on a continuing basis be financed or recovered
primarily through user charges; or where the government's council has decided that periodic
determination of net income is appropriate for accountability purposes. The City maintained the
following Enterprise Funds during the year:
Water Fund - to account for customer water and service charges that are used for
financing water operating expenses.
Sewer Fund - to account for customer sewer and service charges that are used for
financing sewer operating expenses.
Gas Utility Fund - to account for costs associated with the Circle Pines Gas Utility.
Ulm
83
C1TY OF LINO LAKES, MINNESOTA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
December 31, 1996
With Comparative Totals For December 31, 1995
Statement 14
Assets
Gas Totals
Water Sewer Utility 1996 1995
Current assets:
Cash and cash equivalents $1,693,516 $302,528 $ - $1,996,044 $554,540
Accounts receivable 90,357 146,177 236,534 253,559
Due from other governmental units - - - 578
Prepaid items 1,897 1,825 3,722 28,837
Total current assets 1,785,770 450,530 0 2,236,300 837,514
Fixed assets:
Buildings 48,690 48,690 48,690
Equipment 62,482 50,958 113,440 88,781
Water and sewer system 7,702,000 9,771,617 17,473,617 15,900,081
Construction in progress 2,755,152 - 2,755,152 -
Total fixed assets 10,568,324 9,822,575 0 20,390,899 16,037,552
Less: Allowance for depreciation (786,378) (1,061,901) (1,848,279) (1,518,864)
Subtotal 9,781,946 8,760,674 0 18,542,620 14,518,688
Acquisition costs - gas utility - 2,375 2,375 2,375
Net fixed assets 9,781,946 8,760,674 2,375 18,544,995 14,521,063
Total assets $11,567,716 $9,211,204 $2,375 $20,781,295 $15,358,577
Liabilities and Fund Equity
Current liabilities:
Interfund payable $ - $ - $11,309 $11,309 $2,424
Accounts payable 11,936 4,484 16,420 11,456
Salaries payable 1,503 1,790 3,293 1,805
Contracts payable 624,369 - 624,369 -
Accrued interest payable 68,574 68,574 26,420
Due to other governmental units 7,367 18,834 26,201 17,617
Bonds payable - current portion 50,000 - 50,000 50,000
Total current liabilities 763,749 25,108 11,309 800,166 109,722
Long -term liabilities:
Bonds payable - long term 4,215,000 4,215,000 945,000
Compensated absences - payable 7,677 3,958 11,635 9,579
Total liabilities 4,986,426 29,066 11,309 5,026,801 1,064,301
Fund equity:
Contributed capital 6,047,749 8,733,933 14,781,682 13,508,011
Retained earnings (deficit) 533,541 448,205 (8,934) 972,812 786,265
Total fund equity 6,581,290 9,182,138 (8,934) 15,754,494 14,294,276
Total liabilities and fund equity $11,567,716 $9,211,204 $2,375 $20,781,295 $15,358,577
84
CITY OF LINO LAKES, MINNESOTA
- ENTERPRISE FUND
COMBINING STATEMENT OF REVENUE, EXPENSES
AND CHANGES IN RETAINED EARNINGS
For The Year Ended December 31, 1996
With Comparative Totals For The Year Ended December 31, 1995
Statement 15
Gas Totals
Water Sewer Utility 1996 1995
VI
Operating revenue:
-
Charges for services $377,764 $508,407 $ $886,171 $730,431
- Hook -up charges 24,125 19,100 43,225 46,075
Water meter sales 28,960 - 28,960 22,121
Other operating revenue 148 148 22,968
Total operating revenue 430,997 527,507 0 958,504 821,595
Operating expenses:
Personal services 73,337 71,844 145,181 133,505
- Materials and supplies 40,019 2,267 42,286 48,115
_ Contractual services 47,619 17,828 8,885 74,332 26,330
Repair and maintenance 6,351 2,225 - 8,576 14,010
- MCES sewer charges - 260,421 260,421 236,388
Depreciation:
Purchased assets 25,618 3,932 29,550 23,020
Contributed assets 115,843 184,021 299,864 281,455
,,
Utilities 41,472 42,200 83,672 67,604
Other 1,980 1,871 3,851 3,261
Total operating expenses 352,239 586,609 8,885 947,733 833,688
- Net income (loss) from operations 78,758 (59,102) (8,885) 10,771 (12,093)
▪ Other income (expense):
Interest on investments 35,313 11,480 46,793 26,275
Area and unit charges - - 179,250
N. Bond interest (144,228) (144,228) (63,718)
_ Paying agent fees (26,653) (26,653) (400)
Total other income (expense) (135,568) 11,480 0 (124,088) 141,407
Net income (loss) before operating transfers (56,810) (47,622) (8,885) (113,317) 129,314
Operating transfers:
Operating transfer from Capital Project Funds 104,565
Operating transfer to Capital Project Funds (179,250)
Total operating transfers 0 0 0 0 (74,685)
Net income (loss) (56,810) (47,622) (8,885) (113,317) 54,629
Credit arising from transfer of depreciation
to contributed capital 115,843 184,021 299,864 281,455
- Retained earnings (deficit) - January 1 474,508 311,806 (49) 786,265 450,181
Retained earnings (deficit) - December 31 $533,541 $448,205 ($8,934) $972,812 $786,265
85
CITY OF LINO LAKES, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For The Year Ended December 31, 1996
With Comparative Totals For The Year Ended December 31, 1995
Statement 16
Gas Totals
r
i
Water Sewer Utility 1996 1995
Cash flows from operating activities:
Operating income (loss) $78,758 ($59,102) ($8,885) $10,771 ($12,093) ...
Adjustments to reconcile operating income (loss) to
net cash flows from operating activities:
Depreciation 141,461 187,953 329,414 304,475 •.
Change in assets and liabilities:
Decrease (mcrease) in receivables 44,053 (26,450) 17,603 (13,972)
Decrease (increase) in prepaid items 1,373 23,742 25,115 (5,509)
Increase (decrease) in payables 631,550 9,911 8,885 650,346 (1,797)
Net cash flows from operating activities 897,195 136,054 0 1,033,249 271,104
Cash flows from noncapital financing activities:
Collection of area and unit charges 179,250
Operating transfer to Capital Project Funds (179,250)
Net cash flows from noncapital financing activities 0 0 0 0 0
Cash flows from capital and related financing activities:
Principal paid on revenue bonds (50,000) (50,000) (40,000)
Interest and paying agent fees on revenue bonds (88,887) (88,887) (64,967)
Operating transfer from Capital Project Funds 104,565
Proceeds from issuance of bonds 3,283,495 3,283,495
Acquisition of fixed assets (2,770,029) (9,782) - (2,779,811) (39,626) ...
Net cash flows from capital
and related financing activities 374,579 (9,782) 364,797 (40,028)
Cash flows from investing activities:
Interest on investments 31,978 11,480 - 43,458 26,275
Net increase in cash and cash equivalents 1,303,752 137,752 0 1,441,504 257,351
Cash and cash equivalents - January 1 389,764 164,776 554,540 297 189
Cash and cash equivalents - December 31 $1,693,516 $302,528 $0 $1,996,044 $554,540
Noncash investing, capital and financing activities:
- Distribution system assets in the amounts of $ 942,649 and $796,899 were contributed to the Water Fund in 1996 and 1995,
respectively.
- Collection system assets in the amounts of $630,886 and $1,030,000 were contributed to the Sewer Fund in 1996 and 1995,
respectively.
86
ant
AGENCY FUNDS
Agency Funds are used to account for assets held by the City as an agent for individuals, private
organizations, other governments and/or other funds. The City maintained the following Agency
Funds during the year:
Contractor's Deposits - to account for pass - through costs relating to prospective
developers.
Pending Assessments Deposits - to account for prepayment of special assessments by
developers prior to Council adoption.
Investment Fund - to account for the pooling of investments of the City.
Deferred Compensation - to account for employee contributions to the City authorized
deferred compensation plan.
IMAO
87
CITY OF LINO LAKES, MINNESOTA
AGENCY FUNDS
COMBINING BALANCE SHEET
December 31, 1996
With Comparative Totals For December 31, 1995
Statement 17
Assets
Cash and investments
Assets with deferred
compensation plan administrator
Accrued interest receivable
Deposits receivable
Contractors
Deposits
$174,498
160,939
Total assets $335,437
Liabilities
Interfund payable
Accounts payable
Deposits payable
Due to other governmental units
Deferred compensation payable
Total liabilities
88
Pending
Assessment Investment Deferred Totals
Deposits Fund Compensation 1996 1995
$26,681 $ $ - $201,179
467,350 467,350
87,323 87,323
160,939
$26,681 $87,323 $467,350 $916,791
$ - $ -
16,373 -
319,005 26,681
59 -
$335,437 $26,681
$87,323
$198,314
362,109
67,317
65,261
$693,001
$ - $87,323 $67,317
16,373 30,659
345,686 232,897
59 19
467,350 467,350 362,109
$87,323 $467,350 $916,791 $693,001
CITY OF LINO LAKES, MINNESOTA
AGENCY FUNDS Statement 18
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For The Year Ended December 31, 1996
Balance Balance
January 1, December 31,
•., 1996 Additions Deletions 1996
Contractors deposits:
Assets
Cash and investments $198,314 $1,249,461 $1,273,277 $174,498
Deposits receivable 65,261 388,130 292,452 160,939
Total assets $263,575 $1,637,591 $1,565,729 $335,437
- Liabilities
Accounts payable $30,659 $1,250,202 $1,264,488 $16,373
Deposits payable 232,897 1,036,207 950,099 319,005
Due to other governmental units 19 431 391 59
Total Liabilities $263,575 $2,286,840 $2,214,978 $335,437
-
Accrued interest receivable 67,317 87,323 67,317 87,323
Deposits receivable 65,261 388,130 292,452 160,939
Total assets $693,001 $2,086,144 $1,862,354 $916,791
Pending Assessment Deposits:
Assets
Cash and investments $ $255,584 $228,903 $26,681
Liabilities
Deposits payable $ $255,584 $228,903 $26,681
Investment Fund:
Assets
Accrued interest receivable $67,317 $87,323 $67,317 $87,323
Liabilities
Interfund payable $67,317 $87,323 $67,317 $87,323
Deferred Compensation:
Assets
Assets with deferred
compensation plan administrator $362,109 $105,646 $405 $467,350
Liabilities
Deferred compensation payable $362,109 $105,241 $ $467,350
Totals -All Trust and Agency Funds:
Assets
Cash and investments $198,314 $1,505,045 $1,502,180 $201,179
Assets with deferred
compensation plan administrator 362,109 105,646 405 467,350
Liabilities
Interfund payable $67,317 $87,323 $67,317 $87,323
Accounts payable 30,659 1,250,202 1,264,488 16,373
Deposits payable 232,897 1,291,791 1,179,002 345,686
Due to other governmental units 19 431 391 59
Deferred compensation payable 362,109 105,241 467,350
-
Total liabilities $693,001 $2,734,988 $2,511,198 $916,791
89
GENERAL FIXED ASSETS ACCOUNT GROUP
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.
91
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE
For The Year Ended December 31, 1996
Statement 19
Land and improvements
Buildings and structures
Equipment and furniture
Machinery and vehicles
Other improvements
Totals
Investment in General Fixed Assets from:
General Fund
Capital Project Funds
Grants
Donations
Debt Service Funds
Assets acquired before January 1, 1992
Total investment in General Fixed Assets
92
Balance Balance
January 1, December 31,
1996 Additions Deletions 1996
$649,600 $ $ $649,600
1,539,500 - 1,539,500
840,325 127,916 39,446 928,795
763,654 92,648 37,941 818,361
174,313 16,384 800 189,897
$3,967,392 $236,948
$78,187 $4,126,153
YZNI
$220,821
1,469,836
1,057 .�
63,179
61,400
2,309,860
$4,126,153
w
Vow
Ilmow
■
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
As of December 31, 1996
Statement 20
Land Buildings Equipment Machinery
and and and and Other
Improvements Structures Furniture Vehicles Improvements Total
General government:
Administration/finance $ - $ - $2,012 $12,135 $ - $14,147
Elections 21,531 - 21,531
Economic development - 19,201 1,181 20,382
Engineering /planning - 3,189 11,630 1,416 16,235
Government buildings 201,000 1,539,500 144,727 - 17,104 1,902,331
Senior center - - 2,500 - 2,500
Total general government 201,000 1,539,500 173,959 42,966 19,701 1,977,126
Public safety:
Police
Building inspection
Total public safety
Public works:
Streets
Shop
Surface water management
Total public works
0
0
101,594 262,771 15,000 379,365
- 6,459 - 6,459
0 101,594 269,230 15,000 385,824
287,232 390,395 185 677,812
35,528 35,528
17,128 17,128
0 339,888 390,395 185 730,468
Parks, recreation and forestry:
Parks, recreation and forestry 448,600 313,354 115,770 155,011 1,032,735
Total parks, recreation and forestry 448,600 0 313,354 115,770 155,011 1,032,735
Totals $649,600 $1,539,500 $928,795 $818,361 $189,897 $4,126,153
93
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
For The Year Ended December 31, 1996
Statement 21
Balance Balance
1/1/96 Transfers Additions Deletions 12/31/96
General government:
Administration/finance $14,147 $ - $ - $ - $14,147
Elections 21,531 - - 21,531
Economic development 4,681 19,201 3,500 20,382
Engineering /planning 12,905 2,500 830 - 16,235
Government buildings 1,868,723 (2,500) 54,654 18,546 1,902,331
Senior center 2,500 - - - 2,500
Total general government 1,924,487 0 74,685 22,046 1,977,126
Public safety:
Police 329,775 52,090 2,500 379,365
Building inspections 19,900 - 13,441 6,459
Total public safety 349,675 0 52,090 15,941 385,824
Public works:
Streets 689,985 17,127 29,300 677,812
Shop 36,128 - 600 35,528
Surface water management 17,128 17,128
Total public works 726,113 0 34,255 29,900 730,468
Parks, recreation and forestry
Parks, recreation and forestry 967,117 75,918 10,300 1,032,735
Total parks, recreation and forestry 967,117 0 75,918 10,300 1,032,735
Totals $3,967,392 $0 $236,948 $78,187 $4,126,153
94
GENERAL LONG -TERM DEBT ACCOUNT GROUP
The General Long Tenn Debt Account Group is used to account for long -term debt of the City
other than debt recorded in the Enterprise Funds.
Imo
IMIIM
Wow
95
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF GENERAL LONG - TERM DEBT
December 31, 1996
Statement 22
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,
1996 1995
$341,544 $701,502
8,900,771 6,291,323
$9,242,315 $6,992,825
Bonds payable:
General Obligation Bonds:
1994 Equipment Certificates $ - $75,000
1995 Equipment Certificates 88,000 176,000
1996 Equipment Certificates 225,000 -
Public Project Revenue Bonds - 1990A 1,065,000 1,090,000
Total general obligation bonds 1,378,000 1,341,000
Special assessment bonds:
G. O. Improvement Bonds of 1992A 2,990,000 3,190,000
G. O. Temporary Improvement Bonds of 1994A - 2,095,000
G. O. Improvement Bonds of 1996A 4,685,000
Total special assessment bonds 7,675,000 5,285,000
Total bonds payable
Assessments payable on City property
Contract for deed payable
Compensated absences payable
Total general long -term debt
96
9,053,000 6,626,000
10,510
172,300
189,315 184,015
$9,242,315 $6,992,825
SUPPLEMENTARY
FINANCIAL
INFORMATION
97
C1TY OF LINO LAKES, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 1996
Interest
Rates
Dated
Final
Maturity
Date
General Obligation Bonds:
1994 Equipment Certificates 5.00 3/1/94 12/31/96
1995 Equipment Certificates 5.00 2/1/95 12/31/97
1996 Equipment Certificates 6.00 2/1/96 12/31/99
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 1992A 6.51 4/1/92 2/1/06
G. O. Temporary Improvement Bonds of 1994A 4.90 11/1/94 11/1/97
G. O. Improvement Bonds of 1996A 5.05 10/1/96 2/1/07
Total General Improvement Bonds with special assessments pledged
Revenue Bonds:
G. O. Water Revenue Bonds of 1992B 6.67 4/1/92 2/1/08
G. O. Water Revenue Bonds of 1996B 5.48 10/1/96 2/1/12
Total Revenue Bonds
Total - all bonds
Contract for deed payable*
Total City indebtedness
*The City prepaid all princial and accrued interest on April 23, 1996.
98
7.00
1/9/92 4/23/96
Exhibit 1
Prior Years Principal Interest
Original Payable 1996 Payable Due Due
Issue Payments 1/1/96 Issued Payments 12/31/96 In 1997 In 1997
$150,000 $75,000 $75,000 $ - $75,000 $ - $ - $ -
176,000 - 88,000 88,000 88,000 5,280
- 225,000 - 225,000 - 225,000 75,000 25,853
1,115,000 25,000 1,090,000 - 25,000 1,065,000 25,000 73,294
1,490,000 100,000 1,341,000 225,000 188,000 1,378,000 188,000 104,427
3,640,000 450,000 3,190,000 200,000 2,990,000 220,000 182,005
_. 2,095,000 - 2,095,000 2,095,000 - - -
4,685,000 - 4,685,000 - 4,685,000 184,083
10,420,000 450,000 5,285,000 4,685,000 2,295,000 7,675,000 220,000 366,088
1,060,000 65,000 995,000 50,000 945,000 50,000 59,545
3,320,000 - 3,320,000 - 3,320,000 - 142,917
4,380,000 65,000 995,000 3,320,000 50,000 4,265,000 50,000 202,462
16,290,000 615,000 7,621,000 8,230,000 2,533,000 13,318,000 458,000 672,977
235,300 63,000 172,300 172,300
$16,525,300 $678,000 $7,793,300 $8,230,000 $2,705,300 $13,318,000 $458,000 $672,977
Immo
timir
99
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 1996
Exhibit 2
Public
Project G. O.
Year of Equipment Equipment Revenue Improvement
Levy/ Certificates Certificates Bonds Bonds
Collection of 1995 of 1996 of 1990A of 1992A Total
1996/1997 $97,944 $105,896 $118,112 $ - $321,952
1997/1998 - 88,200 125,882 358,583 572,665
1998/1999 83,475 122,417 357,328 563,220
1999/2000 145,150 354,861 500,011
2000/2001 - 139,834 353,352 493,186
2001/2002 134,479 358,981 493,460
2002/2003 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
2009/2010 -
$97,944
100
$277,571 $1,702,159
$2,869,513 $4,947,187
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS
December 31, 1996
Exhibit 3
G.O. G.O. Public
G. 0. G. 0. Water Water Project
- Equipment Equipment Improvement Improvement Revalue Revenue Revenue
Cextifcatcs Cites Bonds Bonds Bonds Bonds Bonds
1995 1996 of 1992A of 1996A of 1992B of 1996B of 1990A Totals
Bonds payable 888,000 $225,000 82,990,000 $4,685,000 8945,000 83,320,000 81,065,000 813,318,000
Future inter at payable 5 280 39 353 1 051 743 1,261,413 430,286 1 787 231 618 152 5 193 458
Totals 893,280 8264,353 $4,041,743 85,946,413 $1,375,286 $5,107,231 81,683,152 818,511,458
Payments to maturity:
1997 893,280 8100,853 8402,005 8184,083 8109,545 8142,917 898,294 81,130,977
1998 84,000 418,940 514,600 111,589 254,758 111,188 1,495,075
1999 79,500 423,850 819,550 108,358 314,753 118,238 1,864,249
2000 - 417,345 767,300 114,709 303,228 114,913 1,717,495
2001 409,743 735,115 115,505 306,401 135,706 1,702,470
2002 401,080 702,565 115,900 304,075 130,625 1,654,245
2003 - 401,080 493,980 115,900 301,355 125,488 1,437,803
2004 399,460 469,460 115,495 303,108 120,275 1,407,798
2005 - 396,180 444,785 114,675 304,195 139,150 1,398,985
2006 372,060 419,965 118,310 299,725 132,100 1,342,160
2007 - 395,010 116,390 299,680 125,000 936,080
2008 118,910 298,915 117,875 535,700
2009 - - 419,034 110,725 529,759
_
2010 419,682 103,575 523,257
2011 418,864 418,864
2012 - - 416 541 416 541
NNW
893,280 8264,353 $4,041,743 85,946,413 81,375,286 85,107,231 81,683,152 818,511,458
101
CITY OF LINO LAKES, MINNESOTA
CONSTRUCTION WORK IN PROCESS
December 31, 1996
Exhibit 4
Description
Land Expended
Easements Prior
Contractor Engineering and Other Total 1996 Years
Fund 406: Area and Unit
Well N4 $358,161 $65,173 $14,931 $438,265 $273,775 $164,490
Black Duck Lift Station 6,511 27,783 34,294 27,423 6,871
Sunset Road Utilities Extension 154 419 573 * - 573
35E/Main Street trunk utilities 21,216 618 21,834 20,070 1,764
Utility Connections 10,434 - 3,537 13,971 * - 13,971
Ware Road 77,155 55,019 12,075 144,249 * - 144,249
Cedar Street lift station 165,545 32,929 5,800 204,274 204,274 -
4th Avenue trunk utilities 333,967 57,192 19,741 410,900 410,900 -
Total Fund 406 945,262 238,194 84,904 1,268,360 936,442 331,918
Fund 451: Apollo Business Park
Apollo Business Park
Fund 452: Apollo Drive Construction
Apollo Drive
2,021,295 425,177
217,284 217,284 * 217,284
158,056 2,604,528 * 3,514 2,601,014
Fund 456: 1994 Construction
Country Lake Estates 709,979 132,979 70,691 913,649 2,925 910,724
Highway 49 and Lake Drive 1,587,180 427,394 188,693 2,203,267 333,053 1,870,214
Hodgson Road Watermain 204,146 29,656 63,340 297,142 7,197 289,945
Total Fund 456 2,501,305 590,029 322,724 3,414,058 343,175 3,070,883
Fund 457: 1995 Construction
Woods of Baldwin Lake II
110,681 26,445 1,655 138,781 5,000 133,781
Fund 458: 1996 Construction
Trappers Crossing 640,833 158,790 21,414 821,037 773,648 47,389
Marshan Lake Townhomes 551,761 92,435 17,133 661,329 647,315 14,014
12th Avenue and Holly Drive 2,025 176 2,201 2,044 157
Centennial School 91,236 37,816 129,052 129,052
Pheasant Hills 7th addition 217,705 - 10,780 228,485 228,485 -
Total Fund 458 1,410,299 344,486 87,319 1,842,104 1,780,544 61,560
Fund 459: 1997 Construction
Otter Lake Road realignment 17,287 100,550 117,837 117,837
Otter Lake Service Road 1,414 1,414 1,414
Trapper's Crossing II 2,654 948 3,602 3,602 -
Total Fund 459 0 21,355 101,498 122,853 122,853 0
Totals
* Completed Project
102
$6,988,842 $1,645,686 $973,440 $9,607,968 $3,408,812 $6,199,156
Now
NNW
MEM
CITY OF LINO LAKES, MINNESOTA
INSURANCE IN FORCE
December 31, 1996
(Unaudited)
Exhibit 5
Coverage Amount
General Liability:
Bodily Injury/Property Damage 5600,000
Personal Injury/Police Professional Liability 600,000
Employee Benefit Liability 600,E
Fire Legal Liability 50,000
Medical Expense Occurrence Limit 1,000
Medical Expense Aggregate 10,000
Property Damage ($500 Deductible)
Property:
Buildings and Contents 6,477,723
Valuable Papers ($500 Deductible) 50,000
Faithful Performance Blanket Bond 500,000
Storage Tank Liability 100,000
Mobile Equipment ($500 Deductible) 627,887
EDP - Electronic Equipment ($500 Deductible) 157,142
Rented/Leased Equipment ($500 Deductible) 200,000
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 ($500 Deductible) 5,490
Workmen's compensation Statutory
Umbrella Liability 1,000,000
Crime - Theft Disappearance and Destruction ($500 Deductible) 50,000
103
C1TY OF LINO LAKES, MINNESOTA
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Exhibit 6
Tax Capacity Tax Capacity
Values Values
1996/1997 1995/1996
Taxable valuations:
Total $8,807,254 $7,825,611
Fiscal disparities:
Distribution 1,370,726 1,268,407
Contribution (367,350) (315,617)
Less: Captured Tax Increment Value (410,724) (307,790)
Totals $9,399,906 $8,470,611
Tax Tax
Certified Capacity Certified Capacity
Levy Rate Levy Rate
Taxes levied:
Revenue $3,027,448 28.171 $2,685,794 27.401
Bond and interest 321,952 2.996 354,206 3.614
Totals $3,349,400 31.167 $3,040,000 31.015
Certified levy amount is before HACA reduction. HACA is $421,891 and $415,957 for 1997 and 1996, respectively.
104
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT HOUSING DISTRICT #1 -1
- December 31, 1996
Exhibit '7
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining
Sources of funds:
Tax increment collections $1,470,000 $1,256,465 $231,815 ($18,280)
Interest on investments - 207,161 12,904 (220,065)
_. Total sources of funds 1,470,000 1,463,626 244,719 (238,345)
Uses of funds:
.. Public improvements 1,470,000 1,097,491 372,509
Administrative 55,065 67,798 (122,863)
Developer assistance 105,000 - (105,000)
.— Transfer to other funds 12,595 22,497 (35,092)
Total uses of funds 1,470,000 1,270,151 90,295 109,554
Woo
Funds remaining (deficit) $0 $193,475 $154,424 ($347,899)
Name of District: Rice Lake Estates
District Number: H-4
Type of District: Housing
- Date Certified: June 29, 1987
Duration: 25 Years
Tax Capacity:
Original 2,689
Current 185,033
Maw
VIEW
105
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT HOUSING DISTRICT #1 -2
December 31, 1996
Exhibit 8
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining -
Sources of funds:
Tax increment collections $742,200 $555,196 $120,258 $66,746
Interest on investments - 55,980 3,444 (59,424)
Total sources of funds 742,200 611,176 123,702 7,322
Uses of funds:
Public improvements 630,000 512,196 117,804
Land acquisition 65,000 - 65,000
Demolition and site preparation 10,000 10,000
Relocation costs 15,000 15,000
Administrative 22,200 57,517 1,927 (37,244)
Transfer to other funds - 12,594 375 (12,969)
Total uses of funds 742,200 582,307 2,302 157,591
Funds remaining (deficit) $0 $28,869 $121,400 ($150,269)
Name of District: Sunrise Meadows
District Number: I -5
Type of District: Economic Development
Date Certified: February 10, 1989
Duration: 10 Years
Tax Capacity:
Original 23,272
Current 136,938
106
Vow
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT FINANCING DISTRICT #1-4
December 31, 1996
Exhibit 9
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining
Sources of funds:
Bond proceeds $ - $ - $ - $ -
Tax increment collections 110,000 13,255 96,745
Refunds and reimbursements - 23,889 22,122 (46,011)
Total sources of funds 110,000 23,889 35,377 50,734
Uses of funds:
Administrative 110,000 48,044 3,768 58,188
Transfer to other funds - 11,914 - (11,914)
Total uses of funds 110,000 59,958 3,768 46,274
Funds remaining (deficit) $0 ($36,069) $31,609 $4,460
Name of District: Apollo Business Center
District Number: L -5
Type of District: Economic Development
.. Date Certified: April 20, 1990
Duration: 10 Years
Tax Capacity:
Original 1,857
Current 49,263
Vow
107
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT FINANCING DISTRICT #1 -5
December 31, 1996
Exhibit 10
Accounted
Amended for in current Amount
Budget Prior Years Year Remaining
Sources of funds:
Tax increment collections $915,000 $ - $ - $915,000
Total sources of funds 915,000 0 0 915,000
Uses of funds:
Land acquisition 155,000 155,000
Public improvements 685,000 685,000
Administrative 75,000 1,342 429 73,229
Total uses of fiords 915,000 1,342 429 913,229
Funds remaining (deficit)
Name of District: Willow Ponds Senior Housing
District Number: M-6
Type of District: Housing
Date Certified: August 25, 1993
Duration: 25 years
Tax Capacity:
Original 1,210
Current 23,508
108
$0 ($1,342) ($429) $1,771
MIIM
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT FINANCING DISTRICT #1-6
December 31, 1996
Exhibit 11
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining
Sources of funds:
Tax increment collections $41,250 $ - $ $41,250
Total sources of finds 41,250 0 0 41,250
Uses of funds:
Public improvements 32,500 32,500
Administrative 8,750 962 1,539 6,249
Transfer to other funds - 25,077 - (25,077)
Total uses of funds 41,250 26,039 1,539 13,672
Funds remaining (deficit) $0 (S26,039) ($1,539) $27,578
Name of District: Udor
- District Number: M -7
Type of District: Economic Development
Date Certified: August 23, 1994
- Duration: 10 Years
Tax Capacity:
Original 414
Current 8,331
Vow
109
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT FINANCING DISTRICT #1 -7
December 31, 1996
Exhibit 12
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining
Sources of funds:
Tax increment collections $1,038,700 $ - $10,373 $1,028,327
Refunds and reimbursements - 300 3,500 (3,800)
Total sources of funds 1,038,700 300 13,873 1,024,527
Uses of funds:
Land acquisition 598,300 137,889 30,000 430,411
Public improvements 400,400 - - 400,400
Administrative 40,000 20,264 5,930 13,806
Total uses of funds 1,038,700 158,153 35,930 844,617
Funds remaining (deficit)
Name of District: Apollo Business Park
District Number: M -9
Type of District: Economic Development
Date Certified: May 31, 1995
Duration: 11 Years
Tax Capacity:
Original 30,079
Current 64,339
110
$0 ($157,853) ($22,057) $179,910
VIEW
■
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT FINANCING DISTRICT #3 -1
December 31, 1996
Exhibit 13
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining
Sources of funds:
Tax increment collections $1,450,000 $ - $2,606 $1,447,394
Total sources of funds 1,450,000 0 2,606 1,447,394
Uses of funds:
Land acquisition 900,000 900,000
Public improvements 450,000 450,000
Administrative 100,000 5,381 1,216 93,403
Total uses of fiords 1,450,000 5,381 1,216 1,443,403
Funds remaining (deficit) $0 ($5,381) $1,390 $3,991
Name of District: Clearwater Creek Development Center
— District Number: N-4 and N -5
Type of District: Economic Development
Date Certified: June 30, 1995
... Duration: 11 Years
Tax Capacity:
Original 51,161
Current 53,888
OWN
IIIMEr
111
III.
STATISTICAL
SECTION
113
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND EXPENDITURES BY FUNCTION
Last Ten Fiscal Years
(Unaudited)
Table 1
Fiscal Total General Public Public Parks and Other
Year Expenditures Government Safety Works Recreation Functions
1987 $1,519,189 $453,372 $559,959 $393,456 S97,619 $14,783
1988 1,590,102 565,785 616,076 273,614 98,316 37,111
1989 1,896,204 624,499 750,629 377,087 142,472 1,517
1990 2,155,051 682,575 804,363 468,340 191,654 8,119
1991 2,268,639 667,448 845,420 499,737 256,034
1992 2,552,835 807,564 910,147 505,096 330,028 -
1993 2,829,202 911,230 1,025,157 565,019 327,796
1994 3,169,862 1,082,796 1,127,883 554,533 404,650
1995 3,557,038 1,173,047 1,265,064 700,873 418,054
1996 3,966,738 1,289,751 1,446,985 694,455 535,547
114
WIMP
IOW
C1TY OF LINO LAKES,IVIINNESOTA
GENERAL FUND REVENUES BY SOURCE
Last Ten Fiscal Years
(Unaudited)
Table 2
Total General
General Property Licenses Inter- Charges Fines
Fiscal Fund Taxes and Government for and Other
Year Revenue Levied Permits Revenues Services Forfeits Revenue
1987 S1,617,286 S714,892 S164,115 $545,674 $59,069 $68,448 $65,088
1988 1,792,972 769,915 229,511 549,567 86,067 70,142 87,770
1989 2,081,795 848,472 256,987 698,558 96,680 73,614 107,484
1990 2,294,649 994,399 254,620 629,919 208,981 83,618 123,112
1991 2,421,534 1,179,087 332,392 483,015 195,190 86,603 145,247
1992 2,705,794 1,206,998 493,977 607,831 210,129 79,643 107,216
1993 3,177,662 1,420,369 565,684 673,944 239,562 83,019 195,084
1994 3,295,398 1,597,542 383,388 677,337 353,026 72,454 211,651
1995 3,772,335 1,941,415 544,267 738,652 241,393 93,861 212,747
1996 4,627,532 2,327,048 788,480 816,794 308,262 86,158 300,790
115
CITY OF LINO LAKES, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
(Unaudited)
Table 3
Percent of Percent of
Total Tax Delinquent
Total Current Percentage Delinquent Total Collections Outstanding Taxes to
Fiscal Tax Tax of Levy Tax Tax To Tax Delinquent Tax
Year Levy Collections Collected Collections Collections Levy Taxes Levy
1987 $990,000 $971,947 98.18% $35,455 $1,007,402 101.76% S27,995 2.83%
1988 1,146,850 1,121,251 97.77% 8,961 1,130,212 98.55% 41,388 3.61%
1989 1,146,850 1,120,260 97.68% 16,811 1,137,071 99.15% 46,393 4.05%
1990 1,529,821 1,494,647 97.70% 21,620 1,516,267 99.11% 50,963 3.33%
1991 1,717,474 1,674,178 97.48% 24,342 1,698,520 98.90% 59,664 3.47%
1992 1,865,188 1,805,972 96.83% 24,395 1,830,367 98.13% 76,791 4.12%
1993 2,073,987 2,057,602 99.21% 50,099 2,107,701 101.63% 29,534 1.42%
1994 2,268,950 2,243,045 98.86% 15,014 2,258,059 99.52% 27,804 1.23%
1995 2,634,350 2,613,719 99.22% 21,206 2,634,925 100.02% 22,368 0.85%
1996 3,040,000 3,011,917 99.08% 15,641 3,027,558 99.59% 22,489 0.74%
Note: Does not include tax increment levies and collections.
Note: Current tax collections include State levy related credits (HACA).
116
Vow
CITY OF LINO LAKES, MINNESOTA
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
Last Ten Fiscal Years
(Unaudited)
Table 4
Current Current
Fiscal Assmts. Assmts.
Year Due Collected
1987 $388,798 $194,196
1988 312,610 204,150
1989 326,516 223,757
1990 245,618 168,442
1991 351,941 293,452
1992 379,521 306,443
_
1993 632,067 580,678
1994 387,200 355,543
1995 394,770 353,424
1996 366,146 355,609
IMEIr
•
lillos
NNW
% of Current
Collections
to Assmts.
Due
Delinquent
Assessments
Collected
Total
Collected
49.95% $190,508 $384,704
65.31% 163,841 367,991
68.53% 64,161 287,918
68.58% 107,879 276,321
83.38% 65,396 358,848
80.74% 82,664 389,107
91.87% 39,313 619,991
91.82% 32,743 388,286
89.53% 26,051 379,475
97.12% 26,831 382,440
% of Total
Collections
to Current
Assmts. Due
98.95%
117.72%
88.18%
112.50%
101.96%
102.53%
98.09%
100.28%
96.13%
104.45%
Total
Outstanding
Del. Assmts.
$189,606
123,153
161,751
132,985
126,088
118,690
43,036
36,497
10,221
21,040
117
IIIIIeI
CITY OF LINO LAKES, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL
BONDED DEBT TO TOTAL GENERAL EXPENDITURES
Last Ten Fiscal Years
(Unaudited)
Table 5
Percent of
Debt Service
Interest Total Total Expenditures
Fiscal and Debt General to General
Year Principal Other Service (1) Expenditures (2) Expenditures
1987 $35,000 $4,804 $39,804 S1,519,189 2.62%
1988 115,500 7,795 123,295 1,590,102 7.75%
1989 - 11,475 11,475 1,896,204 0.61%
1990 60,000 29,542 89,542 2,155,051 4.15%
1991 127,500 108,872 236,372 2,268,639 10.42%
1992 172,500 114,821 287,321 2,552,835 11.25%
1993 177,500 108,276 285,776 2,829,202 10.10%
1994 282,500 96,268 378,768 3,169,862 11.95%
•r 1995 228,500 96,135 324,635 3,557,038 9.12%
1996 188,000 100,248 288,248 3,966,738 7.27%
(1) Excludes tax increment, special assessment, enterprise, and EDA bonds.
(2) Includes expenditures of General Fund only.
Note: Amounts rounded to the nearest hundred.
MNIIII
Vow
119
CITY OF LINO LAKES, MINNESOTA
ASSESSED (1) AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
(Unaudited)
Taxes Real Personal Fiscal
Payable Property Property Total Disparities
1988 $31,989,771 $ 1,692,351 $33,682,122 $6,288,556
1989 4,500,713 228,822 4,729,535 902,364
1990 3,766,768 232,797 3,999,565 1,084,909
1991 4,250,314 283,565 4,533,879 1,006,228
1992 4,359,156 289,520 4,648,676 1,083,066
1993 4,557,819 309,993 4,867,812 954,529
1994 5,146,854 360,097 5,506,951 970,411
1995 6,204,237 392,508 6,596,745 879,810
1996 7,390,566 435,045 7,825,611 952,790
1997 8,344,972 462,282 8,807,254 1,003,376
(1) The State of Minnesota changed the method of calculating property taxes effective for taxes payable
in 1989. Year 1988 reflects assessed valuations. Year 1989 reflects gross tax capacity values.
Years 1990 through 1997 reflect net tax capacity values.
Source: Anoka County Department of Property Records and Taxation.
120
■
Table 6
Assessor's Estimated Ratio of Total
Net Taxable Market Value of Assessed to
Tax Increment Value Taxable Property Actual Value
($593,283) $39,377,395 S164,159,400 23.99%
(112,901) 5,518,998 187,826,200 2.94%
(141,487) 4,942,987 231,211,700 2.14%
(215,224) 5,324,883 264,013,200 2.02%
(245,834) 5,485,908 290,466,200 1.89%
(244,419) 5,577,922 320,714,400 1.74%
(256,841) 6,220,521 368,367,100 1.69%
.. (287,819) 7,188,736 435,100,000 1.65%
(307,790) 8,470,611 501,825,800 1.69%
(410,724) 9,399,906 552,696,200 1.70%
■
121
CITY OF LINO LAKES, MINNESOTA
PROPERTY TAX RATES (3) - DIRECT AND OVERLAPPING GOVERNMENTS
Last Ten Fiscal Years
(Unaudited)
Table 7
Tax Rates (Per S100 of Tax Capacity)
Year
Taxes
Payable City School (1) County Other (2)
1988 29.306 68.045 30.736 6.395
1989 20.025 53.967 27.425 5.972
1990 23.601 43.075 28.846 4.796
1991 26.564 68.717 31.400 5.133
1992 26.822 67.857 32.990 5.306
1993 29.386 60.589 32.779 6.510
1994 29.661 62.537 32.680 6.260
1995 30.772 64.308 32.765 6.977
1996 31.015 63.103 31.036 5.647
1997 31.167 66.000 30.542 5.197
(1) The majority of Lino Lakes is served by School District 12.
(2) Other includes: Metropolitan Council, Mosquito Control, Metropolitan Transit,
Rice Creek Watershed District and Forest Lake Hospital.
(3) Years after 1988 /1989 are reported as tax capacity rate.
Source: Anoka County Department of Property Records and Taxation.
122
Total
134.482
107.389
100.318
131.814
132.975
129.264
131.138
134.822
130.801
132.906
CITY OF LINO LAKES, MINNESOTA
RATIO OF NET BONDED DEBT
TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
Last Ten Fiscal Years
(Unaudited)
Table 8
Ratio of
Assessed Value Less Net Bonded
-- After Fiscal Gross Cash and Debt to Net
Disparities and Bonded Investments Net Assessed Bonded Debt
Year Population (1) Tax Increment (2) Debt (3) on Hand Bonded Debt _ Value Per Capita
—
1987 7,110 $164,159,400 $115,500 $728 $114,772 0.07% 16.14
1988 7,600 187,826,200 (1,251) 1,251 0.00% 0.16
1989 8,235 231,211,700 300,000 (11,475) 311,475 0.13% 37.82
1990 8,807 264,013,200 1,630,000 58,685 1,571,315 0.60% 178.42
1991 9,273 290,466,200 1,591,000 105,537 1,485,463 0.51% 160.19
1992 10,056 320,714,400 1,553,500 121,842 1,431,658 0.45% 142.37
1993 11,193 368,367,100 1,526,000 222,111 1,303,889 0.35% 116.49
1994 12,266 435,100,000 1,393,500 142,173 1,251,327 0.29% 102.02
1995 13,097 501,825,800 1,341,000 135,440 1,205,560 0.24% 92.05
1996 13,097 552,696,200 1,378,000 194,807 1,183,193 0.21% 90.34
(1) Population estimates provided from Metropolitan Council except for 1990 which reflects the federal census.
— (2) The State of Minnesota changed the method of calculating property taxes effective for taxes payable in 1988 and again in 1991.
Year 1987 reflects assessed valuations. Years 1988, 1989 and 1990 reflect tax capacity values. Years 1991 through 1996 reflec
tax capacity value based on a different formula than in previous years.
(3) Amount excludes tax increment, special assessment, enterprise and EDA bonds.
ti-
123
CITY OF LINO LAKES, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
INCLUDING DEBT RATIOS
December 31, 1996
(Unaudited)
Table 9
Bonded Percentage
Gross Debt Applicable City Share
Overlapping Debt: Outstanding in City(1) of Debt
Anoka County $96,501,750 5.13% S4,950,540
School District 12 59,682,000 43.82% 26,152,652
School District 624 51,070,000 2.38% 1,215,466
School District 831 18,210,000 6.65% 1,210,965
SISD 916 329,750,000 1.98% 6,529,050
Metropolitan Council 384,835,000 0.49% 1,885,692
Total Overlapping Debt 940,048,750 41,944,365
Direct Debt:
City of Lino Lakes 1,378,000 100.00% 1,378,000
Total Overlapping & Direct Debt $941,426,750 $43,322,365
Debt Ratios:
Ratio of Debt per capita (12,266 population) - overlapping $3,203
Ratio of Debt per capita (12,266 population) - direct $105
Ratio of Debt per capita (12,266 population) - total $3,308
Ratio of Debt to estimated market valuation of $552696200 7.84%
(1) Determined by ratio of net tax capacity (after fiscal disparities and tax increment adjustment)
of property subject to taxation in overlapping unit to valuation of property subject to taxation in City.
124
Mime
—
Cash in related Debt Service Funds (13,703) (10,712)
Total Debt Applicable to Debt Limit 299,297 240,288
CITY OF LINO LAKES, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 1996
(Unaudited)
Table 10
1996/1997 1995/1996
Market Value $552,696,200 S501,825,800
Debt Limit Percentage 2% 2%
Debt Limit 11,053,924 10,036,516
Total Bonded Debt 13,318,000 7,621,000
Less:
Special Assessment Bonds (7,675,000) (5,285,000)
Proprietary Bonds (4,265,000) (995,000)
Public Project Revenue Bonds (1,065,000) (1,090,000)
Legal Debt Margin
WNW
510,754,627 $9,796,228
125
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF REVENUE BOND COVERAGE
WATER FUND
Last Five Years (3)
(Unaudited)
Table 11
Fiscal Gross Operating
Year Revenues (1) Expenses (2)
Net Revenue
Available
for Debt
Service
1992 S232,586 $142,923 $89,663
1993 332,888 169,431 163,457
1994 394,245 149,764 244,481
1995 461,747 177,724 284,023
1996 466,310 210,778 255,532
Interest
and
Principal Fiscal Charges
S -
Total Coverage
$57,632 $57,632 1.56
75,350 75,350 2.17
25,000 66,080 91,080 2.68
40,000 64,118 104,118 2.73
50,000 170,881 220,881 1.16
(1) Total Water Fund revenues and transfers in.
(2) Total Water Fund expenses exclusive of depreciation, interest on debt and fiscal charges.
(3) Prior to 1992 the City's Water Fund had no debt.
126
C1TY OF LINO LAKES, MINNESOTA
PRINCIPAL TAXPAYERS
(Unaudited)
Table 12
Ten of the City's Largest Taxpayers Percent of
1995 Net Tax City's Net
Taxpayer Type of Business Capacity Tax Capacity
Northern States Power Utility S241,523 2.85%
Minnesota Pipeline Co. Utility 63,797 0.75%
Minnegasco, Inc. Utility 55,486 0.66%
Anoka Electric Cooperative Utility 54,142 0.64%
Moline Concrete Products Co. Manufacturing 51,917 0.61%
Lloyd McKinney Custom Manufacturing 37,381 0.44%
Rehbein & Winge Development 26,423 0.31%
Glenn Rehbein Development 25,211 0.30%
Sunset Oaks Limited Partnership Development 21,506 0.25%
United Power Association Utility 20,544 0.24%
Source: Anoka County Department of Property Records and Taxation.
127
CITY OF LINO LAKES, MINNESOTA
PROPERTY VALUE, CONSTRUCTION PERMITS AND BANK DEPOSITS
Last Ten Years
(Unaudited)
Table 13
Fiscal Property Number of Permit Bank
Year Value (1) Building Permits Valuation Deposits (2)
1987 $164,159,400 318 S13,091,697 Not Available
1988 187,826,200 330 18,145,012 Not Available
1989 231,211,700 349 17,653,380 Not Available
1990 264,013,200 350 23,229,413 Not Available
1991 290,466,200 396 34,041,557 Not Available
1992 320,714,400 615 36,636,546 Not Available
1993 368,367,100 628 44,537,437 Not Available
1994 435,100,000 566 26,713,028 Not Available
1995 501,825,800 598 40,636,691 Not Available
1996 552,696,200 588 74,061,188 Not Available
(1) Assessor's estimated market value of taxable property from Table 6.
(2) Bank deposits are excluded due to the bank within the City is consolidated with banks outside the City.
As a result, local deposits are unavailable.
Source: City Inspection records.
128
CITY OF LINO LAKES, MINNESOTA
DEMOGRAPHIC STATISTICS
—
(Unaudited)
Table 14
Fiscal School Number of Unemployment
Year Population (2) Enrollment (1) Households (2) Rate (3)
1987 7,110 3,646 2,112 4.6
1988 7,600 3,912 2,276 3.6
1989 8,235 4,130 2,448 4.2
1990 8,807 4,382 2,603 4.6
1991 9,273 4,638 2,777 4.9
— 1992 10,056 4,931 2,974 4.8
1993 11,193 5,219 3,313 4.8
1994 12,266 5,587 3,671 3.6
1995 13,097 5,932 3,899 3.1
1996 13,097 5,903 3,899 2.6
(1) Centennial School District 12
(2) Metropolitan Council except 1990 is Federal Census
— (3) Minnesota Department of Economic Security
s
WIWI
129
CITY OF LINO LAKES, MINNESOTA
MISCELLANEOUS STATISTICS
(Unaudited)
Table 15
Date of Incorporation
Date of Adoption of City Charter
Form of Government
Area of City (square miles)
Miles of Streets:
Trunk Highways
Paved - County
Paved - City
Number of Street Lights
Fire Protection:
Centennial Fire District
Total Number of Stations
(within Lino Lakes)
Total Number of Volunteers
(within Lino Lakes)
Police Protection:
Number of Stations
Number of sworn officers
Recreation:
Park area
Number of Parks & Playgrounds
Trails
Municipal Water:
Gallons Pumped
Number of Connections
Miles of watermain
Number of Fire Hydrants
Water Tower Capacity (gallons)
Municipal Sewer:
Number of Connections
Miles of sewermain
Employees:
Fulltime
Parttime
5/11/55
1/12/82
Charter
33
17.4
28.5
83.1
301
3
1
50
15
1
17
137.7 acres
21
9 miles
256,814,000
2,157
24.59
366
1 million
2,391
36.66
Elections:
Registered voters - last general election 7,853
Number of votes cast 5,967
Percent of registered voters voting 76%
130