HomeMy WebLinkAboutComprehensive Annual Financial Report 12/31/2001COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LINO LAKES, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2001
Prepared By: Finance Department
Alan Rolek, Director of Finance
Paula Schloer, Accountant
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
I. INTRODUCTORY SECTION
Principal City Officials 1
Organization Chart 2
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting 11
II. FINANCIAL SECTION
Independent Auditor's Report 12
General Purpose Financial Statements
Combined Balance Sheet - All Fund Types and Account Groups Statement 1 13
Combined Statement of Revenue, Expenditures and Changes in
Fund Balance - All Governmental Fund Types Statement 2 15
Combined Statement of Revenue, Expenditures and Changes in
Fund Balance - Budget and Actual - General and
Special Revenue Fund Types Statement 3 16
Combined Statement of Revenue, Expenses and Changes in Retained
Earnings - All Proprietary Fund Types Statement 4 17
Combined Statement of Cash Flows - All Proprietary Fund Types Statement 5 18
Notes to Financial Statements 19
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
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Reference Number
Combining, Individual Fund and Account Group Financial Statements
General Fund:
Balance Sheet Statement 6 41
Statement of Revenue, Expenditures and Changes in
Fund Balance - Budget and Actual Statement 7 42
Special Revenue Funds:
Combining Balance Sheet Statement 8 48
Combining Statement of Revenue, Expenditures and Changes in
Fund Balance Statement 9 49
Program Recreation — Statement of Revenue, Expenditures and
Changes in Fund Balance - Budget and Actual Statement 10 50
Debt Service Funds:
Combining Balance Sheet Statement 11 51
Combining Statement of Revenue, Expenditures and Changes
in Fund Balance Statement 12 53
Capital Project Funds:
Combining Balance Sheet Statement 13 55
Combining Statement of Revenue, Expenditures and Changes
in Fund Balance Statement 14 61
Enterprise Funds:
Combining Balance Sheet Statement 15 67
Combining Statement of Revenue, Expenses and Changes in
Retained Earnings Statement 16 68
Combining Statement of Cash Flows Statement 17 69
Agency Funds:
Combining Balance Sheet Statement 18 70
Combining Statement of Changes in Assets and Liabilities Statement 19 71
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CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
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General Fixed Asset Account Group:
— Schedule of General Fixed Assets - By Source Statement 20 72
Schedule of General Fixed Assets - By Function and Activity Statement 21 73
Schedule of Changes in General Fixed Assets - By Function and
Activity Statement 22 74
General Long -Term Debt Account Group:
Schedule of General Long -Term Debt
Supplementary Financial Information
Statement 23 75
Combined Schedule of Indebtedness Exhibit 1 76
— Schedule of Deferred Tax Levies Exhibit 2 78
Debt Service Payments to Maturity - All Bonds Exhibit 3 79
Insurance in Force Exhibit 4 81
— Taxable Valuations, Tax Levies and Tax Rates Exhibit 5 82
III. STATISTICAL SECTION
General Fund:
— Expenditures By Function - Last Ten Fiscal Years Table 1 83
Revenue By Source - Last Ten Fiscal Years Table 2 84
Property Tax Levies and Collections - Last Ten Fiscal Years Table 3 85
Special Assessment Levies and Collections - Last Ten Fiscal Years Table 4 86
bnim
Ratio of Annual Debt Service Expenditures for General Bonded
Debt to Total General Expenditures - Last Ten Fiscal Years Table 5 87
Assessed and Estimated Actual Value of Taxable Property -
Last Ten Fiscal Years Table 6 88
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
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Property Tax Rates - Direct and Overlapping Government -
Last Ten Fiscal Years Table 7 90
Ratio of Net Bonded Debt to Assessed Value and Net Bonded
Debt Per Capita - Last Ten Fiscal Years Table 8 91
Computation of Direct and Overlapping Debt including Debt Ratios Table 9 92
Computation of Legal Debt Margin Table 10 93
Schedule of Revenue Bond Coverage - Water Fund -
Last Nine Fiscal Years Table 11 94
Principal Taxpayers Table 12 95
Property Value, Construction Permits and Bank Deposits -
Last Ten Fiscal Years Table 13 96
Demographic Statistics Table 14 97
Miscellaneous Statistics Table 15 98
I.
INTRODUCTORY
SECTION
Now
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2001
Mayor:
— John Bergeson
WEN
Elected Officials
Term Expires
December 31, 2001
Council Members:
Caroline Dahl December 31, 2001
Jeff Reinert December 31, 2001
Donna Carlson December 31, 2003
Jeff O'Donnell December 31, 2003
Appointed Personnel
City Administrator Linda Waite Smith
Director of Finance Alan Rolek
Director of Public Safety David Pecchia
Director of Community Development Micheal Grochala
Director of Public Service Rick DeGardner
Director of Administration Daniel Tesch
City of Lino Lakes Organizational Chart
Citizens
Honorable Mayor
and
City Council
Commissions
Cable
Parks and Recreation
Economic Development
Planning and Zoning
Fire
Environmental
City Administrator
City Clerk
Professional Consultants
Engineering
Attomey
Fiscal
Public Services
Public Safety
Parks
Public Works
Recreation
Administration
Police
Emergency Management
Inspections
Community Development
Human Resources
Administrative Services
2
Finance
Planning
Economic Development
Engineering
Environmental Services
Accounting
Management Infomration Systems
Utility Billing
May 16, 2002
Honorable Mayor
Members of the City Council
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, 2001. 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.
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 Public Accountants, the State Auditor's Office, the State of Minnesota and the City Charter.
INIEW
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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.
We 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 matters
—' presented. The notes are considered an essential part in providing insight into the information presented.
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.
3
600 Town Center Parkway, Lino Lakes, Minnesota 55014-1182
Phone: 651- 982 -2400 • Fax: 651 -982 -2499 • TDD: 651 - 982 -240
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 & fleet), parks and recreation, conservation of natural resources
(environmental & solid waste abatement), public improvements, providing and maintaining sanitary and storm
sewer, water infrastructure, and two enterprise funds, the water and sewer funds.
ECONOMIC CONDITION AND OUTLOOK
The City of Lino Lakes is a growing community in the southeast corner of the County of Anoka. It covers an
area of 33 square miles and has a population of nearly 17,000. The population has nearly doubled from the 1990
census figure of 8,807. 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 established in 1993 by the city council has begun to have an impact in the
diversity of the City's tax base. Since 1993, the city has added more than $40 million in additional
commercial /industrial market value. The Apollo Business Park on I -35W and the Clearwater Creek Development
Center on I -35E continue to attract industrial development. A new commercial retail center on Lake Drive and
Apollo Drive in the Town Center area has been initiated and is expected to be substantially complete in 2002.
With the many wetlands and regional parks, environmental issues are :important to the city. In 1999, the city
approved its first Preservation Development subdivision, a large step forward in the implementation of the city's
overall environmental inventory and management plan. This plan will preserve the valuable open spaces and
wetlands within the city.
MAJOR INITIATIVES
Commercial development in Lino Lakes has been the focus of a city-initiated development called the Town
Center on the I -35W interchange area. This innovative project incorporates mixed -use development that includes
professional buildings, civic facilities, commercial development and a mix of housing types. The city received a
$220,000 Livable Communities grant in 1998 from the Metropolitan Council to hire Peter Calthorpe Associates,
a planner on the cutting edge of urban and suburban neighborhood development, to refine the city's plan for the
Town Center. An additional grant of $450,000 was awarded in 2000 to begin implementation of the housing
initiatives outlined in the Calthorp plan.
4
The part of the Town Center area located on the northeast quadrant of I -35W and Lake Drive began developing
as a commercial retail center known as the Lino Lakes Marketplace in late 2001. This development includes a
Target Super Store, a Kohl's Department Store and several smaller retail shops. This is expected to be
substantially complete in 2002 and fully completed by 2004. The development has spurred the need to upgrade
Lake Drive from I -35W to 77th Street and to complete Apollo Drive east of Lake Drive, along with the
installation of underground utilities and traffic control systems. The cost of the project will be assessed against
the new development.
The Village, the southeast quadrant of the Town Center, is the site of the newly completed Lino Lakes Civic
Complex. This $6 million facility that houses city hall, police and a Centennial School District program, is a
critical component to the success of a mixed use Town Center. The location of the complex is part of the
economic development effort in providing a strong civic focus within the mixed -use center. The Civic Complex
recently received an award from the League of Minnesota Cities for innovation and excellence in housing,
economic development and community spaces.
The city is considering participating in the construction costs of a YMCA in The Village section of the Town
Center as an alternative to building a City Community Center. The YMCA is anticipating building a new
recreation facility in the near future.
FINANCIAL INFORMATION
Internal Controls
Management of the City is responsible for establishing and maintaining an internal control structure in the
accounting system designed that the assets of the City are protected from loss, theft, misuse and to ensure that
fair, reliable and accurate accounting data is compiled to allow for the preparation of financial statements in
conformity with U.S. generally accepted accounting principles. The internal control structure is designed to
provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable
assurance recognizes that: 1) the cost of a control should not exceed the benefits; 2) the valuation of costs and
benefits requires estimates and judgements by management. As part of the City's annual audit, the internal
control system is evaluated to the extent necessary for audit purposes and changes are recommended when
needed.
Budgeting Controls
The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the City Council. Activities of the General Fund and the Program Recreation
Special Revenue Fund are included in annual appropriated budgets. The legal level of budgetary control is
established at the department level, but management control is exercised at the line item level.
As demonstrated by the statements and schedules included in the financial section of this report, the City
continues to meet its responsibility for sound financial management.
General Fund
The General Fund accounts for all revenues and expenditures necessary to provide basic governmental operations
of the City.
5
General Fund revenues totaled $6,193,834 in 2001 compared to $5,613,395 in 2000. The breakdown of revenues
is shown in the following table:
2001 2000 $ Change % Change
General property taxes $4,125,264 $3,306,057 $819,207 24.78%
Licenses and permits 1,016,456 884,746 131,710 14.89%
Intergovernmental revenues 409,607 702,606 (292,999) (41.70 %)
Special Assessments 4,835 5,405 (570) (10.55 %)
Charges for services 278,863 272,145 6,718 2.47%
Fines and forfeits 101,559 124,458 (22,899) (18.40 %)
Interest on Investments 95,004 140,592 (45,588) (32.43 %)
Miscellaneous 162,246 177,386 (15,140) (8.54 %)
Total $6,193,834 $5,613,395 $580,439 10.34%
General property taxes increased in 2001 reflecting the growth in the tax base of the City and the additional
service needs arising from that growth. Licenses and permits increased due to the continued surplus of building
permits issued for new housing and commercial /industrial units in the City. Reallocation of state Homestead and
Agriculture Credit Aid (HACA) to the Debt Service Funds is reflected directly in the decrease in
intergovernmental revenues in 2001. Service charges were essentially the same as in 2000, with slight decreases
in general government and planning and engineering charges, and slight increases in administrative and public
safety charges. Fines and forfeitures decreased due to a reduced emphasis on traffic enforcement employed
throughout the year. Decreases in refunds and reimbursements and cable TV franchise fees resulted in a
reduction in this miscellaneous revenue realized in 2001. Investment earnings were lower in 2001 due to a
changing interest rate environment as a result of a sagging economy.
General fund expenditures totaled $5,808,265 in 2001 compared to $5,513,148 in 2000. The breakdown of
expenditures is shown in the following table:
2001 2000 $ Change % Change
General Government $1,871,615 $1,770,528 $101,087 5.71%
Public Safety 2,246,146 2,158,346 87,800 4.07%
Public Works 868,289 786,420 81,869 10.41%
Parks and Recreation 663,360 655,863 7,497 1.14%
Conservation of Natural Resources 158,855 141,991 16,864 11.88%
Total $5,808,265 $5,513,148 $295,117 5.35%
Personnel costs drove the majority of the increase in expenditures across all categories in 2001. This is
especially true in the General Government area, where increased personnel costs were partially offset by lower
contractual costs. Public Safety increased mainly due to personnel costs, capital outlay expenditures and
increased fire contract costs. Public Works costs were higher in 2001 due to labor costs, supplies costs for street
repair, and increased cost of motor fuels. The increase in Parks and recreation expenses was primarily due to
labor costs. Higher contractual expenditures for tree maintenance and environmental purposes were the principal
reasons for the increase in the Conservation of Natural Resources area in 2001.
6
The fund balance of the General fund continues to grow as shown below:
Expenditure Fund Balance Percent
Budget Beginning of Year of Budget
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%
1997 4,400,087 2,723,025 61.89%
1998 5,524,646 3,057,912 55.35%
1999 5,252,474 3,411,332 64.95%
— 2000 5,601,671 3,434,474 61.31%
2001 6,056,426 3,541,596 58.48%
The fund balance for the year increased $383,073 for a total ending fund balance of $3,924,669.
Special Revenue Funds
The Economic Development Authority Fund accounts for personal expenses of the City Council when acting as
the Economic Development Authority.
The Community Development Block Grant Fund accounts for expenditures associated with funds allocated
through Anoka County from the Federal Government to fund allowable projects.
The Program Recreation Fund accounts for the activities of the Recreation Department for self - supporting
programs.
Debt Service Funds
Improvement Bonds Funds account for the accumulation of resources for debt service payments made on general
obligation debt issued for local improvement projects. The Improvement Bonds of 1992A issue has been
completely retired; therefore, this debt service fund was closed to the Improvement Refunding Bonds of 1999A
Fund at the end of the year via a residual equity transfer.
The Certificates of Indebtedness Fund accounts for debt service payments made on debt issued to finance capital
purchases. These certificates are financed internally.
The Public Project Revenue Bonds Fund and Public Project Refunding Bond Fund were established to account
for debt service payments related to the construction of the City's fire hall and civic complex. The Public Project
Revenue Bond issue has been completely retired; therefore, this debt service fund was closed to the Public
Project Refunding Bond Fund at the end of the year via a residual equity transfer.
The Lease Revenue Bond Fund was established to account for debt service payments related to the construction
of the City's Civic Complex.
7
Capital Project Funds
The Closed Bond Fund was established to account for all excess bond receipts.
The Dedicated Parks Fund accounts for revenues and expenditures for the acquisition and construction of park
proj ects.
The Area and Unit Charges Fund accounts for water and sewer area assessments to be used for the construction
of City utility infrastructure.
The Surface Water Management was established to help fund the costs associated with surface water issues and
planning.
The Town Center /Civic Center Project Funds were established to account for costs associated with the creation
of the "Village ", including: infrastructure, civic buildings and development of the property for commercial use.
Tax Increment Funds were established to account for projects financed with tax increments.
Enterprise Funds
The Water Fund accounts for the operations of the municipal water system. The following table illustrates the
operations:
2001 2000 $ Change % Change
Operating Revenues $865,943 $718,822 $147,121 20.47%
Operating Expenses 508,649 495,183 13,466 2.72%
(Excluding Depreciation)
Operating Income (Loss)
$357,294 $223,639 $133,655 59.76%
New water rates were implemented in April. The rates were reconfigured into a tiered structured to provide an
incentive to conserve water. The rates were also set to capture system depreciation for future system
replacement. In addition , water revenues increased due to increased number of users on the system, resulting in
greater consumption. Continuation of a program to implement a telephone meter reading system resulted in
increases in personnel, supply and contractual costs over the previous year.
The Sewer Fund accounts for the operations of the municipal sanitary sewer system. The following table
illustrates the operations:
Operating Revenues
Operating Expenses
(Excluding Deprecation)
Operating Income (Loss)
2001 2000 S Change % Change
$1,011,983 $875,850 $136,133 15.54%
575,379 641,729 (66,350) (10.34 %)
$436,604 $234,121 $202,483 86.49%
8
As with the Water Fund, rates were adjusted in April, with system depreciation built into the rate for future
system replacement. Additional users also contributed to increased revenues for the year. Personnel, contractual
service costs, and Metropolitan Council Environmental Services charges for sewage treatment (due to lower
ANEW
volume) were the primary reasons for the decrease in expenses from the previous year.
NNW
AGENCY FUNDS
The Contractors Deposits Fund accounts for the pass - through costs of developer financed projects within the
City.
The Pending Assessments Fund 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 2002.
The 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 2001 was
$611,806 compared to $1,000,915 in 2000. The decrease in interest income resulted from changing market
conditions in 2001. Interest rates dropped substantially in response to a weakened economy leading to reduced
returns on investment.
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.
WIMP
CASH MANAGEMENT
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.
Cash temporarily idle during the year was invested in certificates of deposit, commercial paper, and obligations
of the U.S. Treasury. The City's investment policy's primary objective is safety of principal. Therefore, all
deposits were either insured by Federal depository insurance or were collateralized as required by State Statute.
The City Council reviews the investment policy annually and last amended it in 1998.
DEBT ADMINISTRATION
At year -end, the City had a number of debt issues outstanding. These issues included $6,686,430 of general
obligation bonds and equipment certificates, $10,195,000 of general obligation improvement bonds with special
assessments pledged and $3,465,000 of revenue bonds. The City also had contracts for deed in the amount of
$959,352. During 2001, the City issued $332,030 of equipment certificates internally, the proceeds of which
were used to purchase equipment.
9
RISK MANAGEMENT
The City's general property and liability coverage is provided through the League of Minnesota Cities Trust
(LMCIT) and worker's compensation is provided through State Fund Mutual.
At the beginning of the insurance year, the city deposits with State Fund a premium determined by calculating
estimated payroll and applying experience modification ratios. An audit is performed at the end of the insurance
year, which may produce a refund or an adjustment due. State Funds 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. The firm Larson, Allen, Weishair and Co.,
LLP was retained by the City Council to perform the audit. U.S. generally accepted auditing standards and the
standards set forth in the Comptroller General of the United States' Government Auditing Standards, were used
by the auditors in conducting the engagement. In addition, the requirements of the Federal Single Audit Act of
1984 and the related U.S. Office of Management and Budget's Circular A -133 have been met by the City. The
auditor's report on the general purpose financial statements and combining and individual fund statements and
schedules is included in the financial section of the report. The auditor's reports on internal controls and
compliance with applicable laws and regulations can be found in a separately issued legal compliance report.
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING
The Government Finance Officers Association of the United States and Canada (GFOA) awards the Certificate
of Achievement for excellence in financial reporting to cities that meet certain criteria. 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 this award for the year ended
December 31, 2000. The City is submitting the 2001 report to GFOA for consideration of the Certificate of
Achievement for Excellence in Financial Reporting. We believe our current report continues to conform to the
program requirements.
ACKNOWLEDGMENTS
The preparation of this report could not have been accomplished without the dedicated services of the Finance
Department, auditors and other city staff.
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,
an J. Rola/
D. - tor o finance
10
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, 2000
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.
11
Executive Director
II.
FINANCIAL
SECTION
IMm
Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
LarsnAllen,M
W e i s h a i r & Co., L L P
ACHIEVE THE DESIRED EFFECT'
Business Consultants o Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
We have audited the accompanying general purpose financial statements of the City of Lino Lakes, Minnesota as
of and for the year ended December 31, 2001 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 U.S. generally accepted auditing standards and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
- about whether the 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, 2001, and the results of its
operations and cash flows of its proprietary fund types for the year then ended in conformity with U.S. generally
accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated March 28, 2002 on our
consideration of the City of Lino Lakes Minnesota's internal control over financial reporting and our tests of its
compliance with certain laws, regulations, contracts, and grants.
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, schedules and tables 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 the statistical
tables on which we express no opinion, has been subjected to the auditing procedures applied in our audit of the
general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the
general purpose financial statements taken as a whole.
NOON
Austin, Minnesota
March 28, 2002
12
diz tic ad/`.v l/ 24,
LARSON, ALLEN, WEISHAIR & CO., LLP
GENERAL PURPOSE FINANCIAL STATEMENTS
CITY OF LINO LAKES, MINNESOTA
COMBINED BALANCE SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 2001
Governmental Fund Types
Special Debt Capital
Assets General Revenue Service Project
Cash and investments $ 4,005,214 $ 46,449 $ 1,232,908 $ 6,183,430
Cash and investments with escrow agent _ _ 507,959
Accrued interest receivable - 645 -
Accounts receivable 87,151 56,250 18,921
Deposits receivable - - -
Due from other governmental units 106,699 - 1,032,516
Interfund receivable - 6,072,346
Taxes receivable:
Delinquent 48,242 7,814 -
Due from County 86,290 13,020 19,188
Delinquent tax increment - - 48,963
Special assessments receivable:
Delinquent 8,439 28,350
Deferred - 1,127,822 2,025,930
Due from County - - 2,065 19,703
Prepaid items 105,969 1,551 -
Advances to Other Funds - 853,917
Land held for resale 989,506
Fixed assets (net of accumulated depreciation) -
Amount available in Debt Service Fund
Amount to be provided for retirement of GLTD
Total assets $ 4,439,565 $ 48,000 $ 2,956,922 $ 17,292,770
Liabilities, equity and other credits
Liabilities:
Interfund payable $
Accounts payable 303,835
Salaries payable 154,520
Retainage payable
Accrued interest payable
Deposits payable
Due to other governmental units 7,741
Advances from Other Funds -
Deferred revenue 48,800
Bonds payable -
Contract for deed payable
Compensated absences payable
Total liabilities 514,896
$ 41,753 $ 5,914,540
4,771 44,645 264,572
483
38,251
31,961
853,917
1,144,075 2,103,244
5,254 1,230,473 9,206,485
Equity and other credits:
Contributed capital -
Invested in general fixed assets
Retained earnings:
Reserved -
Unreserved
Fund balance (deficit):
Reserved 105,969 1,551 1,768,402 1,843,423
Unreserved:
Designated 3,818,700 41,195 10,146,843
Undesignated - - (41,953) (3,903,981)
Total equity and other credits 3,924,669 42,746 1,726,449 8,086,285
Total liabilities, equity and other credits $ 4,439,565 $ 48,000 $ 2,956,922 $ 17,292,770
The accompanying notes are an integral part of these financial statements.
13
Nmim
Statement 1
Proprietary Fiduciary
Fund Type Fund Type
Enterprise Agency
Account Groups
General General Long -
Fixed Assets Term Debt
$ 1,896,445 $ 557,031 $
- 116,053
277,663
- 10,520
296,279
9,676
26,994,325
$ 29,474,388
13,113,912
$ 683,604 $ 13,113,912
$ - $ 116,053 $
- 41,699 133,495
9,788 -
74,475 -
- 434,056
1,744 -
3,465,000
29,010
3,621,716 683,604
23,480,325 -
- 13,113,912
474,423
1,897,924
25,852,672
$ 29,474,388
$ 683,604
13,113,912
$ 13,113,912
$
Totals
(Memorandum Only)
2001 2000
$ 13,921,477 $ 12,773,242
507,959 2,834,382
116,698 173,011
439,985 300,137
10,520 10,520
1,139,215 358,827
6,072,346 6,263,850
56,056 41,573
118,498 187,935
48,963 8,858
36,789 7,777
3,153,752 3,534,531
318,047 11,386
117,196 112,740
853,917 582,916
989,506 989,506
40,108,237 39,511,135
1,726,449 1,726,449 4,072,885
16,459,177 16,459,177 17,537,953
$ 18,185,626 $ 86,194,787 $ 89,313,164
$
$ 6,072,346 $ 6,263,850
793,017 822,851
164,791 145,826
38,251 10,235
74,475 97,276
434,056 481,586
41,446 6,220
853,917 582,916
3,296,119 3,300,435
16,881,430 20,346,430 24,416,450
959,352 959,352 1,209,352
344,844 373,854 354,874
18,185,626 33,448,054 37,691,871
$ 18,185,626
14
23,480,325 23,117,561
13,113, 912 12,780,630
474,423 -
1,897,924 1,495,340
3,719,345 5,779,944
14,006,738 13,549,316
(3,945,934) (5,101,498)
52,746,733 51,621,293
$ 86,194,787 $ 89,313,164
CITY OF LINO LAKES, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES
For the Year Ended December 31, 2001
Statement 2
Special Capital
Revenue: General Revenue Project
General property taxes $ 4,125,264 $ - $ -
Tax increments 1,069,542
Licenses and permits 1,016,456 -
Intergovernmental 409,607 25 332,369 1,359,952
Special assessments 4,835 - 547,046 1,231,356
Charges for services 278,863 238,983 166,418
Fines and forfeits 101,559 -
Investment earnings 95,004 2,499 56,694 417,051
Refunds and reimbursements 46,677 - 77,929
Miscellaneous 115,569 112,500 346,345
Total revenue 6,193,834 241,507 1,710,152 4,668,593
Expenditures:
Current:
General government 1,854,919 434 797,409
Public safety 2,212,932 - -
Public works 868,289 - 266,585
Parks and recreation 663,360 251,072
Conservation of natural resources 139,599
Capital outlay:
General government 16,696 680
Public safety 33,214 - 176,741
Public works - 540,762
Parks and recreation - 204,990
Conservation of natural resources 19,256 -
Debt service:
Principal 1,847,050 250,000
Interest and fiscal charges 939,281 21,000
Construction/acquisition - 501,810
Total expenditures 5,808,265 251,506 2,786,331 2,759,977
Revenue over (under) expenditures
Other financing sources (uses):
Operating transfer in
Operating transfer out
Bond proceeds
Payment to refunding bond escrow
Total other financing sources (uses)
Net increase (decrease) in fund balance
385,569 (9,999)
(2,496)
(2,496)
Debt
Service
$ 661,543
(1,076,179)
Totals
(Memorandum Only)
2000
$ 4,181,304
1,032,592
884,746
802,456
3,106,359
618,295
124,458
930,177
119,976
565,645
12,366,008
2001
$ 4,786,807
1,069,542
1,016,456
2,101,953
1,783,237
684,264
101,559
571,248
124,606
574,414
12,814,086
2,652,762
2,212,932
1,134,874
914,432
139,599
17,376
209,955
540,762
204,990
19,256
2,097,050
960,281
501,810
11,606,079
1,908,616 1,208,007
3,145,791
2,126,696
838,789
828,852
106,543
96,317
186,786
155,651
143,143
35,448
1,448,570
1,041,882
725,663
10,880,131
1,485,877
2,496 409,743 412,239 526,843
- (717,393) (719,889) (847,352)
332,030 332,030 325,450
(1,680,000) - (1,680,000) -
2,496 (1,270,257) (385,363) (1,655,620) 4,941
(447,613) 1,490,818
383,073 (7,503) (2,346,436) 1,523,253
Fund balance
Beginning of year, as previously stated 3,541,596 50,249
Prior period adjustment
4,072,885 6,563,032 14,227,762 12,616,944
120,000
Beginning of year, as restated 3,541,596 50,249 4,072,885
Residual equity transfer in - 671,695
Residual equity transfer out (671,695)
6,563,032 14,227,762 12,736,944
671,695 440,942
(671,695) (440,942)
Fund balance - December 31
$ 3,924,669 $ 42,746
The accompanying notes are an integral part of these financial statements.
$ 1,726,449 $8,086,285 $ 13,780,149 $ 14,227,762
15
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CITY OF LINO LAKES, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL AND SPECIAL REVENUE FUND TYPES
For the Year Ended December 31, 2001
Statement 3
Revenue:
General property taxes
Licenses and permits
Intergovernmental
Special Assessments
Charges for services
Fines and forfeits
Investment earnings
Refunds and reimbursements
Miscellaneous
Total revenue
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Conservation of natural resources
Capital outlay:
General government
Public safety
Public works
Parks and recreation
Conservation of natural resources
Total expenditures
Revenue over (under) expenditures
Other financing sources (uses):
Operating transfers from other funds
Operating transfers to other funds
Net increase (decrease) in fund balance
Fund balance
Beginning balance
Fund balance - December 31
General
Budget
$ 4,152,048
723,818
372,700
244,500
100,000
90,000
45,000
103,560
5,831,626
Actual
$ 4,125,264
1,016,456
409,607
4,835
278,863
101,559
95,004
46,677
115,569
6,193,834
Over
(Under)
Budget
Special Revenue Fund -
Program Recreation
Over
(Under)
Budget Actual Budget
$ (26,784) $
292,638
36,907
4,835
34,363
1,559
5,004
1,677
12,009
362,208
2,062,015 1,854,919 (207,096)
2,262,443 2,212,932 (49,511)
843,151 868,289 25,138
686,930 663,360 (23,570)
117,787 139,599 21,812
22,000 16,696 (5,304)
32,100 33,214 1,114
30,000 19,256 (10,744)
6,056,426 5,808,265 (248,161)
(224,800) 385,569 610,369
$ (224,800)
(2,496) (2,496)
199,485 238,983 39,498
2,499 2,499
199,485 241,482 41,997
188,705 251,072
2,000
62,367
(2,000)
190,705 251,072 60,367
8,780 (9,590) (18,370)
383,073 $ 607,873 $ 8,780
3,541,596
$ 3,924,669
The accompanying notes are an integral part of these financial statements.
(9,590) $ (18,370)
52,336
$ 42,746
CITY OF LINO LAKES, MINNESOTA
COMBINED STAIEMENT OF REVENUE, EXPENSES AND
AND CHANGES IN RETAINED EARNING - ALL PROPRIETARY FUND TYPES
For The Year Ended December 31, 2001
Statement 4
Enterprise Funds
2001 2000
Operating revenue:
Water sales $ 860,896 $ 717,617
Sewer charges 1,011,940 875,850
Other operating revenue 5,090 1,205
Total operating revenue 1,877,926 1,594,672
Operating expenses:
Personal services 258,237 262,284
Materials and supplies 257,796 257,187
Contractual services 97,140 124,547
MCES sewer charges 370,968 396,800
Depreciation:
Purchased assets 103,092 104,578
Contributed assets 529,471 504,805
Utilities 78,020 86,257
Other 21,867 9,837
Total operating expenses 1,716,591 1,746,295
Net income (loss) from operations
161,335 (151,623)
Other income (expense):
Investment earnings 40,558 70,738
Special assessments 23,243 35,510
Bond interest (183,750) (234,812)
Paying agent fees (1,500) (2,800)
Total other income (expense) (121,449) (131,364)
Net income (loss) before operating transfers 39,886 (282,987)
Operating transfers:
Operating transfer from Capital Project Fund 307,650 320,509
Net income (loss) 347,536 37,522
Credit arising from transfer of depreciation
to contributions from property owners 529,471 504,805
Retained earnings - January 1 1,495,340 953,013
Retained earnings - December 31 $ 2,372,347 $ 1,495,340
The accompanying notes are an integral part of these financial statements.
17
CITY OF LINO LAKES, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
For the Year Ended December 31, 2001
Statement 5
Enterprise Funds
2001 2000
Cash flows from operating activities:
Operating income (loss) $ 161,335 $ (151,623)
Adjustments to reconcile operating income to
net cash flows from operating activities:
Depreciation 632,563 609,383
Change in assets and liabilities:
Decrease (increase) in receivables (70,771) 6,341
Decrease (increase) in prepaid items (3,005) (1,921)
Increase (decrease) in payables (52,717) 61,692
Net cash flows from operating activities 667,405 523,872
Cash flows from noncapital financing activities:
Operating transfer from Capital Project Funds
Cash flows from capital and related financing activities:
Principal paid on revenue bonds
Investment with escrow agent
Collection of special assessments
Interest and paying agent fees on revenue bonds
Acquisition of fixed assets
Net cash flows from capital and related financing activities
307,650 320,509
(875,000)
650,367
26,300
(208,051)
(4,148)
(410,532)
(210,000)
2,528
35,510
(237,612)
(31,001)
(440,575)
Cash flows from investing activities:
Investment earnings 53,292 70,738
Net increase (decrease) in cash and cash equivalents 617,815 474,544
Cash and cash equivalents - January 1 1,278,630 804,086
- Cash and cash equivalents - December 31 $ 1,896,445 $ 1,278,630
Noncash investing, capital and financing activities:
- Water and Sewer lines in the amount of $882,235 and $1,233,267 were contributed to the Water and Sewer Fund
in 2001 and 2000 respectively.
The accompanying notes are an integral part of these financial statements.
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
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 U.S. generally
accepted accounting principles as applied to governmental units by the Governmental Accounting Standards
Board (GASB). The following is a summary of the significant accounting policies:
A. FINANCIAL REPORTING ENTITY
As required by U.S. generally accepted accounting principles, the financial statements of the reporting
entity include those of the City of Lino Lakes and its component units. A component unit is a legally
separate entity for which the primary government is financially accountable, or for which the exclusion
of the component unit would render the fmancial statements of the primary government misleading.
The criteria used to determine if the primary government is financially accountable for a component
include whether or not the primary government appoints the voting majority of the potential component
unit's board, is able to impose its will on the potential component unit, is in a relationship of financial
benefit or burden with the potential component unit, or is fiscally depended upon by the potential
component unit.
COMPONENT UNITS
In conformity with U.S. generally accepted accounting principles, the financial statements of
component units have been included in the financial reporting entity either as blended component units
or as discretely presented component units.
Blended Component Units.
The Economic Development Authority (EDA) of Lino Lakes is an entity legally separate from the City.
However, for financial reporting purposes, the EDA is reported as if it were part of the City's
operations because the members of the City Council serve as commission members. The EDA does not
issue separate financial statements.
The Housing and Redevelopment Authority (HRA) of Lino Lakes is an entity legally separate from the
City. However, for financial reporting purposes, the HRA is reported as if it were part of the City's
operations because the members of the City Council serve as commission members. The HRA has not
yet incurred any financial activity.
B. 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.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The following types of funds and account groups are employed by the City:
GOVERNMENTAL FUNDS
General Fund - to account for all financial resources except those required to be accounted for
in another fund.
Special Revenue Funds - to account for the proceeds of specific revenue sources that are legally
restricted to expenditures for specified purposes.
Debt Service Funds - to account for the accumulation of resources for, and the payment of,
general long -term debt principal, interest, and related costs.
Capital Project Funds - to account for financial resources to be used for the acquisition or
construction of major facilities other than those financed by Proprietary Funds.
PROPRIETARY FUNDS
Enterprise Funds - to account for operations: (a) that are financed and operated in a manner
similar to private business enterprises - where the intent of the governing body is that the costs
(expenses, including depreciation) of providing goods or services to the general public on a
continuing basis be financed or recovered primarily through user charges; or, (b) where the
governing body has decided that periodic determination of revenues earned, expenses incurred,
and/or net income is appropriate for capital maintenance, public policy, management control,
accountability, or other purposes.
FIDUCIARY FUNDS
Trust and Agency Funds - to account for assets held by a governmental unit in a trustee capacity
or as an agent for individuals, private organizations, other governmental units, and/or other
funds. These include (a) expendable trust funds, (b) nonexpendable trust funds, (c) pension
trust funds, and (d) agency funds.
ACCOUNT GROUPS
The governmental fund types are designed to account for the financial flow of a particular fund;
therefore, they generally include only current assets and current liabilities on their balance
sheets. The City maintains two account groups to account for noncurrent assets and long -term
liabilities as follows:
General Fixed Assets - The City maintains a separate account group which contains the fixed
assets used in the governmental fund type operations. They are assets of the City as a whole
and not of individual funds.
General Long -Term Debt - This account group contains the long -term obligations of the City
including general obligation bonds, certificates of indebtedness, contracts payable and
compensated absences payable. These long -term liabilities are expected to be financed by the
governmental funds.
NIMMI
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. BASIS OF ACCOUNTING
The accounting and reporting treatment applied to a fund is determined by its measurement focus. All
governmental funds are accounted for on a current financial resources measurement focus. This means
that only current assets and current liabilities are generally included on their balance sheets.
Governmental fund operating statements present increases (revenues and other financing sources) and
decreases (expenditures and other financing uses) in net current assets.
All Proprietary Funds are accounted for on a flow of economic resources measurement focus. This
means that all assets and all liabilities (whether current or noncurrent) associated with this activity are
included on their balance sheets. Their reported fund equity (net total assets) is segregated into
contributed capital and retained earnings components. Proprietary fund type operating statements
present increases (revenues) and decreases (expenses) in net total assets.
The modified accrual basis of accounting is followed by the City for its Governmental Funds and
Fiduciary- Agency 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 $3,296,119, which consists of the following:
Oak Wilt Suppression $ 557
Property taxes receivable 105,021
Special assessments receivable 3,190,541
Total $ 3,296,119
21
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. BUDGETS
Budgets are adopted on a basis consistent with U.S. generally accepted accounting principles. Annual
appropriated budgets are adopted for the General Fund and the Program Recreation Special Revenue
Fund.
Budgeted amounts are reported as originally adopted, or as amended by the City Council. Individual
amendments were not material in relation to the original appropriations, which were adjusted.
Budgeted expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not
employed by the City because it is not presently considered necessary to assure effective budgetary
control or to facilitate effective cash management.
Reconciliation of Budgetary Basis to GAAP Basis
Governmental funds presented on Statement 3 are the General Fund and the Program Recreation
Special Revenue Fund. The following is a reconciliation of fund balances on a budgetary basis as
presented on Statement 3, to the GAAP basis as presented on Statement 2:
Governmental Fund:
Fund Balance — Budgetary Basis
Fund Balances — Non - Budgeted Funds
Special
Revenue
Funds
$ 42,746
Fund Balances — GAAP Basis $ 42,746
E. LEGAL COMPLIANCE - BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Administrator submits to the City Council a proposed operating budget (including
the General Fund and Program Recreation Special Revenue Fund) for the fiscal year
commencing the following January 1. The operating budget includes proposed expenditures
and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can
be expended by each department based upon detailed budget estimates for individual
expenditure accounts.
4. The City Administrator is authorized to transfer appropriations within any department budget.
Additional interdepartmental or interfund appropriations and deletions are or may be
authorized by the City Council with fund (contingency) reserves or additional revenues.
5. Formal budgetary integration is employed as a management control device during the year for
the General Fund.
22
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies
for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to
determine and calculate user charges. These debt service and budget amounts represent
general obligation bond indenture provisions and net income for operation and capital
maintenance and are not reflected in the financial statements.
7. A capital improvement program is reviewed periodically by the City Council for the Capital
Project Funds. However, appropriations for major projects are not adopted until the actual bid
award of the improvement. The appropriations are not reflected in the financial statements.
8. Expenditures may not legally exceed budgeted appropriations at the total fund level.
Monitoring of budgets is maintained at the expenditure category level (i.e., personal services,
supplies; other services and charges; capital outlay) within each activity.
9. The City Council may authorize transfer of budgeted amounts between City funds.
F. CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in
investments authorized by Minnesota Statutes. Earnings from investments are allocated to individual
funds on the basis of the fund's equity in the cash and investment pool.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund shown as interfund receivables in the advancing fund, and an interfund
payable in the fund with the deficit, until adequate resources are received.
Investments are stated at fair value as of the balance sheet date. 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 AID (HACA)
Property taxes on homestead property (as defined by State Statutes) are partially reduced by HACA.
This credit is paid to the City by the State in lieu of taxes levied against homestead property. The State
remits this credit through installments each year. The credit is recognized as revenue by the City at the
time of collection.
23
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December
(levy /assessment date) of each year for collection in the following year. The County is responsible for
billing and collecting all property taxes for itself, the City, the local School District and other taxing
authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that
date. Real property taxes are payable (by property owners) on May 15 and October 15 of each
calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each
year. These taxes are collected by the County and remitted to the City on or before July 15 and
December 15 of the same year. Delinquent collections for November and December are received the
following January. The City has no ability to enforce payment of property taxes by property owners.
The County possesses this authority.
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/industrial property
valuation growth since 1971. Property taxes paid to the City through this formula for 2001 and 2000
totaled $681,264 and $572,406, respectively. Receipt of property taxes from this "fiscal disparities
pool" does not increase or decrease total tax revenue.
I. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of
special assessment improvement projects in accordance with State Statutes. These assessments are
collectible by the City over a term of years usually consistent with the term of the related bond issue.
Collection of annual installments (including interest) is handled by the County Auditor in the same
manner as property taxes. Property owners are allowed to (and often do) prepay future installments
without interest or prepayment penalties.
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.
24
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
J. INVENTORIES
The original cost of materials and supplies has been recorded as expenditures /expenses at the time of
purchase of both the Governmental and Proprietary Funds. These funds do not maintain material
amounts of materials and supplies.
K. INTERFUND RECEIVABLES/PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. These receivables are classified as interfund receivables and payables
on the balance sheet. The non - current portion of interfund loans are reported as "advances to /from
other funds." Advances between funds are offset by a fund balance reserve account in applicable
governmental funds to indicate they are not available for appropriation and are not expendable
available financial resources.
L. LAND HELD FOR RESALE
These assets are recorded in the governmental fund, which purchased them at the lower of cost or
market.
M. FIXED ASSETS
GENERAL FIXED ASSETS
General fixed assets are recorded as expenditures of the Governmental Funds at the time of purchase.
Such assets are capitalized at historical cost or estimated historical cost in the General Fixed Asset
Account Group. Public Domain ( "infrastructure ") general fixed assets consisting of roads, bridges,
curbs, gutters, streets, sidewalks, drainage systems and lighting systems are excluded from general
fixed assets as these assets are immovable and of value only to the City. Gifts or contributions are
recorded in general fixed assets at fair market value at the time received. No depreciation has been
provided on general fixed assets.
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 -50 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.
25
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Depreciation on these assets is shown m the operating statements; however, the depreciation is
eventually transferred against the contribution account rather than retained earnings in accordance with
U.S. generally accepted accounting principles. Consequently, the contribution account reflects the net
book value of contributed assets rather than the original cost of such assets.
N. 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 are
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 addition, an
amount is recorded for those individuals not eligible for retirement at December 31, 2001, but for
whom a payout of the amount earned to that date is expected. In accordance with the provisions of
Statement of Government Accounting Standards No. 16, Accounting for Compensated Absences, a
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 m accordance with the terms of their employment
contracts. The remaining sick leave amounts are not recorded as liabilities because payment is not
probable.
O. 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 m the General Long -Term Debt Account Group. Long -term liabilities expected
to be financed from proprietary fund operations are accounted for in those funds.
P. 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.
Q. 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 m 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. During 2001, the City made residual equity transfers to close two debt service funds. All
other interfund transfers are reported as operating transfers.
26
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
R. 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 U.S.
generally accepted accounting principles. Neither are such data comparable to a consolidation.
Interfund eliminations have not been made in the aggregation of this data.
Note 2 DEPOSITS AND INVESTMENTS
DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks
authorized by the City Council, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral.
The market value of collateral pledged must equal 110% of the deposits not covered by insurance or
bonds.
Authorized collateral includes the legal investments described below 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 $148,320 and the bank balance was
$470,468. The entire bank balance was covered by Federal depository insurance or by collateral held
by the City's agent in the City's name.
27
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
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 m 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.
Cash and Investment balances as of December 31, 2001 are as follows:
Custodial Credit Risk Category
Security Type 1 2 3 Fair Value
U.S. Government & Agency Securities $ 3,018,872 $ $ $ 3,018,872
Commercial Paper 2,570,037 2,570,037
Municipal Bonds 651,430 651,430
Negotiable Certificates of Deposit 5,858,359 5,858,359
Totals $ 12,098,698 $ $ 12,098,698
Investment not subject to categorization:
Mutual Funds 1,176,984
Money Market Funds 1,004,614
Total Investments 14,280,296
Deposits 148,320
Cash on Hand 820
Total Deposits, Investments and cash on hand $ 14,429,436
A reconciliation of cash and investment as shown on the combined balance sheet is as follows:
Cash and investments
Cash and investments with escrow agent
28
13,921,477
507,959
14,429,436
MEP
imm
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
• 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 1999C and the Lease Revenue Bonds of 1998 which are restricted for the payment of debt associated
with the City's fire station and the payment for construction and capitalized interest costs of the Civic
Complex, respectively.
Note 3 FIXED ASSETS
A summary of changes in general fixed assets is as follows:
Land and Improvements
Buildings
Equipment and Furniture
Other
Vehicles
Machinery/Shop Equipment
Balance
1 /1 /01
$ 3,040,837
6,423,900
941,238
718,370
1,080,445
575,840
Additions
Balance
Deletions 12/31/01
$ 65,252 $
22,505
107,478
2,509
251,970
3,296
$ 3,106,089
6,446,405
2,527 1,046,189
720,879
115,201 1,217,214
2,000 577,136
$ 12,780,630 $ 453,010 $
A summary of Proprietary Fund fixed assets at December 31, 2001 is as follows:
Building and Structures
Machinery and Equipment
Water and Sewer Lines
Total
Less: Accumulated Depreciation
Net Fixed Assets
Water
119,728 $ 13,113,912
Sewer Total
$ 48,690 $
122,020
14,546,924
14,717,634
(1,954,956)
165,530
16,420,864
16,586,394
(2,354,747)
$ 12,762,678 $ 14,231,647
29
$ 48,690
287,550
30,967,788
31,304,028
(4,309,703)
$ 26,994,325
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 4 CITY INDEBTEDNESS
The following is a schedule of changes in City indebtedness for the year ended December 31, 2001:
Balance Balance
1 /1 /01 Issues Payments 12/31/01
General Long Term Debt Account Group:
Bonded debt:
General obligation $ 6,911,450 $ 332,030 $ 557,050 $ 6,686,430
Special assessment 13,165,000 - 2,970,000 10,195,000
Contracts for deed payable 1,209,352 - 250,000 959,352
Compensated absences payable — net 325,036 19,808 344,844
Total general long term debt 21,610,838 351,838 3,777,050 18,185,626
Proprietary Fund:
Revenue bond 4,340,000 875,000
Compensated absences -net 29,838 828
Total $ 25,980,676 $ 351,838 $ 4,652,878
3,465,000
29,010
21,679,636
All long -term bonded indebtedness outstanding at December 31, 2001 is backed by the full faith and credit of
the City, including special assessment bond issues. Delinquent special assessments receivable at December 31,
2001 totaled $36,789.
The annual requirement to amortize all debt outstanding at December 31, 2001 including interest payments of
$6,762,713 is as follows:
General Obligation Bonds $
Special Assessment Bonds
Revenue Bonds
2002
934,905 $
1,756,950
418,564
2003
2004
797,906 $
1,531,236
412,189
677,009 $
1,493,400
415,091
2005
557,599 $
1,454,118
416,990
2006
and on
6,816,735 $
6,504,896
2,921,555
Total $ 3,110,419 $ 2,741,331 $ 2,585,500 $ 2,428,707 $ 16,243,186 $
Total
9,784,154
12,740,600
4,584,389
27,109,143
It is not practicable to determine the specific year for payment of compensated absences payable. The contracts
for deed obligations do not include regular and scheduled payments (payments occur as land is sold) and have
been excluded from the above schedule of annual requirements to amortize debt.
30
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 4 CITY INDEBTEDNESS (CONTINUED)
City indebtedness at December 31, 2001 is composed of the following:
Final
Issue Maturity Interest Original
Date Date Rate Issue
Payable
12/31/2001
_. General Obligation Bonds:
1999 Equipment Certificates 2/1/1999 12/31/2002 6.00% 307,570 102,500
2000 Equipment Certificates 2/1/2000 12/31/2003 6.00% 325,450 216,900
2001 Equipment Certificates 2/1/2001 12/31/2003 6.00% 332,030 332,030
'.... Civic Complex Lease Rev. Bonds - 98A 8/1/1998 2/1/2019 4.20 % -5.35% 5,350,000 5,185,000
Public Project Revenue Ref. Bonds - 99C 9/1/1999 2/1/2010 4.75 % -5.10% 980,000 850,000
Total General Obligation Bonds
7,295,050 6,686,430
Special Assessment Bonds:
G.O. Improvement Refunding Bonds, 10/1/1996 2/1/2007 4.20 % -5.20% 4,685,000 2,565,000
Series 1996A
G.O. Improvement Refunding Bonds, 8/1/1998 2/1/2015 4.50 % -4.90% 4,310,000 4,020,000
Serie 1998A
G.O. Improvement Refunding Bonds, 8/1/1998 2/1/2015 4.50 % -4.90% 2,000,000 1,885,000
..... Series 1998B
G.O. Improvement Refunding Bonds, 9/1/1999 2/1/2006 4.25 % -4.70% 1,725,000 1,725,000
Series 1999A
IMMO
MIMS
Total Special Assessment Bonds
12,720,000 10,195,000
Revenue Bonds:
G.O. Water Revenue Bonds, 10/1/1996 2/1/2012 4.10 % -5.70% 3,320,000 2,785,000
Series 1996B
G.O. Water Revenue Bonds, 9/1/1999 2/1/2008 4.25% -4.90% 680,000 680,000
Series 1999B
Total Revenue Bonds 4,000,000 3,465,000
Total - All Bonds 24,015,050 20,346,430
Contract for Deed Payable 4/30/1997 2/1/2002 8.00% 511,714 511,714
Contract for Deed Payable 12/1/1997 12/1/2002 8.00% 347,638 347,638
Contract for Deed Payable 12/21/1999 12/1/2002 6.00% 600,000 100,000
Total Contracts for Deed 1,459,352 959,352
Compensated Absences Payable N/A 373,854
Total Indebtedness $ 25,474,402 $ 21,679,636
Description and Restrictions of Long -Term Debt
General Obligation Bonds — The bonds were issued for improvements or projects which benefited the City as a
whole and are, therefore, repaid from ad valorem levies.
Special Assessment Bonds — These bonds were issued to finance various improvements and will be repaid
primarily from special assessments levied on the properties benefiting from the improvements. However, some
issues are partly financed by ad valorem levies.
31
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 4 CITY INDEBTEDNESS (CONTINUED)
Public Project Revenue Bonds and Civic Complex Lease Revenue Bonds — These bonds were issued by the
Economic Development Authority (EDA) of Lino Lakes for the purpose of financing the construction of public
facilities. Pursuant to Minnesota Statutes and a lease purchase contract between the EDA and the City of Lino
Lakes, a Trust Indenture between the EDA and a regional bank has been established for the purpose of financing
payment of these bonds. The City has pledged rental payments in amounts equal to the debt service
requirements and plans to annually appropriate City funds available for this purpose. As required by bond
covenant, a reserve account has been established with a trustee, which is to be used to pay principal and interest
on the bonds in the event that other available resources are inadequate to do so.
Through the transactions described above, the City (Primary Government) has, in substance, assumed the debt
service on the revenue bonds issued by the EDA. Therefore, the bonds have been included in the Primary
Government's General Long -Term Debt Account Group. Further, the lease payment made by the City will be
reflected as debt service principal and interest payments on the City's operating statements.
Contract for Deeds — The City has entered into two contracts for deed bearing interest at 8 %, these contracts
were issued for the purchase of land for the express purpose of resale. The contracts for deed will be repaid from
the proceeds of land sales. One of the contracts calls for monthly interest only payments with a balloon payment
due m December of 2002. The second contract calls for payments equal to $2.50 per square foot to be made as
land is sold, with the final unpaid balance due on January 31, 2002. Such payments are then applied first to
interest accrued since the last payment date and then to the principal balance. This contract was paid off on
January 28, 2002 in the amount of $678,948. The third contract for deed bears interest at 6 %, this contract calls
for annual payments through February 1, 2002. This contract was paid off on January 28, 2002 for $106,000.
Liability for Compensated Absences — This liability represents vested benefits earned by governmental fund
employees through the end of the year which will be paid or used in future periods. The liability for Proprietary
Fund employees is included in the accrued liabilities of those funds.
32
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
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 2001 and 2000 is computed as
follows:
Market value
Applicable percentage
Debt Limit
December 31,
2001 2000
903,685,700 775,398,200
2 % 2 %
18,073,714 15, 507,964
Amount of debt applicable to debt limit:
Total bonded debt 20,346,430 24,416,450
- Less: Special assessment bonds (10,195,000) (13,165,000)
Public project revenue bonds (6,035,000) (6,285,000)
Revenue bonds (3,465,000) (4,340,000)
Total debt applicable to debt limit 651,430 626,450
Legal debt margin 17,422,284 14,881,514
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 Minnesota (PERA). PERA
administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire
Fund (PEPFF) which are cost - sharing, multiple - employer retirement plans. 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 a step -rate benefit accrual formula (Method 1) or a level accrual
formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent
of average salary for each of the first 10 years and 2.7 percent for each remaining year. For a
Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent
for each remaining year.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 6
DEFINED BENEFIT PENSION PLANS — STATEWIDE (CONTINUED)
Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and
1.7 percent for Coordinated Plan members for each year of service. For PEPFF members, the annuity
accrual rate is 3.0 percent for each year of service. For 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 m 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 fmancial report that includes fmancial statements and required
supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA, 60
Empire Drive #200, St. Paul, Minnesota, 55102 or by calling (651) 296 -7460 or 1- 800 - 652 -9026.
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 8.75% and 4.75 %, respectively, of their annual
covered salary. PEPFF members are required to contribute 6.20% of their annual covered salary.
The City of Lino Lakes is required to contribute the following percentages of annual covered payroll:
11.43% for Basic Plan PERF members, 5.18% for Coordinated Plan PERF members, and 9.30% for
PEPFF members. Member and employer contribution rates for Basic and coordinated members will
increase by 0.35% effective January 2002. The City's contributions to the Public Employees
Retirement Fund for the years ending December 31, 2001, 2000, and 1999 were $112,960, $98,206,
and $71,655, respectively. The City's contributions to the Public Employees Police & Fire Fund for
the years ending December 31, 2001, 2000, and 1999 were $105,655, $109,049, and $103,471,
respectively. The City's contributions were equal to the contractually required contributions for each
year as set by state statute.
34
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 7 METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES
During 1971, the Metropolitan Waste Control Commission (MWCC) was organized to provide for consolidation
of the sanitary sewer collection, treatment and disposal in the seven county metropolitan area surrounding
Minneapolis and St. Paul. Previously, these operations were maintained by the city governments on an
individual or collective basis. The MWCC merged with the Metropolitan Council during 1994 to form
Metropolitan Council Wastewater Services (MCWS) and is now called the Metropolitan Council Environmental
Services (MCES). The MCES bills the City annually based upon estimated volume and budgeted costs. The
City follows the accounting policy of recognizing these charges as an expense of the sewer utility operation in
the year for which they are billed.
Note 8 RECONCILIATION OF CONTRIBUTED CAPITAL
Changes to contributed capital during the year are as follows:
Water
Sewer
Total
Beginning
Balance
$ 9,137,401
13,980,160
$ 23,117,561
Note 9 SEGMENT INFORMATION
Capital
Contributions
$ 409,605
472,630
$ 882,235
Depreciation
on Contributed
Assets
$ (209,500)
(319,971)
$ (529,471)
Ending
Balance
$ 9,337,506
14,132,819
$ 23,470,325
The City actively maintains two Enterprise Funds which provide water and sanitary sewer services. Segment
information for the year ended December 31, 2001 is as follows:
Operating revenue
Depreciation expense
Operating income (loss)
Property, plant and
equipment additions
Capital Contributions
Net income (loss)
Operating transfers in
Net property, plant
and equipment
Net working capital
Total assets
Bonds payable
Total equity
Water Sewer
Utility Utility
$ 865,943 $ 1,011,983
295,706 336,857
61,588 99,747
2,074 2,074
409,605 472,630
211,625 135,911
307,650
12,762,678 14,231,647
349,148 1,470,911
13,763,896 15,710,492
3,465,000 -
10,164,619 15,688,053
Totals
2001
$ 1,877,926
632,563
161,335
4,148
882,235
347,536
307,650
26,994,325
1,820,059
29,474,388
3,465,000
25,852,672
2000
$ 1,594,672
609,383
(151,623)
1,233,267
37,522
320,509
26,730,505
1,078,244
29,185,135
4,340,000
24,612,901
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 10 STEWARDSHIP COMPLIANCE AND ACCOUNTABILTTY
Deficit Fund Balances
The City has deficit fund balances at December 31, 2001 as follows:
Fund Balance
Deficit
Debt Service Funds:
Improvement Bonds of 1998A 41,953
Capital Project Funds:
Dedicated Parks 397,460
MSA Construction 438,615
1997 Construction 343,018
1998 Construction 2,661,374
Town Center Project 29,501
Lake /Apollo Drive Improvement/Market Place 360,084
Tax Increment Financing 1 -5 17,726
Tax Increment Financing 1 -6 32,799
Tax Increment Financing 1 -7 138,243
Tax Increment Financing 1 -9 18,861
The City intends to fund these deficits through future tax levies, special assessment levies, tax increments,
transfers from other funds, and various other sources.
Expenditures in Excess of Budget
Revenues and expenditures exceeded 2001 budgets in the following fund:
Budget Actual
Program Recreation
Revenues $ 199,485 $ 241,482
Expenditures 190,705 251,072
Note 11 CONTINGENCIES
Litigation - The City attorney has indicated that existing and pending lawsuits, claims and other actions in which
the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City
attorney, remotely recoverable by plaintiffs.
Federal and State Funds - The City receives financial assistance from federal and state governmental agencies in
the form of grants. The disbursement of funds received under these programs generally requires compliance
with the terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies.
Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in
the opinion of management, any such disallowed claims will not have a material effect on any of the financial
statements of the individual fund types included herein or on the overall financial position of the City at
December 31, 2001.
36
a
Wow
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 12 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
General Obligation bond issues sold by the City are financed by ad valorem tax levies and special assessment
bond issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments
levied against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem
tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County
Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject
to cancellation when and if the City has provided alternative sources of financing. The City Council is required
to levy any additional taxes found necessary for full payment of principal and interest.
These future scheduled tax levies are not shown as assets in the accompanying fmancial statements at
December 31, 2001 and 2000.
Future scheduled tax levies for all bonds outstanding at December 31, 2001 totaled $12,365,748.
Note 13 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY
At December 31, 2001 and 2000, 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,
2001 and 2000 are shown on the various balance sheets as segregations of the fund equity. A summary of such
designations is as follows:
December 31,
2001 2000
General Fund:
Reserve for prepaid items $ 105,969 $ 105,052
Designated for cash flow reserve 3,818,700 3,436,544
Special Revenue Fund:
Reserve for prepaid items 1,551 1,017
Designated for recreation programs 41,195 51,319
Debt Service Funds:
Reserved for debt retirement 1,768,402 4,101,453
Capital Project Funds:
Reserved for Advance to Other Funds 853,917 582,916
Reserved for land held for resale 989,506 989,506
Designated for capital improvements 10,146,843 10,061,453
Enterprise Funds:
Reserved for Equipment Replacement 474,423
Totals $ 18,200,506 $ 19,329,260
Note 14 SHARE IN GAS FRANCHISE PROFITS
The City receives a share of the gross billing for natural gas sales by a neighboring City, which provides service
within the City of Lino Lakes. The amount reported as revenue in the General Fund was $56,600 for 2001.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 15 INTERFUND RECEIVABLE AND PAYABLES
Individual fund receivable and payable balances at December 31, 2001 are as follows:
Fund
Receivable Payable
Debt Service Fund:
Improvement Bonds of 1998A $ - $ 41,753
Capital Project Funds:
Area and Unit Charge 6,072,346
MSA Construction - 435,784
1997 Construction - 1,375,534
1998 Construction 2,647,628
Town Center Project - 1,019,007
Lake /Apollo Drive Improvement/ Market Place - 286,782
Tax Increment Financing District 1 -6 - 32,487
Tax Increment Financing District 1 -7 - 108,054
Tax Increment Financing District 1 -8 9,264
Agency Fund:
Investment Fund 116,053
$ 6,072,346 $ 6,072,346
Advances to /from Other Funds
Dedicated Parks $ - $ 853,917
Areas and Unit Charges 853,917
$ 853,917 $ 853,917
Note 16 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.
38
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 16 RISK MANAGEMENT (CONTINUED)
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 17 CONDUIT DEBT OBLIGATIONS
The City has issued Industrial Development Revenue Bonds to provide financial assistance to private- sector
entities for the acquisition and construction of industrial and commercial facilities which are deemed to be in the
public interest. The bonds are secured by the property financed and are payable solely from payments on the
underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the
private sector entity served by the bond issue. The City is not obligated in any manner for the repayment of the
bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of
December 31, 2001, two series of Industrial Revenue Bonds were outstanding with aggregate remaining
principal balances of $2,370,000 and $4,400,000, respectively.
Note 18 LEASE COMMITMENT
The City of Lino Lakes entered into a lease agreement dated December 8, 1997 whereby the City constructed a
facility on property it already owned. Upon completion, this facility was leased to the Independent School
District No. 12 (ISD 12), the tenant, in January 1999 and will continue until June 30, 2009. The tenant's
.— payments are $110 per square foot per year for a total of $1,200,000 over the term of the lease. The schedule of
remaining payments is as follows:
Maw
2002 $ 112,500
2003 112,500
2004 112,500
2005 112,500
2006 112,500
Thereafter 300,000
$ 862,500
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
Note 19 JOINT FIRE VENTURE
The Centennial Fire District (the District) was established under a joint powers agreement between the City of
Lino Lakes and two other cities. The general purpose of the District is to provide fire protection services
including, but not limited to, fire prevention, firefighting and rescue service. Each member city is entitled to
appoint two commissioners to the District's Board.
Each calendar year participating cities are to pay the District its share of the total operating and capital budget in
accordance with a funding formula contained in Section VII of the joint powers agreement. The funding
formula takes into account each city's average number of calls, population, and total market value.
During 2001, the City of Lino Lakes' contributions to the District were as follows:
Operating $ 308,236
Capital 65,900
$ 374,136
Separate financial statements of the District can be obtained by contacting the Centennial Fire District.
The audited condensed fmancial statements of the District as of December 31, 2001 are as follows:
Total assets $ 884,647
Total liabilities 54,982
Total net assets 829,665
Total operating revenue 636,618
Total operating expenses 591,466
40
COMBINING, INDIVIDUAL FUND AND
ACCOUNT GROUP
FINANCIAL STATEMENTS
GENERAL FUND
The General fund accounts for all financial resources except those required to be accounted for in
— another fund.
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
BALANCE SHEET
December 31, 2001
With Comparative Amounts At December 31, 2000
Statement 6
2001 2000
Assets
Cash and investments $ 4,005,214 $ 3,262,693
Accounts receivable 87,151 77,823
Due from other governmental units 106,699 356,154
Taxes receivable:
Delinquent 48,242 31,804
Due from County 86,290 59,852
— Prepaid items 105,969 105,052
Total assets $ 4,439,565 $ 3,893,378
II Imes
Liabilities and Fund Balance
Liabilities:
Accounts payable $ 303,835 $ 173,408
Salaries payable 154,520 136,239
Due to other governmental units 7,741 5,003
Deferred revenue 48,800 37,132
Total liabilities 514,896 351,782
Fund balance:
Reserved for prepaid items
Unreserved:
Designated for cash flow reserve
Total fund balance
Total liabilities and fund balance
Mow
41
105,969
3,818,700
3,924,669
$ 4,439,565
105,052
3,436,544
3,541,596
$ 3,893,378
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For the Year Ended December 31, 2001
(With Comparative Amounts For The Year Ended December 31, 2000)
Statement 7
Page 1 of 6
2001
Over (Under)
Budget Actual Budget
2000
Actual
Revenue:
General property taxes:
Current and delinquent $ 4,132,048 $ 3,516,629 $ (615,419) $ 2,850,171
Fiscal disparities 586,755 586,755 452,164
Excess tax increments 20,000 21,880 1,880 3,722
Total general property taxes 4,152,048 4,125,264 (26,784) 3,306,057
Licenses and permits:
Non- business 695,193 985,873 290,680 849,992
Business 28,625 30,583 1,958 34,754
Total licenses and permits 723,818 1,016,456 292,638 884,746
Intergovernmental:
Federal:
Other 42,200 64,900 22,700 76,562
State:
Homestead credit 303,621
Mobile home homestead credit 3,470 3,470 3,470
Police state aid 120,000 120,032 32 110,384
MSA maintenance 140,000 144,216 4,216 147,707
Other 30,000 16,595 (13,405) 20,622
County/Regional:
Solid waste 38,000 40,959 2,959 40,240
Other 2,500 19,435 16,935 -
Total intergovernmental 372,700 409,607 36,907 702,606
Special Assessments:
Penalties and Interest 4,835 4,835 5,405
Charges for services:
General government 34,500 28,577 (5,923) 35,493
Planning/engineering 50,000 13,402 (36,598) 18,040
Recreation - - 7,000
Fees retained from collection for
other governments - SAC /surcharge 4,000 5,155 1,155 4,521
Administrative charge - other funds 90,000 130,723 40,723 122,892
Aerial map charge - other funds 15,000 16,650 1,650 18,810
Public safety 51,000 84,356 33,356 65,389
Total charges for services 244,500 278,863 34,363 272,145
Fines and forfeits 100,000 101,559 1,559 124,458
Investment eamings 90,000 95,004 5,004 140,592
Refunds and reimbursements 45,000 46,677 1,677 58,200
Miscellaneous:
Gas franchise fees 42,000 56,600 14,600 56,600
Cable TV 35,000 30,840 (4,160) 33,427
Sale of property 18,000 19,102 1,102 22,158
Donations 8,560 8,560 - 7,001
Other - 467 467 -
Total miscellaneous 103,560 115,569 12,009 119,186
Total revenue
5,831,626 6,193,834 362,208 5,613,395
42
✓ , CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
- For the Year Ended December 31, 2001
(With Comparative Amounts For The Year Ended December 31, 2000)
Statement 7
Page 2 of 6
2001
Over (Under)
Budget Actual Budget
2000
Actual
Expenditures:
- General govemment:
Mayor and council:
Current
Personal services $ 37,525 $ 35,203 $ (2,322) $ 33,802
Supplies 500 369 (131) 611
Other services and charges 49,400 43,206 (6,194) 34,744
Contractual Services 22,500 24,299 1,799 19,748
Total mayor and council 109,925 103,077 (6,848) 88,905
_
Elections:
Current
Personal services 8,050 3,931 (4,119) 13,787
Mos Supplies 500 29 (471) 346
Other services and charges 800 1,340 540 1,607
Capital outlay 2,500 - (2,500) 24,696
Total elections 11,850 5,300 (6,550) 40,436
- Administration:
Current
Personal services 354,288 319,110 (35,178) 312,820
Supplies 285 285 3,256
Other services and charges 25,825 23,955 (1,870) 27,058
Contractual Services 12,200 1,580 (10,620) 6,578
Capital outlay 900 - (900) 1,873
Total administration 393,213 344,930 (48,283) 351,585
Finance:
Current
Personal services 226,700 229,568 2,868 162,162
- Supplies 2,000 2,465 465 2,517
Other services and charges 40,170 21,205 (18,965) 48,008
Contractual Services 60,800 61,786 986 55,956
Capital outlay - - - 1,819
Total finance 329,670 315,024 (14,646) 270,462
Cable TV:
Current
Personal services 3,820 2,486 (1,334) 1,729
Supplies - - - 90
Total cable TV 3,820 2,486 (1,334) 1,819
Consultants:
Current
Legal 132,500 143,762 11,262 147,100
Community Development:
Current
_ Personal services 126,890 100,477 (26,413)
Other services and charges 4,000 1,053 (2,947)
Contractual Services 300 363 63
Capital outlay 300 - (300)
- 131,490 101,893 (29,597)
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For the Year Ended December 31, 2001
(With Comparative Amounts For The Year Ended December 31, 2000)
Statement 7
Page 3 of 6
2001
Over (Under)
Budget Actual Budget
2000
Actual
General govemment: (continued)
Economic Development:
Current
Personal services $ 130,278 $ 127,573 $ (2,705) $ 169,368
Supplies 300 215 (85) 1,702
Other services and charges 23,000 26,583 3,583 26,612
Contractual services 16,200 690 (15,510) 1,066
Capital outlay 500 (500) 4,049
Total economic development 170,278 155,061 (15,217) 202,797
Planning and zoning commission:
Current
Personal services 128,170 110,431 (17,739) 119,663
Supplies 214 214 477
Other services and charges 40,380 17,188 (23,192) 8,526
Contractual services 18,700 18,041 (659) 13,625
Capital outlay - - - 475
Total planning and zoning commission 187,250 145,874 (41,376) 142,766
Engineering/planning:
Current
Other services and charges - 35
Contractual services 190,000 173,204 (16,796) 174,509
Capital outlay - - 1,557
Total engineering/planning 190,000 173,204 (16,796) 176,101
Senior Service
Current
Personal services 23,723 25,293 1,570 12,450
Other services and charges 950 954 4 897
Capital outlay - •• - 511
Total charter commission 24,673 26,247 1,574 13,858
Charter commission:
Current
Other services and charges 2,400 836 (1,564) 515
Capital outlay - - 538
Total charter commission 2,400 836 (1,564) 1,053
General government buildings:
Current
Personal services 57,846 68,727 10,881 53,966
Supplies 55,500 35,682 (19,818) 32,637
Other services and charges 217,300 208,005 (9,295) 192,859
Contractual services 48,500 24,811 (23,689) 27,166
Capital outlay 17,800 16,696 (1,104) 27,018
Total general government buildings 396,946 353,921 (43,025) 333,646
Total general government 2,084,015 1,871,615 (212,400) 1,770,528
44
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For the Year Ended December 31, 2001
(With Comparative Amounts For The Year Ended December 31, 2000)
Statement 7
Page 4 of 6
2001
Over (Under)
Budget Actual Budget
2000
Actual
Public safety:
Police:
Current
Personal services $ 1,595,966 $ 1,569,394 $ (26,572) $ 1,471,071
Supplies 22,150 20,868 (1,282) 29,780
•• Other services and charges 76,640 64,116 (12,524) 85,200
Contractual services 35,070 30,957 (4,113) 38,922
Capital outlay 31,100 33,214 2,114 31,617
Total police 1,760,926 1,718,549 (42,377) 1,656,590
Fire protection:
Current
Contractual services 308,237 308,236 (1) 294,005
Building inspection:
Current
Personal services 188,895 175,309 (13,586) 170,278
Supplies 52 52 1,613
Other services and charges 4,885 7,032 2,147 2,392
Contractual services 30,600 36,968 6,368 33,435
Capital outlay 1,000 - (1,000) 33
Total building inspection 225,380 219,361 (6,019) 207,751
IMO
Total public safety
Public works:
2,294,543 2,246,146 (48,397) 2,158,346
Streets:
Current
Personal services 347,670 349,537 1,867 271,243
Supplies 86,050 119,374 33,324 82,369
Other services and charges 58,600 69,880 11,280 70,897
Contractual services 100,350 89,206 (11,144) 102,246
Total streets 592,670 627,997 35,327 526,755
.... Fleet:
Current
Personal services 85,291 73,263 (12,028) 71,727
Supplies 128,450 120,946 (7,504) 136,170
Other services and charges 36,740 46,065 9,325 31,553
Contractual services - 18 18 25
Capital outlay - - 20,190
Total fleet 250,481 240,292 (10,189) 259,665
Total public works
843,151 868,289 25,138 786,420
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For the Year Ended December 31, 2001
(With Comparative Amounts For The Year Ended December 31, 2000)
Statement 7
Page 5 of 6
2001
Over (Under)
Budget Actual Budget
2000
Actual
Parks and recreation:
Parks:
Current
Personal services $ 348,629 $ 346,473 $ (2,156) $ 328,132
Supplies 49,000 36,975 (12,025) 51,262
Other services and charges 30,810 31,228 418 40,534
Contractual services 16,100 21,182 5,082 13,776
Capital outlay - - - 7,695
Total parks 444,539 435,858 (8,681) 441,399
Recreation:
Current
Personal services 212,801 209,464 (3,337) 189,190
Supplies 4,000 3,062 (938) 5,922
Other services and charges 20,700 9,286 (11,414) 14,738
Contractual services 4,890 5,690 800 4,328
Capital outlay - - 286
Total recreation 242,391 227,502 (14,889) 214,464
Total parks and recreation 686,930 663,360 (23,570) 655,863
Conservation of natural resources:
Forestry:
Current
Personal services 32,856 32,887 31 31,619
Supplies 2,100 368 (1,732) 208
Other services and charges 500 480 (20) 280
Contractual services 3,650 39,214 35,564 7,009
Capital outlay 25,000 16,413 (8,587) 31,110
Total forestry 64,106 89,362 25,256 70,226
Environmental:
Current
Personal services 32,806 32,457 (349) 31,209
Supplies 2,200 434 (1,766) 2,494
Other services and charges 10,500 6,008 (4,492) 6,876
Contractual services 8,400 2,235 (6,165) 212
Total environmental 53,906 41,134 (12,772) 40,791
46
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For the Year Ended December 31, 2001
(With Comparative Amounts For The Year Ended December 31, 2000)
Statement 7
Page 6 of 6
_ 2001
Over (Under) 2000
Budget Actual Budget Actual
Conservation of natural resources: (continued)
Solid waste abatement:
Current
Personal services $ 7,175 $ 9,125 1,950 $ 7,909
Supplies 200 99 (101) 50
Other services and charges 2,200 260 (1,940) 1,983
Contractual services 15,200 16,032 832 16,694
Capital outlay 5,000 2,843 (2,157) 4,338
Total solid waste abatement 29,775 28,359 (1,416) 30,974
Total conservation of natural resources 147,787 158,855 11,068 141,991
Total expenditures 6,056,426 5,808,265 (248,161) 5,513,148
Revenue over expenditures (224,800) 385,569 610,369 100,247
Other financing sources (uses):
Operating transfer from Capital Projects Funds 56,875
Operating transfer to Special Revenue Fund (2,496) (2,496) (50,000)
Total other financing sources (uses) (2,496) (2,496) 6,875
Maw
Net increase (decrease) in fund balance $ (224,800) 383,073 $ 607,873 107,122
Fund Balance - January 1 3,541,596 3,434,474
lawr
Fund balance - December 31 $ 3,924,669 $ 3,541,596
MOB
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.
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.
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31, 2001
(With Comparative Totals For December 31, 2000)
Statement 8
Economic Community
Development Development Program Totals
Authority Block Grant Recreation 2001 2000
Assets
Cash and investments $ 205 $ $ 46,244 $ 46,449 $ 53,882
Due from other governments 2,673
Prepaid items
1,551 1,551 1,017
Total assets $ 205 $ $ 47,795 $ 48,000 $ 57,572
Liabilities and Fund Balance
Liabilities:
Interfund payable $ $ - $ - $ - $ 4,760
Accounts payable - 4,771 4,771 1,374
Salaries payable 205 278 483 1,189
Total liabilities 205 - 5,049 5,254 7,323
Fund balance:
Reserved for prepaid items - 1,551 1,551 1,017
Unreserved:
Designated for recreation programs 41,195 41,195 51,319
Undesignated (2,087) - -
Total fund balance 42,746 42,746 50,249
Total liabilities and fund balance $ 205 $ $ 47,795 $ 48,000 $ 57,572
48
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2001
(With Comparative Totals For the Year Ended December 31, 2000)
Statement 9
Revenue:
Intergovernmental:
Federal:
CDBG
Charges for services:
Recreation fees
Investment earnings
Total revenues
Expenditures:
General government:
Current:
Economic Community
Development Development Program Totals
Authority Block Grant Recreation 2001 2000
$
$ 25 $ $ 25 $ 19,109
25
238,983 238,983 194,628
2,499 2,499 3,193
241,482 241,507 216,930
_ Personal services 409 409 10,876
Other services and charges - 8,796
Contractual services 25 25
Parks, recreation and forestry:
••••• Current:
Personal services 99,521 99,521 87,895
Supplies 150,580 150,580 92,617
Other services and charges 439 439 458
,. Contractual services 532 532
Total expenditures 409 25 251,072 251,506 200,642
Revenue (under) expenditures (409) (9,590) (9,999) 16,288
Other financing (uses)
Operating transfer from General Fund 1,552 944 2,496 -
Fund balance - January 1 (1,143) (944) 52,336 50,249 33,961
Fund balance - December 31 $ - $ - $ 42,746 $ 42,746 $ 50,249
49
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUND - PROGRAM RECREATION
STATEMENT OF REVENUE, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2001
(With Comparative Totals For the Year Ended December 31, 2000)
Statement 10
2001
Over
(Under)
Budget Actual Budget
2000
Actual
Revenue:
Charges for services:
Recreation Fees $ 199,485 $ 238,983 $ 39,498 $ 194,628
Investment earnings - 2,499 2,499 3,193
Total revenue 199,485 241,482 41,997 197,821
Expenditures:
Current:
Personal services 104,525 99,521 (5,004) 87,895
Supplies 52,035 150,580 98,545 92,617
Other services and charges 10,050 439 (9,611) 458
Contractual services 22,095 532 (21,563)
Capital outlay 2,000 (2,000)
Total expenditures 190,705 251,072 60,367 180,970
Net increase (decrease) in fund balance $ 8,780 (9,590) $ (18,370) 16,851
Fund balance - January 1 52,336 35,485
Fund balance - December 31 $ 42,746 $ 52,336
50
Maw
DEBT SERVICE FUNDS
The Debt Service Funds account for the accumulation of resources for, and the payment of,
interest, principal and related costs on general long -term debt.
The City's Debt Service Funds account for three types of bonded indebtedness:
• General Debt Bonds - are repaid primarily from property taxes.
• Improvement Bonds - are repaid primarily from special assessments.
• Public Facility Lease Revenue Bonds - are repaid primarily from lease
revenues received from the EDA leasing the buildings to the City of Lino
Lakes and other tenants.
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 2001
(With Comparative Totals For 2000)
Improvement Improvement Improvement Improvement
Bonds of Bonds of Bonds of Bonds of
1992A 1996A 1998A 1998B
Assets
Cash and investments $ $ 170,298 $ $ 292,918
Cash and investments
with escrow agent -
Accrued Interest Receivable
Accounts Receivable
Taxes receivable:
Delinquent 1, 164
Due from County 2,045
Special assessments receivable:
Delinquent 94 7,068 1,047
Deferred - 125,926 634,051 335,895
Due from County 570 1,495
Total assets $ $ 296,888 $ 641,119 $ 634,564
Liabilities and Fund Balance
Liabilities:
Interfund payable
Accounts payable
Deferred revenue
Total liabilities
$ $ 41,753 $ -
43,845 200 200
126,020 641,119 338,106
169,865 683,072 338,306
Fund balance
Reserved for debt retirement 127,023 - 296,258
Unreserved - undesignated - (41,953) -
Total fund balance 127,023 (41,953) 296,258
Total liabilities and fund balance $ $ 296,888 $ 641,119 $ 634,564
51
NIONN
WIMP
VIM
MEV
Immo
Statement 11
Public Project Lease Improvement Public Project
Certificates Revenue Revenue Refunding Refunding
of Bonds Bonds Bonds Bonds Totals
Indebtedness of 1990A of 1998A of 1999A of 1999C 2001 2000
$ 61,415 $
3,139
4,863
$ 69,417 $
$ $
3,139
3,139
66,278
66,278
69,417 $
$ 307,528 $ 96,224 $ 304,525 $ 1,232,908 $ 1,987,282
497,889 10,070 507,959 2,184,015
645 - 645 34,247
56,250 56,250
2,492 1,019 7,814 9,769
4,352 - 1,760 13,020 13,008
230
31,950
8,439 1,151
1,127,822 925,569
2,065 3,781
$ 869,156 $ 128,404 $ 317,374 $ 2,956,922 $ 5,158,822
$ - $ $ $ 41,753 $ 104,533
200 200 - 44,645 44,915
2,492 32,180 1,019 1,144,075 936,489
2,692 32,380 1,019 1,230,473 1,085,937
866,464 96,024 316,355 1,768,402 4,101,453
- (41,953) (28,568)
866,464 96,024 316,355 1,726,449 4,072,885
$ 869,156 $ 128,404 $ 317,374 $ 2,956,922 $ 5,158,822
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
For the Year Ended December 31, 2001
With Comparative Totals For The Year Ended December 31, 2000
Revenue:
General property taxes:
Current and delinquent
Fiscal disparities
Intergovernmental:
State:
HACA and equalization aid
Special assessments:
Current and delinquent
Prepayments
Penalties and interest
Investment earnings
Lease Revenue
Total revenue
Improvement Improvement Improvement Improvement
Bonds of Bonds of Bonds of Bonds of
1992A 1996A 1998A 1998B
$ $ $ $ 88,306
14,706
51,720
10,003 17,671 55,933 50,834
54,409 329,003 27,942
117 11 9 218
6,823 - 5,068
10,120 78,914 384,945 238,794
Expenditures:
Debt service:
Principal 290,000
Interest 64,403
Fiscal charges 750
Total expenditures 355,153
Revenue over (under) expenditures (345,033)
595,000
140,115
2,250
737,365
(658,451
290,000
191 ,700
1,759
483,459
115,000
90,115
3,059
208,174
(98,514) 30,620
Other financing sources (uses):
Operating transfer from Capital Project Funds 409,743
Bond proceeds
Payment to refunding bond escrow
Total other financing sources (uses) 409,743 -
Net increase (decrease) in fund balance 64,710 (658,451) (98,514) 30,620
Fund balance - January 1 66,221 785,474 56,561 265,638
Residual equity transfer in (out) (130,931)
Fund balance - December 31 $ $ 127,023 $ (41,953) $ 296,258
53
Nom
Statement 12
Public Project Lease Improvement Public Project
Certificates Revenue Revenue Refunding Refunding
of Bonds Bonds Bonds Bonds Totals
Indebtedness of1990A of1998A of1999A of1999C 2001 2000
$ 213,883 $ 75,809 $ 189,036 $ - $ $ 567,034 $ 755,006
35,725 12,598 31,480 94,509 120,241
125,638 44,302 110,709 332,369 80,741
- 134,441 45,181
- - - - 411,354 731,217
357 166 373 1,251 61,664
3,580 13,710 20,769 6,418 326 56,694 164,574
lnEw - - 112,500 - 112,500 112,500
379,183 146,585 464,867 6,418 326 1,710,152 2,071,124
307,050 165,000 85,000 1,847,050 1,198,570
55,487 263,653 77,481 43,146 926,100 1,027,396
- 3,363 200 1,800 13,181 10,344
362,537 432,016 77,681 129,946 2,786,331 2,236,310
16,646 146,585 32,851 (71,263) (129,620) (1,076,179) (165,186)
- 409,743 419,968
- - (1,680,000) - (1,680,000)
(1,680,000) - (1,270,257) 419,968
16,646 146,585 32,851 (1,751,263) (129,620) (2,346,436) 254,782
49,632 394,179 833,613 1,716,356 (94,789) 4,072,885 3,818,103
(540,764) 130,931 540,764
$ 66,278 $ - $ 866,464 $ 96,024 $ 316,355 $ 1,726,449 $ 4,072,885
54
CAPITAL PROJECT FUNDS
IMIftk
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:
Mim
MMEI
Capital Improvement Projects - to account for the proceeds from Equipment Certificates.
Closed Bond Fund - to account for excess funds from matured bond issues.
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.
Street Reconstruction — to account for the financing of future reconstruction of City
streets.
Sealcoating - to account for money received from assessments and developer deposits for
future street sealcoating projects.
Surface Water Management - to account for the financing of surface water management
and storm water improvements.
SAC Revolving - to account for refunds from the Metropolitan Council Environmental
Service for properties that paid Sewer Area Charges (SAC) that will be collected in the
future.
Construction Funds - to account for the construction of public improvements.
Town Center Project - to account for costs associated with the construction of the City
Town Center project.
Civic Center Project - to account for costs associated with the construction of the Civic
Complex project
Tax Increment - to account for development projects financed with tax increments.
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals for December 31, 2000
Assets
Cash and investments
Accounts receivable
Due from other governmental units
Interfund receivable
Taxes receivable:
Due from County
Delinquent tax increment
Special assessments receivable:
Delinquent
Deferred
Due from County
Advances to Other Funds
Land held for resale
Total assets
Liabilities and Fund Balance
Liabilities:
Interfund payable
Accounts payable
Retainage payable
Due to Other Governments
Advances from Other Funds
Deferred revenue
Total liabilities
Fund balance (deficit):
Reserved for Advances to Funds
Reserved for land held for resale
Unreserved:
Designated:
Capital improvements
Undesignated
Total fund balance (deficit)
Capital
Improvement
Projects
$ 241,115
Closed
Bond
Fund.
Dedicated
Parks
Area
and
Unit
Charge
$ 939,223 $ 460,390 $ 896,249
18,921
6,072,346
164
33,453
17,604
1,497,056
16,682
853,917
$ 241,115 $ 972,840 $ 460,390 $ 9,372,775
11,187
229,928
229,928
Total liabilities and fund balance $ 241,115
55
9,997
33,617
43,614
929,226
929,226
$ 972,840
3,933
853,917
857,850
(397,460)
18,014
17,867
1,514,660
1,550,541
853,917
6,968,317
(397,460) 7,822,234
$ 460,390 $ 9,372,775
Now
Vamp
Omo
Statement 13
Page 1 of 3
Surface
MSA Street Water SAC Interim
Construction Reconstruction Sealcoating Management Revolving Construction
$
$
$ 445,957 $ 244,446 $ 1,306,745 $ 364,052 $ 196,529
58 3,887 6,637
21,081 90,283 384,057
359 1,201 1,461
$ 467,455 $ 339,817 $ 1,698,900 $ 364,052 $ 196,529
$ 435,784 $ $ $ $ $
2,831 2,161 5,412
4,466 5,682
21,140 94,170 390,694
438,615 21,140 100,797 401,788
(438,615)
(438,615)
446,315 239,020 1,297,112 - 196,529
- - 364,052
446,315 239,020 1,297,112 364,052 196,529
467,455 $ 339,817 $ 1,698,900 $ 364,052 $ 196,529
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals for December 31, 2000
Assets
Cash and investments
Accounts receivable
Due from other governmental units
Interfund receivable
Taxes receivable:
Due from County
Delinquent tax increment
Special assessments receivable:
Delinquent
Deferred
Due from County
Advances to Other Funds
Land held for resale
Total assets
Liabilities and Fund Balance
Liabilities:
Interfund payable
Accounts payable
Retainage payable
Due to Other Governments
Advances from Other Funds
Deferred revenue
Total liabilities
Fund balance (deficit):
Reserved for Advances to Other Funds
Reserved for land held for resale
Unreserved:
Designated:
Capital improvements
Undesignated
Total fund balance (deficit)
Total liabilities and fund balance
1996
Construction
1997
Construction
$ 717,346 $
1,032,516
1998
Construction
Town
Center
Project
989,506
$ 717,346 $ 1,032,516 $ $ 989,506
$ 1,375,534
1,375,534
717,346
717,346
$ 717,346 $
57
(343,018)
(343,018)
$ 2,647,628 $ 1,019,007
3,510
10,236
2,661,374
(2,661,374)
(2,661,374)
1,019,007
989,506
(1,019,007)
(29,501)
1,032,516 $ $ 989,506
taw
INENE
Statement 13
Page 2 of 3
Civic Town Lake /Apollo Dr General
Center Center Improvement Tax Increment
Project Infrastructure Market Place Administrative
$ 84,530 $ 13,214 $ $
$ 84,530 $ 13,214 $ $
$ 286,782 $
73,302
360,084
84,530 13,214
(360,084)
84,530 13,214 (360,084)
$ 84,530 $ 13,214 $ $
58
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals for December 31, 2000
Tax Tax Tax Tax
Increment Increment Increment Increment
Financing Financing Financing Financing
1 -4 1 -5 1 -6 1 -7
Assets
Cash and investments $ 45,969 $ 13,781 $ $
Accounts receivable - -
Due from other governmental units
Interfund receivable
Taxes receivable:
Due from County 3 1,425 65 9,195
Delinquent tax increment 807 172 2,916
Special assessments receivable:
Delinquent
Deferred
Due from County
Advances to Other Funds
Land held for resale
Total assets
Liabilities and Fund Balance
$ 45,972 $ 16,013 $ 237 $ 12,111
Liabilities:
Interfund payable $ $ - $ 32,487 $ 108,054
Accounts payable 971 377 39,384
Retainage payable
Due to Other Governments 31,961
Advances from Other Funds
Deferred revenue 807 172 2,916
Total liabilities 33,739 33,036 150,354
Fund balance (deficit):
Reserved for Advances to Other Funds -
Reserved for land held for resale
Unreserved:
Designated:
Capital improvements 45,972
Undesignated - (17,726) (32,799) (138,243)
Total fund balance (deficit) 45,972 (17,726) (32,799) (138,243)
Total liabilities and fund balance $ 45,972 $ 16,013 $ 237 $ 12,111
59
Statement 13
Page 3 of 3
Tax Tax Tax
Increment Increment Increment
Financing Financing Financing Totals
1 -8 1 -9 3 -1 2001 2000
$
$ 56,965 $ 156,919 $ 6,183,430 $ 5,662,499
- 18,921 15,422
1,032,516 -
6,072,346 6,263,850
414 - 8,086 19,188 115,075
73 1,955 43,040 48,963 8,858
28,350 6,626
2,025,930 2,309,972
19,703 7,259
853,917 582,916
989,506 989,506
$ 487 $ 58,920 $ 208,045 $ 17,292,770 $ 15,961,983
$ 9,264 $
10,011
73
19,348
(18,861)
(18,861)
6,754
1,955
8,709
$
- $ 5,914,540 $ 6,029,990
76,728 264,572 448,996
- 38,251 10,235
31,961 -
- 853,917 582,916
43,040 2,103,244 2,326,814
119,768 9,206,485 9,398,951
853,917 582,916
989,506 989,506
50,211 88,277 10,146,843 10,061,453
- - (3,903,981) (5,070,843)
50,211 88,277 8,086,285 6,563,032
$ 487 $
58,920 $ 208,045 $ 17,292,770 $ 15,961,983
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2001
With Comparative Totals For The Year Ended December 31, 2000
Revenue:
General property taxes:
Tax increments
Intergovernmental
County
Special assessments:
Current and delinquent
Prepayments
Penalties and interest
Utility Charges
Investment earnings
Refunds and reimbursements
Miscellaneous
Park dedication fees
Antenna Lease
Sale of property
Total miscellaneous
Total revenue
Capital Closed Area and
Improvement Bond Dedicated Unit MSA
Projects Fund Parks Charge Construction
$
11,328 - 83,120
74,659 - 653,299
19 - 287
166,418
8,959 26896 15,191 256,928
4,000
240,067
90,967
15,311
90,967 255,378
103,926 112,902 270,569
1,160,052
Expenditures:
Current:
General government:
Contractual services 4,044 9,610 77,901 13,472
Public works:
Contractual services
Capital outlay:
General government -
Public safety 176,741
Public works 181,279 359,483
Parks, recreation and forestry 204,990
Debt service: 250,000 -
Principal - 21,000 -
Interest
Construction /acquisition 3,000 36,987
Total expenditures 362,064 12,610 512,977 437,384 13,472
Revenue over (under) expenditures (258,138) 100,292 (242,408) 722,668 (13,472)
Other financing sources (uses):
Operating transfer from (to) Capital Project Funds - -
Operating transfer to General Fund
Operating transfer to Debt Service Funds - (409,743)
Operating transfer to Enterprise Funds - - (307,650)
Bond proceeds 332,030 - - -
Total other financing sources (uses) 332,030 - (717,393)
Net increase (decrease) in fund balance 73,892 100,292 (242,408) 5,275 (13,472)
Fund balance (deficit)
Beginning of year, as previously stated 156,036 828,934 (155,052) 7,816,959 (425,143)
Prior period adjustment
Beginning of year, as restated 156,036 828,934 (155,052) 7,816,959 (425,143)
Residual equity transfer in
Residual equity transfer out
Fund balance (deficit) - December 31 $ 229,928 $ 929,226 $ (397,460) $ 7,822,234 $ (438,615)
61
Umwr
IIMIt
IINIM
Statement 14
Page 1 of 3
Surface
Street Water SAC Interim
Reconstruction Sealcoating Management Revolving Construction
$
$ $
6,116 14,308 35,664
26,030 113,966 205,252
5 39 66
14,657 6,344 39,284
35,838 20,389
46,808
45,472
11,574 7,211
170,495 300,655 11,574 7,211
59,283 161,830
45,472 59,283
1,336 111,212
7,179
161,830 7,179
138,825 4,395 7,211
(33,646)
(33,646)
1,336 111,212 138,825 4,395 (26,435)
444,979 127,808 1,158,287 359,657 222,964
444,979 127,808 1,158,287 359,657 222,964
$ 446,315 $ 239,020
$ 1,297,112 $ 364,052 $ 196,529
62
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2001
With Comparative Totals For The Year Ended December 31, 2000
Town Civic
1996 1997 1998 Center Center
Construction Construction Construction Project Project
Revenue:
General property taxes:
Tax increments $ $ $ $ $
Intergovernmental
County - 1,032,516 327,436 -
Special assessments:
Current and delinquent
Prepayments _
Penalties and interest
Utility Charges
Investment earnings 22,472 - 2,752
Refunds and reimbursements
Miscellaneous
Park dedication fees
Antenna Lease
Sale of property
Total miscellaneous
Total revenue 22,472 1,032,516 327,436 2,752
Expenditures:
Current:
General government:
Contractual services
Public works:
Contractual services
Capital outlay:
General government
Public safety
Public works
Parks, recreation and forestry
Debt service:
Principal
Interest
Construction/acquisition
Total expenditures
1247 9,546
1,247
139,426
148,972
27,811
27,811
680
680
Revenue over (under) expenditures 22,472 1,031,269 178,464 (27,811) 2,072
Other financing sources (uses):
Operating transfer from (to) Capital Project Funds -
Operating transfer to General Fund
Operating transfer to Debt Service Funds - -
Operating transfer to Enterprise Funds
Bond proceeds
Total other financing sources (uses)
Net increase (decrease) in fund balance 22,472 1,031,269 178,464 (27,811)
Fund balance (deficit)
Beginning of year, as previously stated 694,874 (1,374,287) (2,839,838) (1,690)
Prior period adjustment
Beginning of year, as restated 694,874 (1,374,287) (2,839,838) (1,690)
Residual equity transfer in
Residual equity transfer out
Fund balance (deficit) - December 31 $ 717,346 $ (343,018) $ (2,661,374) $ (29,501) $ 84,530
2,072
82,458
82,458
63
Now
Statement 14
Page 2 of 3
Town Lake/Apollo Dr General
Center Improvement Tax Increment
Infrastructure Market Place Administrative
$
7,198
698
a a
17,702
..' 7,896 - 17,702
20,570
99,144 4,728
294,586
20,570 393,730
(12,674) (393,730)
33,646
33,646
4,728
12,974
(12,674) (360,084) 12,974
25,888 (12,974)
25,888 (12,974)
$ 13,214 a (360,084) a
64
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2001
With Comparative Totals For The Year Ended December 31, 2000
Revenue:
General property taxes:
Tax increments
Intergovernmental
County
Special assessments:
Current and delinquent
Prepayments
Penalties and interest
Utility Charges
Investment earnings
Refunds and reimbursements
Miscellaneous
Park dedication fees
Antenna Lease
Sale of property
Total miscellaneous
Total revenue
Tax Increment Tax Increment Tax Increment Tax Increment Tax Increment
Financing Financing Financing Financing Financing
1-4 1 -5 1 -6 1 -7 1 -8
1,442
1,442
$ (8,029) $ 12,250 $ 387,843 $ 37,281
739 - 259
(7,290) 12,250 387,843 37,540
Expenditures:
Current:
General government:
Contractual services 156 25,372 4,099 104,248 67,231
Public works:
Contractual services
Capital outlay:
General government _
Public safety _
Public works _
Parks, recreation and forestry -
Debt service:
Principal.
Interest
Construction/acquisition
Total expenditures 156 25,072 4,099 104,248 67,231
Revenue over (under) expenditures 1,286 (32,362) 8,151 283,595 (29,691)
Other financing sources (uses):
Operating transfer from Capital Project Funds
Operating transfer to General Fund
Operating transfer to Debt Service Funds
Operating transfer to Enterprise Funds
Bond proceeds
Total other financing sources (uses)
Net increase (decrease) in fund balance 1,286 (32,362) 8,151 283,595 (29,691)
Fund balance (deficit)
Beginning of year, as previously stated 44,686 14,636 (40,950) (421,838) 10,830
Prior period adjustment
Beginning of year, as restated 44,686 14,636 (40,950) (421,838) 10,830
Residual equity transfer in
Residual equity transfer out
Fund balance (deficit) - December 31 $ 45,972 $ (17,75).. $ (32,799) $ (138,243) $ (18,861)
65
Statement 14
Page 3 of 3
Tax Increment Tax Increment
,ww Financing Financing Totals
1-9 3 -1 2001 2000
$ 74,688 $ 565,509 S 1,069,542 $ 1,032,592
1,359,952
150,536 233,642
1,073,206 2,018,185
7,614 11,065
166,418 151,522
390 1,255 417,051 621,818
77,929 90,906
75,078 566,764
240,067 184,087
90,967 79,400
15,311 41,342
346,345 304,829
4,668,593 4,464,559
16,629 332,533 797,409 1,418,127
266,585 72,559
680 33,781
176,741 155,136
540,762 135,461
204,990 135,162
_ 250,000 250,000
21,000 4,142
501,810 725,663
16,629 332,533 2,759,977 2,930,031
58,449 234,231 1,908,616 1,534,528
50,000
(56,875)
(409,743) (419,968)
.r (307,650) (320,509)
332,030 325,450
(385,363) (421,902)
58,449 234,231 1,523,253 1,112,626
(8,238) (145,954) 6,563,032 5,330,406
120,000
... (8,238) (145,954) 6,563,032 5,450,406
440,942
(440,942)
$ 50,211 $ 88,277 $ 8,086,285 $ 6,563,032
Mow
66
ENTERPRISE FUNDS
Enterprise Funds are used to account for operations that are financed and operated in a manner
similar to private business enterprises. The intent of the government's council is 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:
IMmo
Vow
Water Fund - to account for customer water service charges that are used to finance
water operating expenses.
Sewer Fund - to account for customer sewer service charges that are used to finance
sewer operating expenses.
CITY OF LINO LAKES, MINNESOTA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
December 31, 2001
With Comparative Totals For December 31, 2000
Statement 15
Assets
Totals
Water Sewer 2001 2000
Current assets:
Cash and cash equivalents $ 570,012 $ 1,326,433 $ 1,896,445 $ 1,278,630
Cash and investments with escrow agent - - 650,367
Accrued interest receivable - - 12,734
Accounts receivable 131,829 145,834 277,663 206,892
Special assessments receivable:
Due from county 7,682 1,299 8,981 346
Prepaid items 4,397 5,279 9,676 6,671
Total current assets 713,920 1,478,845 2,192,765 2,155,640
Long term assets:
Special assessments, long term 287,298 287,298 298,990
Fixed assets:
Buildings 48,690 - 48,690 48,690
Equipment 122,020 165,530 287,550 283,402
Water and sewer systems 14,546,924 16,420,864 30,967,788 30,075,553
Total fixed assets 14,717,634 16,586,394 31,304,028 30,407,645
Less: Allowance for depreciation (1,954,956) (2,354,747) (4,309,703) (3,677,140)
Net fixed assets 12,762,678 14,231,647 26,994,325 26,730,505
Total assets
Liabilities and Fund Equity
$ 13,763,896 $ 15,710,492 $ 29,474,388 $ 29,185,135
Current liabilities:
Accounts payable $ 38,659 $ 3,040 $ 41,699 $ 95,505
Salaries payable 4,894 4,894 9,788 8,398
Accrued interest payable 74,475 - 74,475 97,276
Due to other governmental units 1,744 1,744 1,217
Bonds payable - current portion 245,000 245,000 875,000
Total current liabilities 364,772 7,934 372,706 1,077,396
Long -term liabilities:
Bonds payable - long term 3,220,000 - 3,220,000 3,465,000
Compensated absences - payable 14,505 14,505 29,010 29,838
Total liabilities 3,599,277 22,439 3,621,716 4,572,234
Fund equity:
Contributed capital 9,337,506 14,142,819 23,480,325 23,117,561
Retained earnings
Reserved 221,780 252,643 474,423
Unreserved 605,333 1,292,591 1,897,924 1,495,340
Total fund equity 10,164,619 15,688,053 25,852,672 24,612,901
Total liabilities and fund equity $ 13,763,896 $ 15,710,492 $ 29,474,388 $ 29,185,135
67
CITY OF LINO LAKES, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENSES
- AND CHANGES IN RETAINED EARNINGS
For The Year Ended December 31, 2001
With Comparative Totals For The Year Ended December 31, 2000
Statement 16
Totals
Water Sewer 2001 2000
Operating revenue:
Charges for services $ 771,404 $ 989,500 $ 1,760,904 $ 1,463,325
Hook -up charges 27,625 22,440 50,065 58,900
Water meter sales 61,867 - 61,867 71,242
Other operating revenue 5,047 43 5,090 1,205
Total operating revenue 865,943 1,011,983 1,877,926 1,594,672
-
Operating expenses:
Personal services 129,824 128,413 258,237 262,284
- Materials and supplies 253,022 4,774 257,796 257,187
Contractual services 57,316 39,824 97,140 124,547
MCES sewer charges 370,968 370,968 396,800
- Depreciation:
Purchased assets 86,206 16,886 103,092 104,578
Contributed assets 209,500 319,971 529,471 504,805
Utilities 54,859 23,161 78,020 86,257
_
Other 13,628 8,239 21,867 9,837
Total operating expenses 804,355 912,236 1,716,591 1,746,295
- Net income (loss) from operations 61,588 99,747 161,335 (151,623)
Other income (expense):
Investment earnings 6,448 34,110 40,558 70,738
- Special assessments 21,189 2,054 23,243 35,510
Bond interest (183,750) - (183,750) (234,812)
Paying agent fees (1,500) (1,500) (2,800)
- Total other income (expense) (157,613) 36,164 (121,449) (131,364)
Net income (loss) before operating transfers (96,025) 135,911 39,886 (282,987)
Operating transfers:
Operating transfer from Capital Projects Fund 307,650 307,650 320,509
Net income (loss) 211,625 135,911 347,536 37,522
Credit arising from transfer of depreciation
to contributed capital 209,500 319,971 529,471 504,805
Retained earnings - January 1 405,988 1,089,352 1,495,340 953,013
Retained earnings - December 31 $ 827,113 $ 1,545,234 $ 2,372,347 $ 1,495,340
Ilimmo
68
CITY OF LINO LAKES, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2001
With Comparative Totals For The Year Ended December 31, 2000
Statement 17
Cash flows from operating activities:
Operating income (loss)
Adjustments to reconcile operating income to
net cash flows from operating activities:
Depreciation
Change in assets and liabilities:
Decrease (increase) in receivables
Decrease (increase) in prepaid items
Increase (decrease) in payables
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Operating transfer from Capital Project Funds
Cash flows from capital and related financing activities:
Principal paid on revenue bonds
Investment with escrow agent
Collection of special assessments
Interest and paying agent fees on revenue bonds
Acquisition of fixed assets
Net cash flows from capital and related financing activities
Cash flows from investing activities:
Interest on investments
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Totals
Water Sewer 2001 2000
$ 61,588 $ 99,747 $ 161,335 $ (151,623)
295,706
(34,945)
(734)
(35,738)
285,877
307,650
(875,000)
650,367
25,372
(208,051)
(2,074)
(409,386)
19,182
203,323
336,857
(35,826)
(2,271)
(16,979)
381,528
928
(2,074)
(1,146)
34,110
414,492
632,563 609,383
(70,771) 6,341
(3,005) (1,921)
(52,717) 61,692
667,405 523,872
307,650
320,509
(875,000) (210,000)
650,367 2,528
26,300 35,510
(208,051) (237,612)
(4,148) (31,001)
(410,532) (440,575)
53,292
617,815
366,689 911,941 1,278,630
70,738
474,544
804,086
$ 570,012 $ 1,326,433 $ 1,896,445 $ 1,278,630
- Water lines in the amount of $409,605 were contributed to the Water Fund in 2001.
- Sewer lines in the amount of $472,630 were contributed to the Sewer Fund in 2001.
69
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.
CITY OF LINO LAKES, MINNESOTA
AGENCY FUNDS
COMBINING BALANCE SHEET
December 31, 2001
(With Comparative Totals For December 31, 2000)
Statement 18
Pending
Contractors Assessment Investment Totals
Deposits Deposits Fund 2001 2000
Assets
Cash and investments $ 532,111 $ 24,920 $ - $ 557,031 $ 528,256
Accrued interest receivable - 116,053 116,053 126,030
Deposits receivable 10,520 - 10,520 10,520
Total assets $ 542,631 $ 24,920 $ 116,053 $ 683,604 $ 664,806
Liabilities
Interfund payable $ - $ - $ 116,053 $ 116,053 $ 124,567
Accounts payable 133,495 133,495 58,653
Deposits payable 409,136 24,920 434,056 481,586
Total liabilities $ 542,631 $ 24,920 $ 116,053 $ 683,604 $ 664,806
70
CITY OF LINO LAKES, MINNESOTA Statement 19
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For The Year Ended December 31, 2001
Contractors deposits:
Assets
Cash and investments
Deposits receivable
Ramo
Total assets
OMIM
Balance Balance
January 1, December 31,
2001 Additions Deletions 2001
$ 503,336 $ 1,017,898 $ 989,123 $ 532,111
10,520 - 10,520
$ 513,856 $ 1,017,898 $ 989,123 $ 542,631
Liabilities
Accounts payable $ 57,190 $ 564,351 $ 488,046 $ 133,495
Deposits payable 456,666 1,028,010 1,075,540 409,136
Total Liabilities $ 513,856 $ 1,592,361 $ 1,563,586 $ 542,631
Pending Assessment Deposits:
Assets
Cash and investments
Liabilities
Deposits payable
Investment Fund:
Assets
Accrued interest receivable
Liabilities
Interfund payable $ 124,567 $ 116,053 $ 124,567 $ 116,053
Accounts payable 1,463 1,463
Total Liabilities $ 126,030 $ 116,053 $ 126,030 $ 116,053
$ 24,920 $ $ $ 24,920
$ 24,920 $ $ $ 24,920
$ 126,030 $ 116,053 $ 126,030 $ 116,053
Totals -All Trust and Agency Funds:
Assets
Cash and investments $ 528,256 $ 1,017,898 $ 989,123 $ 557,031
Accrued interest receivable 126,030 116,053 126,030 116,053
Deposits receivable 10,520 - 10,520
Total assets $ 664,806 $ 1,133,951 $ 1,115,153 $ 683,604
Liabilities
Interfund payable $ 124,567 $ 116,053 $ 124,567 $ 116,053
Accounts payable 58,653 564,351 489,509 133,495
Deposits payable 481,586 1,028,010 1,075,540 434,056
Total liabilities $ 664,806 $ 1,708,414 $ 1,689,616 $ 683,604
71
tlimm
GENERAL FIXED ASSETS ACCOUNT GROUP
The City maintains a separate account group for the fixed assets used in the governmental fund
Ammo type operations. They are assets of the City as a whole and not of individual funds.
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE
For the Year Ended December 31, 2001
Statement 20
Balance Balance
January 1, December 31,
2001 Additions Deletions 2001
Land and improvements $ 3,040,837 $ 65,252 $ $ 3,106,089
Buildings 6,423,900 22,505 6,446,405
Office equipment and furniture 941,238 107,478 2,527 1,046,189
Vehicles 1,080,445 251,970 115,201 1,217,214
Machinery and Shop Equipment 575,840 3,296 2,000 577,136
Other 718,370 2,509 720,879
Totals
Investment in General Fixed Assets from:
General Fund
Special Revenue Funds
Capital Project Funds
Grants
Donations
Debt Service Funds
Assets acquired before January 1, 1992
Total investment in General Fixed Assets
$ 12,780,630 $ 453,010 $ 119,728 $ 13,113,912
72
$ 1,031,444
15,929
9,999,739
45,252
79,652
61,400
1,880,496
$ 13,113,912
Wow
Mom
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
As of December 31, 2001
Statement 21
General government:
Administration/fmance
Elections
Economic development
Engineering/planning
Government buildings
Senior center
Total general government
Office Machinery
Land Equipment and
and and Shop Other
Improvements Buildings Furniture Vehicles Equipment Improvements Total
$ $ - $ 97,870 $ $ - $ $ 97,870
- - 48,805 - 48,805
284,431 8,825 19,201 - 312,457
- - 13,107 32,330 - - 45,437
945,014 6,433,447 496,525 6,809 24,388 7,906,183
- - 8,628 - - 8,628
1,229,445 6,433,447 673,760 51,531 6,809 24,388 8,419,380
_ Public safety:
Police 181,365 373,851 3,000 107,724 665,940
Public works:
Streets
Shop
Surface water management
Total public works
Parks, recreation and forestry:
Parks, recreation and forestry
Total parks, recreation and forestry
472,651
472,651
1,403,993
1,403,993
12,958 24,696 675,765 286,747 1,000,166
21,202 33,528 - 54,730
- 71,241 543,892
12,958 45,898 675,765 391,516 1,598,788
145,166 116,067 175,811 588,767 2,429,804
145,166 116,067 175,811 588,767 2,429,804
Totals $ 3,106,089 $ 6,446,405 $1,046,189 $ 1,217,214 $ 577,136 $ 720,879 $ 13,113,912
73
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
For The Year Ended December 31, 2001
Statement 22
Balance Balance
January 1, December 31,
2001 Additions Deletions 2001
General government:
Administration/finance $ 97,870 $ $ $ 97,870
Elections 48,805 48,805
Economic development 312,457 312,457
Engineering/planning 45,437 - 45,437
Government buildings 7,809,458 96,725 7,906,183
Senior center 8,628 - 8,628
Total general government 8,322,655 96,725 8,419,380
Public safety:
Police 641,575 124,677 100,312 665,940
Public works:
Streets 812,646
Shop 56,730
Surface water management 543,892
Total public works 1,413,268
Parks, recreation and forestry:
Parks, recreation and forestry
Total parks, recreation and forestry
187,520
187,520
2,403,132 44,088
2,403,132 44,088
1,000,166
2,000 54,730
543,892
2,000 1,598,788
17,416
17,416
2,429,804
2,429,804
Totals $ 12,780,630 $ 453,010 $ 119,728 $ 13,113,912
74
GENERAL LONG -TERM DEBT ACCOUNT GROUP
The General Long -Term Debt Account Group is used to account for long -term debt of the City
other than debt recorded in the Enterprise Funds.
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF GENERAL LONG -TERM DEBT
December 31, 2001
Statement 23
December 31,
2001 2000
Amount Available And To Be Provided For The
Retirement of General Long -Term Debt:
Amount available in Debt Service Fund $ 1,726,449 $ 4,072,885
Amount to be provided - future tax levies /assessments /tax increment collections
16,459,177 17,537,953
Total available and to be provided $ 18,185,626 $ 21,610,838
General Long -Term Debt Payable:
Bonds payable:
General Obligation Bonds:
1998 Equipment Certificates - 96,000
1999 Equipment Certificates 102,500 205,000
2000 Equipment Certificates 216,900 325,450
2001 Equipment Certificates 332,030
Civic Complex Lease Revenue Bonds - 1998A 5,185,000 5,350,000
Public Project Revenue Refunding Bonds - 1999C 850,000 935,000
Total general obligation bonds 6,686,430 6,911,450
Special assessment bonds:
G. O. Improvement Bonds of 1992A - 1,970,000
G. O. Improvement Bonds of 1996A 2,565,000 3,160,000
G. O. Improvement Bonds of 1998A 4,020,000 4,310,000
G. O. Improvement Bonds of 1998B 1,885,000 2,000,000
G. O. Improvement Bonds of 1999A 1,725,000 1,725,000
Total special assessment bonds 10,195,000 13,165,000
Total bonds payable 16,881,430 20,076,450
Contracts for deed payable 959,352 1,209,352
Compensated absences payable 344,844 325,036
Total general long -term debt $ 18,185,626 $ 21,610,838
75
SUPPLEMENTARY FINANCIAL INFORMATION
CITY OF LINO LAKES, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2001
Interest
Rates
Dated
Final
Maturity
Date
General Obligation Bonds:
1998 Equipment Certificates 6.00% 2/1/98 12/31/01
1999 Equipment Certificates 6.00% 2/1/99 12/31/02
2000 Equipment Certificates 6.00% 2/1/00 12/31/03
2001 Equipment Certificates 6.00% 2/1/01 12/31/04
Civic Complex Lease Revenue Bonds - 1998A 4.20 % -5.35% 8/1/98 2/1/19
Public Project Revenue Refunding Bonds - 1999C 4.75 % -5.10% 9/1/99 2/1/10
Total General Obligation Bonds
Special Assessment Bonds:
G. O. Improvement Bonds of 1992A 4.00 % -6.70% 4/1/92 2/1/06
G. O. Improvement Bonds of 1996A 4.20 % -5.20% 10/1/96 2/1/07
G. O. Improvement Bonds of 1998A 4.50 % -4.90% 8/1/98 2/1/15
G. O. Improvement Bonds of 1998B 4.50 % -4.90% 8/1/98 2/1/15
G. O. Improvement Refunding Bonds of 1999A 4.25 % -4.70% 9/1/99 2/1/06
Total General Improvement Bonds with special assessments pledged
Revenue Bonds:
G. O. Water Revenue Bonds of 1992B 4.50 % -6.80% 4/1/92 2/1/08
G. O. Water Revenue Bonds of 1996B 4.10 % -5.70% 10/1/96 2/1/12
G. O. Water Revenue Refunding Bonds of 1999B 4.25% -4.90% 9/1/99 2/1/08
Total Revenue Bonds
Total - all bonds
Contract for deed payable 8.00% 7/2/97 2/1/02
Contract for deed payable 8.00% 12/1/97 12/1/02
Contract for deed payable 6.00% 12/21/99 2/1/02
Total - Contracts for deed
Total City indebtedness
76
Mom
Exhibit 1
Prior Years Principal Interest
Original Payable 2001 Payable Due Due
Issue Payments 1/1/01 Issued Payments 12/31/01 In 2002 In 2002
$ 287,734 $ 191,734 $ 96,000 $ $ 96,000 $ - $ $ -
307,570 102,570 205,000 102,500 102,500 102,500 6,150
325,450 - 325,450 - 108,550 216,900 108,450 13,014
- 332,030 - 332,030 111,030 38,183
-
5,350,000 - 5,350,000 - 165,000 5,185,000 175,000 256,469
980,000 45,000 935,000 85,000 850,000 85,000 39,109
7,250,754 339,304 6,911,450 332,030 557,050 6,686,430 581,980 352,925
3,640,000 1,670,000 1,970,000 1,970,000 - -
4,685,000 1,525,000 3,160,000 595,000 2,565,000 590,000 112,565
4,310,000 - 4,310,000 290,000 4,020,000 290,000 178,650
2,000,000 2,000,000 115,000 1,885,000 110,000 85,053
1,725,000 1,725,000 - 1,725,000 - 70,681
16,360,000 3,195,000 13,165,000 2,970,000 10,195,000 990,000 446,949
1,060,000 340,000 720,000 720,000 - -
3,320,000 380,000 2,940,000 155,000 2,785,000 160,000 144,075
680,000 - 680,000 - 680,000 85,000 29,489
5,060,000 720,000 4,340,000 875,000 3,465,000 245,000 173,564
28,670,754 4,254,304 24,416,450 332,030 4,402,050 20,346,430 1,816,980 973,438
598,382 86,668 511,714 511,714 511,714 167,234
347,638 347,638 25,493
347,638 347,638 -
600,000 250,000 350,000 250,000 100,000 100,000 6,000
1,546,020 336,668 1,209,352 250,000 959,352 959,352 198,727
$ 30,216,774 $ 4,590,972 $ 25,625,802 $ 332,030 $ 4,652,050 $ 21,305,782 $ 2,776,332 $ 1,172,165
77
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2001
Exhibit 2
G.O. Public
Lease G. O. Improvement Project
Year of Equipment Equipment Equipment Revenue Improvement Refunding Refunding
Levy/ Certificates Certificates Certificates Bonds Bonds Bonds of Bonds
- Collection of 1999 of 2000 of 2001 of 1998A of 1998B 1999A 1999C Total
2001/2002 $ 114,082 $ 127,537 $ 156,674 $ 338,888 $ 151,273 $ 418,826 $ 118,317 $ 1,425,597
2002/2003 - 120,705 130,473 345,959 153,192 419,187 119,685 1,289,201
- 2003/2004 - 122,430 325,988 154,876 418,399 120,729 1,142,422
2004/2005 332,525 151,072 390,270 126,641 1,000,508
2005/2006 343,382 152,519 - 121,459 617,360
2006/2007 353,031 153,729 126,667 633,427
2007/2008 361,562 154,704 516,266
2008/2009 368,387 155,441 523,828
2009/2010 485,462 155,796 641,258
2010/2011 485,987 155,757 641,744
- 2011/2012 490,655 155,313 645,968
2012/2013 489,001 154,537 643,538
2013/2014 491,258 158,719 649,977
2014/2015 492,413 492,413
2015/2016 497,716 497,716
2016/2017 501,215 501,215
2017/2018 503,310 503,310
$ 114,082 $ 248,242 $ 409,577 $ 7,206,739 $ 2,006,928 $ 1,646,682 $ 733,498 $ 12,365,748
78
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS
December 31, 2001
G. O. G. O.
Equipment Equipment Equipment Improvement Improvement
Certificates Certificates Certificates Bonds Bonds
1999 2000 2001 of 1996A of 1998A
Bonds payable $ 102,500 $ 216,900 $ 332,030 $ 2,565,000 $ 4,020,000
Future interest payable 6,150 19,521 57,443 360,765 1,310,775
Totals $ 108,650 $ 236,421 $ 389,473 $ 2,925,765 $ 5,330,775
Payments to maturity:
2002 108,650 121,464 149,213 702,565 468,650
2003 114,957 124,260 493,980 455,600
2004 116,000 469,460 442,550
2005 444,785 429,500
2006 - - 419,965 416,450
2007 395,010 403,400
2008 - 385,462
2009 - 372,637
2010 - 359,670
2011 - 346,489
2012 333,094
2013 - 319,485
2014 305,805
2015 - 291,983
2016 -
2017
2018
2019
2020
2021
$ 108,650 $ 236,421 $ 389,473 $ 2,925,765 $ 5,330,775
79
•
Exhibit 3
G. 0.
Improvement
Bonds
of 1998B
$ 1,885,000
672,052
$ 2,557,052
195,053
190,103
190,040
189,752
184,352
183,840
183,103
182,140
180,882
179,256
177,248
174,888
172,230
174,165
$ 2,557,052
G. 0.
Improvement
Refunding
Bonds
of 1999A
G. 0. G. 0. Water Civic Public
Water Revenue Complex Project
Revenue Refunding Revenue Revenue
Bonds Bonds Bonds Bonds
of 1996B of 1999B of 1998A of 1999C Totals
$ 1,725,000 $ 2,785,000 $ 680,000 $ 5,185,000 $ 850,000 $ 20,346,430
202,008 1,000,174 119,215 2,823,652 190,958 6,762,713
$ 1,927,008 $ 3,785,174 $ 799,215 $ 8,008,652 $ 1,040,958 $ 27,109,143
390,682
391,553
391,350
390,081
363,342
304,075
301,355
303,108
304,195
299,725
299,680
298,915
419,034
419,682
418,864
416,541
114,489
110,834
111,983
112,795
118,143
113,154
117,817
431,469
438,618
444,975
426,078
431,860
441,625
450,282
457,595
346,594
455,094
455,068
459,002
456,790
458,415
458,990
463,181
465,845
467,171
124,109
120,071
116,034
131,521
126,534
116,640
111,790
101,964
92,295
3,110,419
2,741,331
2,585,500
2,428,707
2,360,371
1,953,349
1,547,369
1,533,370
1,399,123
1,399,703
1,381,951
953,375
934,825
924,563
458,990
463,181
465,845
467,171
$ 1,927,008 $ 3,785,174 $ 799,215 $ 8,008,652 $ 1,040,958 $ 27,109,143
80
CITY OF LINO LAKES, MINNESOTA
INSURANCE IN FORCE
December 31, 2001
Exhibit 4
Coverage
Amount
General Liability:
Bodily Injury/Property Damage $ 1,000,000
Personal Injury/Police Professional Liability 1,000,000
Employee Benefit Liability 1,000,000
Fire Legal Liability 50,000
Medical Expense Occurrence Limit 1,000
Medical Expense Aggregate 10,000
Property Damage ($500 Deductible)
Property:
Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers) 17,872,221
Faithful Performance Blanket Bond 500,000
Storage Tank Liability 100,000
Rented/Leased Equipment ($500 Deductible) 200,000
Public Official and Employee Liability ($500 Deductible each occurrence) 1,000,000
Automotive:
Bodily injury and property damage 1,000,000
Comprehensive and Collision Actual Cash Value
Uninsured motorists 1,000,000
Workmen's compensation Statutory
Umbrella Liability 1,000,000
Crime - Theft Disappearance and Destruction ($500 Deductible) 50,000
81
CITY OF LINO LAKES, MINNESOTA
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Exhibit 5
Tax Capacity Tax Capacity
Values Values
2000/2001 1999/2000
Taxable valuations:
Total $ 13,029,459 $ 11,398,762
Fiscal disparities:
Distribution 1,917,954 1,551,086
Contribution (760,789) (549,358)
Less: Captured Tax Increment Value (912,580) (804,752)
$ 13,274,044 $ 11,595,738
Tax Tax
Certified Capacity Certified Capacity
Levy Rate Levy Rate
Taxes Levied:
Revenue 4,105,048 30.917 3,307,877 28.406
Bond and Interest 661,192 4.980 879,649 7.554
Totals $ 4,766,240 35.897 $ 4,187,526 35.960
Certified levy amount is after HACA reduction
MINIM
law
MIMI
ammo
82
III.
STATISTICAL
SECTION
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
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
1997 4,400,087 1,366,602 1,751,226 697,934 439,263 145,062
1998 5,328,796 1,560,268 1,778,898 673,156 722,728 593,746
1999 5,237,554 1,771,069 1,958,169 628,070 647,163 233,083
2000 5,513,148 1,770,528 2,158,346 786,420 655,863 141,991
2001 5,808,265 1,871,615 2,246,146 868,289 663,360 158,855
83
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND REVENUES BY SOURCE
Last Ten Fiscal Years
(Unaudited)
Table 2
WEINIP
Total General
General Property Licenses Inter- Charges Fines
- Fiscal Fund Taxes and Governmental for and Other
Year Revenue Levied Permits Revenues Services Forfeits Revenue
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
1997 4,736,496 2,658,485 566,561 881,459 291,090 99,390 239,511
1998 5,722,363 2,904,888 726,599 1,380,063 347,485 102,489 260,839
- 1999 5,343,453 2,962,664 823,719 940,053 278,510 87,434 251,073
2000 5,613,395 3,306,057 884,746 702,606 272,145 124,458 323,383
2001 6,193,834 4,125,264 1,016,456 409,607 278,863 101,559 262,085
MON
Mom
limm
84
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
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%
1997 3,349,400 3,316,426 99.02% 23,962 3,340,388 99.73% 32,598 0.97%
1998 3,589,617 3,564,611 99.30% 30,186 3,594,797 100.14% 29,774 0.83%
1999 4,116,312 4,085,625 99.25% 23,876 4,109,501 99.83% 23,199 0.56%
2000 4,571,888 4,534,998 99.19% 19,452 4,554,450 99.62% 46,344 1.01%
2001 5,098,609 5,047,912 99.01% 40,513 5,088,425 99.80% 56,056 1.10%
Note: Does not include tax increment levies and collections.
Note: Current tax collections include State levy related credits (HACA).
85
CITY OF LINO LAKES, MINNESOTA
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
Last Ten Fiscal Years
(Unaudited)
Table 4
% of Current % of Total
Current Current Collections Delinquent Collections Total
- Fiscal Assmts. Assmts. to Assmts. Assessments Total to Current Outstanding
Year Due Collected Due Collected Collected Assmts. Due Del. Assmts.
1992 $ 379,521 $ 306,443 80.74% $ 82,664 $ 389,107 102.53% $ 118,690
_
1993 632,067 580,678 91.87% 39,313 619,991 98.09% 43,036
1994 387,200 355,543 91.82% 32,743 388,286 100.28% 36,497
1995 394,770 353,424 89.53% 26,051 379,475 96.13% 10,221
- 1996 366,146 355,609 97.12% 26,831 382,440 104.45% 21,040
1997 593,957 589,158 99.19% 20,153 609,311 102.59% 5,692
1998 664,912 657,041 98.82% 3,561 660,602 99.35% 12,019
- 1999 520,982 512,433 98.36% 8,429 520,862 99.98% 11,947
2000 503,922 434,857 86.29% 9,078 443,935 88.10% 7,919
2001 394,826 307,481 77.88% 5,614 313,095 79.30% 36,789
WIN
Note: Special assessments amounts above do not include prepayments
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 Fund to General
Year Principal Other Service (1) Expenditures (2) Expenditures
1992 $ 172,500 $ 114,821 $ 287,321 $ 2,552,835 10.42%
1993 177,500 108,276 285,776 2,829,202 10.10%
1994 282,500 96,268 378,768 3,169,862 11.95%
_
1995 228,500 96,135 324,635 3,557,038 9.12%
1996 188,000 100,248 288,248 3,966,738 7.27%
1997 188,000 106,785 294,785 4,400,087 6.70%
—
1998 190,000 112,201 302,201 5,328,796 5.67%
1999 295,734 387,500 683,234 5,237,554 13.04%
2000 273,570 318,507 592,077 5,513,148 10.74%
— 2001 472,050 322,503 794,553 5,808,265 13.68%
(1) Excludes tax increment, special assessment, enterprise, EDA bonds and payments on refunded bonds.
(2) Includes expenditures of General Fund only.
— Note: Amounts rounded to the nearest hundred.
CITY OF LINO LAKES, MINNESOTA
ASSESSED AND ESTIMATED ACTUAL VALUE
OF TAXABLE PROPERTY
Last Ten Fiscal Years
(Unaudited)
Taxes Real Personal Fiscal
Payable Property Property Total Disparities
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
1998 9,244,905 434,234 9,679,139 1,036,542
1999 9,649,657 393,365 10,043,022 917,989
2000 11,003,125 395,637 11,398,762 1,001,728
2001 12,635,731 393,728 13,029,459 1,157,165
Source: Anoka County Department of Property Records and Taxation.
88
II Me
Table 6
Tax Increment
Assessor's Estimated Ratio of Total
Net Taxable Market Value of Assessed to
Value Taxable Property Actual Value
$ (245,834) $ 5,485,908 $ 290,466,200 1.89%
(244,419) 5,577,922 320,714,400 1.74%
(256,841) 6,220,521 368,267,100 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%
(555,542) 10,160,139 627,423,800 1.62%
(646,438) 10,314,573 687,737,400 1.50%
(804,752) 11,595,738 775,398,200 1.50%
(912,580) 13,274,044 903,685,700 1.47%
CITY OF LINO LAKES, MINNESOTA
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
Last Ten Fiscal Years
(Unaudited)
Table 7
Tax Rates (Per $100 of Tax Capacity)
Year
Taxes
Payable City School (1) County Other (2) Total
1992 26.822 67.857 32.990 5.306 1 32.975
1993 29.386 60.589 32.779 6.510 129.264
1994 29.661 62.537 32.680 6.260 131.138
1995 30.772 64.308 32.765 6.977 134.822
1996 31.015 63.103 31.036 5.647 130.801
1997 31.167 66.000 30.542 5.197 132.906
1998 30.437 59.004 30.618 6.342 126.401
1999 36.039 64.802 32.265 6.830 139.936
2000 35.961 58.230 30.861 7.635 132.687
2001 35.898 69.888 28.859 6.903 141.548
(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.
Source: Anoka County Department of Property Records and Taxation.
90
_ 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
Less Net Bonded
Net Taxable Gross Cash and Debt to Net
Value of Bonded Investments Net Assessed Bonded Debt
Year Population (1) Property Debt (2) on Hand Bonded Debt Value Per Capita
1992 10,056 $ 5,485,908 $ 1,553,500 $ 121,842 $ 1,431,658 26.10% 142.37
1993 11,193 5,577,922 1,526,000 222,111 1,303,889 23.38% 116.49
—
1994 12,266 6,220,521 1,393,500 142,173 1,251,327 20.12% 102.02
1995 13,097 7,188,736 1,341,000 135,440 1,205,560 16.77% 92.05
1996 13,756 8,470,611 1,378,000 194,807 1,183,193 13.97% 86.01
1997 14,560 9,399,906 1,415,000 111,834 1,303,166 13.86% 89.50
1998 15,053 10,160,139 6,862,734 721,623 6,141,111 60.44% 407.97
— 1999 15,760 10,314,573 6,904,570 666,137 6,238,433 60.48% 395.84
2000 16,791 11,595,738 6,911,450 1,271,904 5,639,546 48.63% 335.87
—
2001 17,454 13,274,044 6,686,430 1,171,357 5,515,073 41.55% 315.98
(1) Population estimates provided from Metropolitan Council except 2000 is Federal Census and 2001 is City Estimate.
—
(2) Amount excludes tax increment, special assessment, enterprise and EDA bonds.
lamp
91
CITY OF LINO LAKES, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
INCLUDING DEBT RATIOS
December 31, 2001
(Unaudited)
Table 9
Overlapping Debt:
Bonded G.O. Percentage
Gross Bonded Debt Applicable City Share
Outstanding (1) in City(2) of Debt
Anoka County $ 103,700,000 5.89% $ 6,109,965
School District 12 72,935,000 46.84% 34,165,432
School District 624 41,765,000 3.16% 1,319,248
School District 831 50,550,000 6.78% 3,428,022
SISD 916 17,955,000 2.88% 517,877
Metropolitan Council 176,315,000 0.56% 979,331
Total Overlapping Debt
463,220,000 46,519,875
Direct Debt:
City of Lino Lakes 6,686,430 100.00% 6,686,430
Total Overlapping & Direct Debt $ 469,906,430 $ 53,206,305
Debt Ratios:
Ratio of Debt per capita (17,454 population) - overlapping $ 2,665
Ratio of Debt per capita (17,454 population) - direct $ 383
Ratio of Debt per capita (17,454 population) - total $ 3,048
Ratio of Debt to estimated market valuation of $872,182,400 6.10%
(1) Does not include general obligation debt supported by utility revenues, tax or aid anticipation certificates,
State -aid road or revenue debt.
(2) 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.
92
CITY OF LINO LAKES, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 2001
(Unaudited)
Table 10
Market Value
Debt Limit Percentage
Debt Limit
Total Bonded Debt
Less:
Special Assessment Bonds
Revenue Bonds - Enterprise Fund
Public Project Revenue Bonds
Total Debt Applicable to Debt Limit
II lime
Legal Debt Margin
Ilmm
Immo
illimm
93
2001
$ 903,685,700
2%
18,073,714
20,346,430
(10,195,000)
(3,465,000)
(6,035,000)
$ 651,430
$ 17,422,284
2000
$ 775,398,200
2%
15,507,964
24,416,450
(13,165,000)
(4,340,000)
(6,285,000)
626,450
$ 14,881,514
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF REVENUE BOND COVERAGE
WATER FUND
Last Ten Years
(Unaudited)
Table 11
Net Revenue
Available Interest
Fiscal Gross Operating for Debt and
Year Revenues (1) Expenses (2) Service Principal Fiscal Charges Total Coverage
1992 $ 232,586 $ 142,923 $ 89,663 $ $ 57,632 $ 57,632 1.56
1993 332,888 169,431 163,457 75,350 75,350 2.17
1994 394,245 149,764 244,481 25,000 66,080 91,080 2.68
1995 461,747 177,724 284,023 40,000 64,118 104,118 2.73
1996 466,310 210,778 255,532 50,000 170,881 220,881 1.16
1997 851,173 271,575 579,598 50,000 229,900 279,900 2.07
1998 598,005 237,866 360,139 140,000 225,182 365,182 0.99
1999 604,734 380,928 223,806 205,000 220,910 425,910 0.53
2000 1,039,331 495,183 544,148 210,000 237,612 447,612 1.22
2001 1,173,593 508,649 664,944 155,000 185,250 340,250 1.95
(1) Total Water Fund operating revenues and transfers in.
(2) Total Water Fund expenses exclusive of depreciation, interest on debt and fiscal charges.
94
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL TAXPAYERS
(Unaudited)
Table 12
Ten of the City's Largest Taxpayers Percent of
2000 Net Tax City's Net
lEms
Taxpayer Type of Business Capacity Tax Capacity
Northern States Power Utility $ 214,863 1.89%
Taylor Corp. Commercial/Industrial 164,417 1.44%
Rehbein & Winge Commercial/Industrial 126,470 1.11%
—
Gargaro, Nicholas & Deborah Commercial/Industrial 121,906 1.07%
Molin Concrete Products Commercial/Industrial 113,287 0.99%
Lino Lakes Business Center Commercial/Industrial 109,651 0.96%
F & G, Inc. Commercial/Industrial 104,818 0.92%
Northern Development LLC Commercial/Industrial 67,398 0.59%
Minnegasco, Inc. Utility 61,890 0.54%
Anoka Electric Cooperative Utility 59,544 0.52%
Total Ten Largest Taxpayers $ 1,144,244 10.03%
Source: Anoka County Department of Property Records and Taxation.
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)
1992 $ 290,466,200 615 $ 36,636,546 Not Available
1993 320,714,400 628 44,537,437 Not Available
1994 368,367,100 566 26,713,028 Not Available
1995 435,100,000 598 40,636,691 Not Available
1996 501,825,800 588 74,061,188 Not Available
1997 552,696,200 597 32,666,843 Not Available
1998 627,423,800 911 48,683,257 Not Available
1999 687,737,400 893 54,522,159 Not Available
2000 775,398,500 1,186 57,080,794 Not Available
2001 903,685,700 1,042 74,974,042 Not Available
(1) Assessor's estimated market value of taxable property from Table 6.
(2) Bank deposits are excluded due to the banks within the City being consolidated with banks outside the City.
As a result, local deposits are unavailable.
Source: City Inspection records.
96
CITY OF LINO LAKES, MINNESOTA
— DEMOGRAPHIC STATISTICS
Last Ten Years
(Unaudited)
Table 14
Fiscal School Number of Unemployment
Year Population (2) Enrollment (1) Households (2) Rate (3)
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 13,756 6,010 4,095 2.6%
—
1997 14,560 6,230 4,280 2.5%
— 1998 15,053 6,469 4,443 1.9%
1999 15,760 6,732 4,692 2.5%
—
2000 16,791 6,778 4,857 2.6%
2001 17,454 6,846 5,092 4.1%
■
(1) Centennial School District 12
(2) Metropolitan Council except 2000 is Federal Census and 2001 is City Estimate
— (3) Minnesota Department of Economic Security
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
5/11/1955
1/12/1982
Charter
33
17.4
28.5
99.20
Number of Street Lights 405
Fire Protection:
Centennial Fire District
Total Number of Stations
(within Lino Lakes)
Total Number of Volunteers
Police Protection:
Number of Stations
Number of sworn officers
Recreation:
Park Acreage
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:
Full-time
Part-time
Elections:
Registered voters - last general election
Number of votes cast
Percent of registered voters voting
98
3
1
51
1
21
166
21
14 miles
406,946,000
3,263
82.9
567
2 million
3,343
51.28
63
4
9,349
3,089
33%