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HomeMy WebLinkAboutComprehensive Annual Financial Report 12/31/1999SEM Mow alma IIIMIP MEN IMP limo tow COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF LINO LAKES, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 1999 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 Combined Statement of Revenue, Expenditures and Changes in Fund Balance - All Governmental Fund Types _ Combined Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual - General and Special Revenue Fund Types Combined Statement of Revenue, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Combined Statement of Cash Flows - All Proprietary Fund Types Notes to Financial Statements Statement 1 14 Statement 2 16 Statement 3 17 Statement 4 18 Statement 5 19 20 CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference Number Combining, Individual Fund and Account Group Financial Statements General Fund: Balance Sheet Statement 6 42 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Statement 7 43 Special Revenue Funds: Combining Balance Sheet Statement 8 49 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 9 50 Program Recreation — Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Statement 10 51 Debt Service Funds: Combining Balance Sheet Statement 11 52 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 12 54 Capital Project Funds: Combining Balance Sheet Statement 13 56 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 14 62 Enterprise Funds: Combining Balance Sheet Statement 15 68 Combining Statement of Revenue, Expenses and Changes in Retained Earnings Statement 16 69 Combining Statement of Cash Flows Statement 17 70 Agency Funds: Combining Balance Sheet Statement 18 71 Combining Statement of Changes in Assets and Liabilities Statement 19 72 Ow CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference Number General Fixed Asset Account Group: Schedule of General Fixed Assets - By Source Statement 20 73 Schedule of General Fixed Assets - By Function and Activity Statement 21 74 Schedule of Changes in General Fixed Assets - By Function and Activity Statement 22 75 General Long -Term Debt Account Group: Schedule of General Long -Term Debt Statement 23 76 Supplementary Financial Information Combined Schedule of Indebtedness Exhibit 1 77 Schedule of Deferred Tax Levies Exhibit 2 79 Debt Service Payments to Maturity - All Bonds Exhibit 3 80 Construction Work in Process Exhibit 4 82 Insurance in Force Exhibit 5 83 Taxable Valuations, Tax Levies and Tax Rates Exhibit 6 84 III. STATISTICAL SECTION General Fund: Expenditures By Function - Last Ten Fiscal Years _ Revenue By Source - Last Ten Fiscal Years Illms Vow Property Tax Levies and Collections - Last Ten Fiscal Years Special Assessment Levies and Collections - Last Ten Fiscal Years Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures - Last Ten Fiscal Years Assessed and Estimated Actual Value and Net Bonded Debt - Per Capita - Last Ten Fiscal Years Table 1 85 Table 2 86 Table 3 87 Table 4 88 Table 5 89 Table 6 90 CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Property Tax Rates - Direct and Overlapping Government - Last Ten Fiscal Years Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt Per Capita - Last Ten Fiscal Years Computation of Direct and Overlapping Debt including Debt Ratios Computation of Legal Debt Margin Schedule of Revenue Bond Coverage - Water Fund - Last Six Fiscal Years Principal Taxpayers Property Value, Construction Permits and Bank Deposits - Last Ten Fiscal Years Demographic Statistics Miscellaneous Statistics Page Reference Number Table 7 92 Table 8 93 Table 9 94 Table 10 95 Table 11 96 Table 12 97 Table 13 98 Table 14 99 Table 15 100 I. INTRODUCTORY SECTION CITY OF LINO LAKES, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 1999 Elected Officials Mayor: Kimberly Sullivan Council Members: Chris Lyden Andy Neal John Bergeson Caroline Dahl Term Expires December 31, 1999 December 31, 1999 December 31, 1999 December 31, 2001 December 31, 2001 Appointed Personnel — City Administrator Linda Waite Smith Director of Finance Alan Rolek (appointed 4 -3 -2000) Director of Public Safety David Pecchia — Director of Community Development Brian Wessel Director of Public Service Rick DeGardner Director of Administration Dan Tesch Accountant Paula Schloer Imo Public Services Mow City of Lino Lakes Organizational Chart Citizens Honorable Mayor and City Council Commissions Cable Parks and Recreation Economic Development Planning and Zoning Fin: Environmental City Administrator City Clerk Professional Consultants Engineering Attorney Fiscal 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 lnfonuation Systens Utility Billing MEM June 26, 2000 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, 1999. 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 Accountants, the State Auditor's Office, the State of Minnesota and the City Charter. The Comprehensive Annual Financial Report consists of three parts: a. An Introductory Section - contains the letter of transmittal, table of contents, elected and administrative officials and organizational chart. b. A Financial Section - contains the independent auditors report, notes to the financial statements, combined financial statements and the combining and individual fund and account group statements and supplemental schedules. c. A Statistical Section - contains various unaudited tables showing the financial trends of the City and miscellaneous statistics. 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. 600 Town Center Parkway, Lino Lakes, Minnesota 5 501 4 -11 82 Phone: 651- 982 -2400 • Fax: 651 -982 -2499 • TDD: 651 -982 -2410 Reliable financial information requires an establishment of accounting records that are adequately supported by internal accounting controls. The City believes that existing internal accounting controls are adequate to provide reasonable assurance that City assets are safeguarded against loss from unauthorized use or disposition and that the financial records are reliable for the preparation of the financial statements. The City Charter grants the City Council full authority over the financial matters of the City. The City Administrator has the responsibility of submitting the annual budget to the City Council. The budget is adopted by resolution and the amounts can not increase beyond the estimated receipts except to the extent that actual receipts exceed the estimate. THE REPORTING ENTITY In accordance with the Governmental Accounting Standards Board requirements, the financial reporting entity includes all funds and account groups of the City as well as all of its component units. Component units are legally separate entities for which the primary government is financially accountable. Blended component units, although legally separate entities, are in substance, part of the primary government' s operations and are included as part of the primary government. Accordingly, the Economic Development Authority is reported as a Special Revenue Fund of the primary government. The City provides a full range of municipal services. These services include: general government, public safety (police & fire), public works (streets & 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 within the County of Anoka. It covers an area of 33 square miles and has a population in excess of 15,000. Within the City's borders lies the 2,550 acre Rice Creek Chain of Lakes Regional Park. Access to St. Paul and Minneapolis is provided by I -35W and I -35E. The economic development effort established in 1993 by the city council has begun to reverse dependence on residential property taxes. Since 1993, the city has added more than $27 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 business park on Lake Drive near the Town Center is expected to be improved for development in 2000. 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. 4 Mow Nom 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. 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. The YMCA is anticipating building a new recreation facility in the near future. FINANCIAL INFORMATION The City's policy is to invest all available moneys at competitive rates in accordance with Minnesota law. Investments are made by minimizing credit and market risks while maintaining a competitive yield. Funds are invested in certificates of deposit, commercial paper and U.S. government agencies. Cash is pooled in one account to provide maximum return. General Fund The General Fund accounts for all revenues and expenditures necessary to provide basic governmental operations of the City. General Fund revenues totaled $5,343,453 in 1999 compared to $5,722,363 in 1998. The breakdown of revenues is shown in the following table: 1999 1998 $ Change % Change General property taxes $2,962,664 $2,904,888 $ 57,776 1.99% Licenses and permits 823,719 726,599 97,120 13.37% Intergovernmental revenues 940,053 1,380,063 (440,010) (31.88 %) Charges for services 278,510 347,485 (68,975) (19.85 %) Fines and forfeits 87,434 102,489 (15,055) (14.69 %) Interest on Investments 27,655 137,410 (109,755) (79.87 %) Miscellaneous 223,418 123,429 99,989 81.01% Total $5,343,453 $5,722,363 $(378,910) (6.62 %) The increase in General property taxes was due to the increase in the tax base of the City. Licenses and permits increased substantially due to additional building permits issued new housing units and improvements made to the Lino Lakes Correctional Facility. Intergovernmental revenues decreased substantially in 1999. Storm related costs incurred in 1998 were reimbursed to the City through Federal and State disaster aids, causing a one -year increase in intergovernmental revenue in that year. Fines and forfeitures decreased due to fewer citations being issued for traffic violations. Miscellaneous revenue increased due to the sale of the former police facility and greater than expected tree refunds. Investment earnings were greatly reduced in 1999 due to a changing interest rate environment. In accordance with GASB 31, which requires investments be carried at fair market value, and the recording of unrealized losses had a substantial negative impact on interest revenue for the year. General fund expenditures totaled $5,237,554 in 1999 compared to $5,328,796 in 1998. The breakdown of expenditures is shown in the following table. 1999 1998 $ Change % Change General Government $1,771,069 $1,560,268 $210,801 13.51% Public Safety 1,958,169 1,778,898 179,271 10.08% Public Works 628,070 673,156 (45,086) (6.70 %) Parks and Recreation 647,163 722,728 (75,565) (10.46 %) Conservation of Natural Resources 233,083 593,746 (360,663) (60.74 %) Total $5,237,554 $5.328,796 $91,242 1.71% The increase in General Government is attributed greatly to contractual and capital outlay costs related to building and furnishing the new civic complex. Public safety increased mainly due to the addition of two new police officer positions and other personnel changes, and increased fire contract costs. Public Works costs were lower in 1999 due to lower contractual costs for street repair. Parks and recreation expenses decreased due to reduced capital outlay expenditures for park equipment and trails from the previous year. Costs incurred for storm cleanup in 1998 inflated the expenditures in the area of Conservation of Natural Resources; therefore, costs in this area were much reduced in 1999. Settlement of contracts for all four of the City's collective bargaining units resulted in increased personnel costs, which had an impact on all city functions. The fund balance of the General fund continues to grow as shown below: Expenditure Fund Balance Percent Budget Beginning of Year of Budget 1990 $2,155,051 $1,030,053 47.80% 1991 2,268,639 1,169,624 51.56% 1992 2,552,835 1,265,236 49.56% 1993 2,829,202 1,406,296 49.71% 1994 3,169,862 1,756,659 55.42% 1995 3,551,957 1,870,934 52.67% 1996 3,966,738 2,086,231 52.59% 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% 6 The fund balance for the year increased $23,142 for a total ending fund balance of $3,434,474. Special Revenue Funds Economic Development Authority - this fund accounts for personal expenses of the City Council when acting as the Economic Development Authority. Community Development Block Grant - accounts for expenditures associated with funds allocated through Anoka County from the Federal Government to fund allowable projects. Program Recreation - this fund accounts for the activities of the Recreation Department for self- supporting programs. Debt Service Funds Improvement Bonds - these funds account for debt service payments made on general obligation debt issued for local improvement projects. Certificates of Indebtedness - these funds account for debt service payments made on debt issued to finance capital purchases. These certificates are financed internally. Public Project Revenue Bonds - established to account for debt service payments related to the construction of the City's fire hall and civic complex. Capital Project Funds Closed Bond Fund - established to account for all excess bond receipts. Dedicated Parks - accounts for revenues and expenditures for the acquisition and construction of park projects. Land for an Athletic Complex was purchased in 1999 at a cost of $925,000. Area and Unit Charges - accounts for water and sewer area assessments to be used for the construction of City utility infrastructure. Surface Water Management - established to help fund the costs associated with surface water issues and planning. Town Center /Civic Center Project - 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 - established to account for projects financed with tax increments. Enterprise Funds Water Fund - accounts for the operations of the municipal water system. The following table illustrates the operations: Operating Revenues Operating Expenses (Excluding Depreciation) 1999 1998 $ Change % Change $555,368 $586,306 ($30,938) (5.28 %) 380,928 237,866 143,062 60.14% Operating Income (Loss) $174,440 $348,440 ($112,124) (32.18 %) Water revenues decreased due to a wetter than normal summer resulting in reduced water consumption. Installation of a telephone meter reading system caused increases in personnel, supply and contractual costs over the previous year. Sewer Fund - accounts for the operations of the municipal sanitary sewer system. The following table illustrates the operations: 1999 1998 $ Change % Change Operating Revenues $713,523 $719,391 ($5,868) (0.82 %) Operating Expenses 549,162 652,015 (102,853) (15.77 %) (Excluding Deprecation) Operating Income (Loss) $164,361 $67,376 $96,985 161.36% Although Metropolitan Council Environmental Services charges for sewage treatment increased, and personnel costs were higher, costs for system maintenance and repair were substantially lower in 1999, resulting in an overall reduction in expenses from the previous year. AGENCY FUNDS Contractors Deposits - accounts for the pass- through costs of developer financed projects within the City. Pending Assessments - accounts for the receipt of assessment prepayments prior to certification. This fund is closed annually at certification time. The balance in this fund is the result of assessments being collected that will not be certified to Anoka County until 2000. 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 1999 was $245,589 compared to $1,155,931 in 1998. The decrease in interest income resulted from changing market conditions and unrealized losses booked as a result of decreased market value of securities held, in compliance with GASB 31. 8 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. Imm CASH MANAGEMENT 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 $6,904,570 of general obligation bonds and equipment certificates, $14,045,000 of general obligation improvement bonds with special assessments pledged and $4,550,000 of revenue bonds. The City also had contracts for deed in the amount of $1,459,352. During 1999, the City issued $307,570 of equipment certificates internally, the proceeds of which were used to purchase equipment. Also, during the year the City's Economic Development Authority issued $980,000 in public project revenue refunding bonds which refunded the public project revenue bonds series 1990A. The City also issued $1,725,000 in general obligation improvement refunding bonds and $680,000 in general obligation water utility revenue refunding bonds to advance refund the general obligation improvement bonds series 1992A and the general obligation water utility revenue bonds series 1992B, respectively. 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 selected by the City Council to perform the audit. In addition to meeting the requirements of the Federal Single Audit Act of 1984 and the related U.S Office of Management and Budget's Circular A-133. 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. 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 single audit report. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers Association of the United State and Canada (GFOA) awards the Certificate of Achievement for excellence in financial reporting to cities that meet certain criteria. A governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, the contents of which conform to program requirements. The City. of Lino Lakes received this award for the year ended December 31, 1998. The City is submitting the 1999 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, 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, 1998 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 lam Now LarsonAllen- W e i s h a i r & Co., L L P ACHIEVE THE DESIRED EFFECT- Business Consultants v Certified Public Accountants INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council City of Lino Lakes, Minnesota 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, 1999 as listed in the Table of Contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and 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, 1999, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated June 14, 2000 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. 12 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 supplementary financial information and statistical tables, shown on pages 77 -100, 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 emm statements taken as a whole. St. Paul, Minnesota June 14, 2000 13 atbk, Xvmette4; Ira '1•411P LARSON, ALLEN, WEISHAIR & CO., LLP GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF LINO LAKES, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES, ACCOUNT GROUPS December 31, 1999 Governmental Fund Types Special Debt Capital Assets General Revenue Service Project Cash and investments $ 3,150,236 $ 41,031 $ 1,611,598 $ 5,368,066 Cash and investments with escrow agent - - 2,188,920 2,571 Accrued interest receivable - 22,727 10 Accounts receivable 167,249 412 16,805 Deposits receivable - - Due from other governmental units 336,636 1,230 Interfund receivable - - 6,024,110 Taxes receivable: Delinquent 19,206 3,993 Due from County 50,411 10,413 13,238 Delinquent tax increment - - 5,848 Special assessments receivable: Delinquent 2,973 5,920 Deferred 1,347,884 3,222,475 Due from County - 2,413 3,452 Prepaid items 115,359 - - 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 Liabilities, equity and other credits $ 3,839,097 $ 42,261 $ 5,191,333 $ 15,652,001 Liabilities: Interfund payable $ - $ 2,754 $ 18,380 $ 5,876,494 Accounts payable 157,838 3,987 - 860,422 Salaries payable 211,597 1,559 Retainage payable 1,225 - 350,436 Accrued interest payable - Deposits payable - Due to other governmental units 9,429 - - Deferred revenue 24,534 1,354,850 3,234,243 Bonds payable - - Contract for deed payable Compensated absences payable Total liabilities 404,623 8,300 1,373,230 10,321,595 Equity and other credits: Contributed capital Invested in general fixed assets Retained earnings - unreserved Fund balance (deficit): Reserved 115,359 3,824,337 989,506 Unreserved: Designated 3,319,115 35,485 9,849,952 Undesignated - (1,524) (6,234) (5,509,052) Total equity and other credits 3,434,474 33,961 3,818,103 5,330,406 Total liabilities, equity and other credits $ 3,839,097 $ 42,261 $ 5,191,333 $ 15,652,001 The accompanying notes are an integral part of these financial statements. 14 Statement 1 Proprietary Fiduciary Account Groups Totals Fund Type Fund Type General General Long (Memorandum Only) Enterprise Agency Fixed Assets Term Debt 1999 1998 $ 804,086 $ 466,564 � 652,895 8,321 127,024 205,576 3,054 306,811 1,541 4,750 26,075,620 $ 28,062,654 10,520 11,690,618 $ 604108 $ 11,690,618 � 3,818,103 18,853,001 $ 22,671,104 $ 11,441,581 $ 14,630,585 2,844,386 5,456,009 158,082 166,278 390,042 421.827 10.520 115,319 337,866 I29/693 6.024'110 3,205.002 2I199 29,774 74,062 107,555 5,848 13,430 11,947 12,019 4,877170 4,317,543 7,406 110,415 120,109 135,495 989,506 989,506 37,766,238 27,269,318 3,818`103 1.989,218 18,853,001 19,176,780 $ 87,753,176 $ 78,475,855 $ - $ 120,482 $ $ $ 0,024.110 $ 3,205,002 43,047 50,040 1.115,334 1.800,050 12,583 - 225,739 89,584 - 351,661 423,255 99.086 - - 99,086 92,724 427,586 427,586 407.329 3.609 - 1I038 227,733 ' 4.01].6]7 4.084.502 4,550,000 20.949.570 25,499,570 24.152.734 - 1/459.352 1,459,352 859.352 }2,2)7 262.182 274,399 241.130 4,720,542 604,108 22,671,104 40,103,502 35,583,395 22,389,099 - 22,389,099 18,190,064 - 11,690,618 11,690/518 5.333,378 953,013 - 953,013 841,745 ' 4.929,202 3,078,390 13,204.552 17,479.573 (5,516810) (2,030,690) 23,342,112 11,690,618 47,649,674 42,892,460 $ 28,062,654 $ 604.108 $ 11,690,618 $ 22,671,104 $ 87,753,176 $ 78,475,855 15 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, 1999 Statement 2 Totals Special Debt Capital (Memorandum Only) Revenue: General Revenue Service Project 1999 1998 General property taxes $ 2,962,664 $ - $ 772,234 $ $ 3,734,898 $ 3,183,756 Tax increments - - 837,036 837,036 660,943 Licenses and permits 823,719 - 823,719 726,599 Intergovernmental 940,053 20,604 87,068 1,047,725 2,411,186 Special assessments - - 911,271 1,608,327 2,519,598 2,973,299 Charges for services 278,510 164,555 - 119,294 562,359 651,041 Fines and forfeits 87,434 87,434 102,489 Investment earnings 27,655 671 56,904 145,691 230,921 1,119,621 Refunds and reimbursements 74,095 44,960 119,055 80,638 Miscellaneous 149,323 112,500 91,731 353,554 240,581 Total revenue 5,343,453 185,830 1,939,977 2,847,039 10,316,299 12,150,153 Expenditures: Current: General government 1,632,349 22,163 989,693 2,644,205 2,512,284 Public safety 1,951,820 - 1,951,820 1,778,863 Public works 626,533 - 1,392 627,925 673,156 Parks and recreation 597,375 157,840 - 755,215 663,566 Conservation of natural resources 218,981 - 218,981 561,160 Capital outlay: General government 138,720 5,250 143,970 53,117 Public safety 6,349 173,149 179,498 153,370 Public works 1,537 - 100,369 101,906 70,727 Parks and recreation 49,788 9,086 1,078,266 1,137,140 313,560 Conservation of natural resources 14,102 - - 14,102 32,586 Debt service: Principal 1,190,734 1,190,734 740,000 Interest and fiscal charges 1,029,874 1,029,874 527,782 Refunding bond issuance costs 46,205 46,205 Construction /acquisition - 8,775,128 8,775,128 12,468,230 Total expenditures 5,237,554 189,089 2,266,813 11,123,247 18,816,703 20,548,401 Revenue over (under) expenditures 105,899 (3,259) (326,836) (8,276,208) (8,500,404) (8,398,248) Other financing sources (uses): Operating transfer in 155,783 423,850 368,664 948,297 2,312,920 Operating transfer out (238,540) - - (759,123) (997,663) (2,150,161) Contract for deed proceeds - 600,000 600,000 - Bond proceeds 2,692,969 307,570 3,000,539 11,806,000 Payment to refunding bond escrow (961,098) - (961,098) Total other financing sources (uses) (82,757) 2,155,721 517,111 2,590,075 11,968,759 Net increase (decrease) in fund balance 23,142 (3,259) 1,828,885 (7,759,097) (5,910,329) 3,570,511 Fund balance Beginning of year, as previously stated 3,411,332 37,220 1,989,218 13,089,503 18,527,273 15,038,819 Prior period adjustment - - - (82,057) Beginning of year, as restated 3,411,332 37,220 1,989,218 13,089,503 18,527,273 14,956,762 Residual equity transfer in - - - 815,507 Residual equity transfer out - (815,507) Fund balance - December 31 $ 3,434,474 $ 33,961 $ 3,818,103 $5,330,406 $ 12,616,944 $ 18,527,273 The accompanying notes are an integral part of these financial statements. 16 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, 1999 11111111■11111=111111111■111111111■111111•11=11111111111=111111111■1111111=111111111111=11111 Budget Statement 3 Special Revenue Fund - General Program Recreation Over Over (Under) (Under) Actual Budget Budget Actual Budget Revenue: General property taxes $ 2,952,261 $ 2,962,664 $ 10,403 Licenses and permits 642,243 823,719 181,476 Intergovernmental 670,926 940,053 269,127 - Charges for services 365,349 278,510 (86,839) 138,306 164,555 26,249 Fines and forfeits 100,000 87,434 (12,566) - Investment earnings 65,000 27,655 (37,345) 661 661 Refunds and reimbursements 40,000 74,095 34,095 Miscellaneous 84,000 149,323 65,323 - Total revenue 4,919,779 5,343,453 423,674 138,306 165,216 26,910 Expenditures: Current: General government 1,586,683 1,632,349 45,666 Public safety 1,979,334 1,951,820 (27,514) Public works 723,695 626,533 (97,162) - Parks and recreation 594,205 597,375 3,170 109,975 157,840 47,865 Conservation of natural resources 140,770 218,981 78,211 - Capital outlay: General government 139,463 138,720 (743) Public safety 6,349 6,349 - Public works 1,537 1,537 - Parks and recreation 65,824 49,788 (16,036) 5,788 9,086 3,298 Conservation of natural resources 22,500 14,102 (8,398) - Total expenditures 5,252,474 5,237,554 (14,920) 115,763 166,926 51,163 Revenue over (under) expenditures (332,695) 105,899 438,594 22,543 (1,710) (24,253) Other financing sources (uses): Operating transfers from other funds Operating transfers to other funds 155,783 155,783 (238,540) (238,540) Net increase (decrease )in fund balance $ (176,912) 23,142 $ 200,054 $ 22,543 (1,710) $ (24,253) Fund balance Beginning balance Fund balance - December 31 3,411,332 $ 3,434,474 The accompanying notes are an integral part of these financial statements. 17 37,195 $ 35,485 CITY OF LINO LAKES, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENSES AND AND CHANGES IN RETAINED EARNING - ALL PROPRIETARY FUND TYPES For The Year Ended December 31, 1999 Statement 4 Enterprise Funds 1999 1998 Operating revenue: Water sales $ 453,092 $ 519,505 Sewer charges 679,020 668,779 Other operating revenue 136,779 117,413 Total operating revenue 1,268,891 1,305,697 Operating expenses: Personal services 238,667 176,155 Materials and supplies 137,852 78,145 Contractual services 98,557 46,270 Repair and maintenance 1,568 180,012 MCES sewer charges 368,937 326,619 Depreciation: Purchased assets 102,777 52,061 Contributed assets 412,573 322,807 Utilities 71,367 77,328 Other 13,142 5,352 Total operating expenses 1,445,440 1,264,749 Net income (loss) from operations (176,549) 40,948 Other income (expense): Investment earnings 14,668 36,310 Special assessments 42,010 566 Loss on disposal of assets (2,375) Bond interest (228,000) (223,582) Paying agent fees (2,800) (1,600) Total other income (expense) (174,122) (190,681) Net income (loss) before operating transfers (350,671) (149,733) Operating transfers: Operating transfer from General Fund 49,366 17,241 Operating transfer to Capital Project Fund - (180,000) Total operating transfers 49,366 (162,759) Net income (loss) (301,305) (312,492) Credit arising from transfer of depreciation to contributions from property owners 412,573 322,807 Retained earnings Beginning balance, as previously stated 841,745 1,492,588 Prior period adjustment - (5,875) Beginning balance as restated 841,745 1,486,713 Residual equity transfer to Sewer Fund (655,283) Retained earnings - December 31 $ 953,013 $ 841,745 The accompanying notes are an integral part of these financial statements. 18 CITY OF LINO LAKES, MINNESOTA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES For the Year Ended December 31, 1999 Statement 5 Enterprise Funds 1999 1998 Cash flows from operating activities: Operating income $ (176,549) $ 40,948 Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation 515,350 374,868 Change in assets and liabilities: Decrease (increase) in receivables 42,116 118,002 Decrease (increase) in prepaid items 31,079 (3,233) Increase (decrease) in payables 29,498 (181,222) Net cash flows from operating activities 441,494 349,363 Cash flows from noncapital financing activities: - Operating transfer from General Fund Operating transfer to Capital Project Funds Net cash flows from noncapital financing activities 49,366 49,366 17,241 (180,000) (162,759) Cash flows from capital and related financing activities: Principal paid on revenue bonds (205,000) (140,000) Proceeds from issuance of refunding bonds 680,000 Investment with escrow agent (652,895) - Collection of special assessments 42,010 35,245 — Interest and paying agent fees on revenue bonds (230,800) (225,182) Acquisition of fixed assets (43,423) (78,933) Net cash flows from capital and related financing activities (410,108) (408,870) Cash flows from investing activities: Prior period adjustment to Fair Values • Investment earnings Net cash flows from investing activities 14,668 14,668 (5,875) 36,310 30,435 Net increase (decrease) in cash and cash equivalents 95,420 (191,831) Cash and cash equivalents - January 1 708,666 900,497 Cash and cash equivalents - December 31 $ 804,086 $ 708,666 ▪ Noncash investing, capital and financing activities: - Water and Sewer lines in the amount of $4,611,608 and $3,357,813 were contributed to the Water and Sewer Fund in 1999 and 1998 respectively. - The Water Fund contributed $655,283 in assets to the Sewer Fund in 1998. This transaction was recorded as a residual equity transfer out of the Water Fund and an addition to contributed capital in the Sewer Fund. The accompanying notes are an integral part of these financial statements. 19 Now CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Lino Lakes is a public corporation formed under Minnesota Statute 410. As such, the City is under home rule charter regulations and applicable statutory guidelines. The financial statements of the City of Lino Lakes have been prepared in conformity with generally accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies: A. FINANCIAL REPORTING ENTITY As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the City of Lino Lakes and its component units. 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 financial 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 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, 1999 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. 21 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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 $4,613,627, which consists of the following: Oak Wilt Suppression and misc. $ 5,328 Property taxes receivable 29,047 Special assessments receivable 4,579,252 Total $ 4,613,627 22 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. BUDGETS Budgets are adopted on a basis consistent with 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: Special Revenue Funds Governmental Fund: Fund Balance — Budgetary Basis $ 35,485 Fund Balances — Non- Budgeted Funds (deficit) (1,524) Fund Balances — GAAP Basis $ 33,961 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 cornments. 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. 23 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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. 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. H. LOCAL GOVERNMENT AID REVENUE RECOGNITION Local government aid is provided to the City by the State as a shared tax based upon a statutory formula and without restrictions. Payment from the State is generally received during each calendar year for that calendar year. The City recognizes local government aid revenue when it becomes both measurable and available to finance current operations. In practice, local government aid is recognized as revenue as it is received in cash. 24 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County in December (levy /assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 15 and December 15 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and the following January are recognized as revenue for the current year. Taxes 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 1999 and 1998 totaled $478,347 and $498,572, respectively. Receipt of property taxes from this "fiscal disparities pool" does not increase or decrease total tax revenue. J. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments are collected by the County and remitted by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funding are completely offset by deferred revenues. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of delinquent special assessments. Generally, the City will collect the full amount of its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. 25 Omm CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. INVENTORIES The original cost of materials and supplies has been recorded as expenditures /expenses at the time of purchase of both the Governmental and Proprietary Funds. These funds do not maintain material amounts of materials and supplies. 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. City policy is to finance these assets by the sources indicated rather than by user charges. Accordingly, the water and sewer user rates are not established at levels sufficient to cover depreciation on these assets. Depreciation on these assets is shown in the operating statements; however, the depreciation is eventually transferred against the contribution account rather than retained earnings in accordance with generally accepted accounting principles. Consequently, the contribution account reflects the net book value of contributed assets rather than the original cost of such assets. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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, 1999, 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 in 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 in the General Long -Term Debt Account Group. Long -term liabilities expected to be financed from proprietary fund operations are accounted for in those funds. 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 in the fund that is reimbursed. All other interfund transactions, except quasi - external transactions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. 27 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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 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 $ (93,113) and the bank balance was $193,194. The entire bank balance was covered by Federal depository insurance or by collateral held by the City's agent in the City's name. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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 in 270 days or less. f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker - dealers; or, a bank qualified as a depositor. Cash and Investment balances as of December 31, 1999 are as follows: Custodial Credit Risk Category Security Type 1 2 3 Fair Value U.S. Government & Agency Securities $ 9,550,523 $ - $ - $ 9,550,523 Repurchase Agreement 300,179 300,179 Treasury Bonds 302,376 - 302,376 Municipal Bonds 574,570 574,570 Negotiable Certificates of Deposit 756,000 756,000 Totals $ 11,183,469 $ - $ 300,179 11,483,648 Investment not subject to categorization: Mutual Funds 1,046,274 U.S. Government Securities Pooled Investment 1,814,004 (pool value is Fair Value) Money Market Funds 34,382 Total Investments 14,378,967 Deposits (93,113) Cash on Hand 772 Total Depsits, Investments and cash on hand $ 14,285,967 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 29 11,441,581 2,844,386 14,285,967 Umw INNoi CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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, the G.O. Improvement Refunding Bonds of 1999A, the G.O. Water Revenue Refunding bonds of 1999B 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 1/1/99 $ 1,097,476 1,746,068 355,603 635,435 952,881 545,915 $ 5,333,378 Additions $ 1,140,279 4,757,699 436,657 68,602 206,433 4,061 6,613,731 Balance Deletions 12/31/99 $ 29,000 $ 2,208,755 85,000 6,418,767 2,509 789,751 -0- 704,037 139,982 1,019,332 -0- 549,976 256,491 $ 11,690,618 A summary of Proprietary Fund fixed assets at December 31, 1999 is as follows: Building and Structures Machinery and Equipment Water and Sewer Lines Total Less: Accumulated Depreciation Net Fixed Assets Water Sewer Total $ 48,690 $ -0- $ 48,690 117,299 135,102 252,401 13,562,557 15,279,729 28,842,286 13,728,546 15,414,831 29,143,377 (1,371,283) (1,696,474) (3,067,757) 12,357,263 13,718,357 $ 26,075,620 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 4 CITY INDEBTEDNESS The following is a schedule of changes in City indebtedness for the year ended December 31, 1999: Balance Balance 1/1/99 Additions Deletions 12/31/99 General Long Term Debt Account Group: Bonded debt: General obligation $ 6,862,734 $ 1,287,570 $ 1,245,734 $ 6,904,570 Special assessment 13,215,000 1,725,000 895,000 14,045,000 — Contracts for deed payable 859,352 600,000 1,459,352 Compensated absences payable - net 228,912 33,270 262,182 Total general long term debt 21,165,998 3,645,840 Proprietary Fund: Revenue bond 4,075,000 Compensated absences -net 12,217 Total $ 25,253,215 680,000 2,140,734 205,000 $ 4,325,840 $ 2,345,734 22,671,104 _ 4,550,000 _ 12,217 $ 27,233,321 All long -term bonded indebtedness outstanding at December 31, 1999 is backed by the full faith and credit of the City, including special assessment bond issues. Delinquent special assessments receivable at December 31, 1999 totaled $11,947. The annual requirement to amortize all debt outstanding at December 31, 1999 including interest payments of $9,044,994 is as follows: 2000 2001 2002 General Obligation Bonds $ 679,370 $ 773,360 $ 664,228 S Special Assessment Bonds 1,546,596 3,533,814 1,756,950 Revenue Bonds 446,624 1,081,551 418,564 2003 2004 and on 558,689 $ 1,531,236 412,189 7,935,343 $ 9,452,414 3,753,636 Total $ 2,672,590 $ 5,388,725 $ 2,839,742 $ 2,502,114 $ 21,141,393 $ Total 10,610,990 17,821,010 6,112,564 34,544,564 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. 31 MINIM CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 4 CITY INDEBTEDNESS (CONTINUED) City indebtedness at December 31, 1999 is composed of the following: Final Issue Maturity Interest Original Date Date Rate Issue Payable 12/31/99 General Obligation Bonds: 1997 Equipment Certificates 2/1/97 12/31/00 6.00% 225,000 75,000 1998 Equipment Certificates 2/1/98 12/31/01 6.00% 287,734 192,000 Mow 1999 Equipment Certificates 2/1/99 12/31/02 6.00% 307,570 307,570 Civic Complex Lease Rev. Bonds - 98A 8/1/98 2/1/19 4.20 %5.35% 5,350,000 5,350,000 Public Project Revenue Ref. Bonds - 99C 9/1/99 2/1/10 4.75%-5.10% 980,000 980,000 Total General Obligation Bonds 7,150,304 6,904,570 Special Assessment Bonds: G.O. Improvement Refunding Bonds, 4/1/92 2/1/06 4.00%-6.70% 3,640,000 2,250,000 Series 1992A G.O. Improvement Refunding Bonds, 10/1/96 2/1/07 4.20 %5.20% 4,685,000 3,760,000 Series 1996A G.O. Improvement Refunding Bonds, 8/1/98 2/1/15 4.50%-4.90% 4,310,000 4,310,000 Serie 1998A G.O. Improvement Refunding Bonds, 8/1/98 2/1/15 4.50%-4.90% 2,000,000 2,000,000 Series 1998B G.O. Improvement Refunding Bonds, 9/1/99 2/1/06 4.25%-4.70% 1,725,000 1,725,000 Series 1999A Total Special Assessment Bonds 16,360,000 14,045,000 Revenue Bonds: G.O. Water Revenue Bonds, 4/1/92 2/1/08 4.50 %6.80% 1,060,000 785,000 — Series 1992B G.O. Water Revenue Bonds, 10/1/96 2/1/12 4.10%-5.70% 3,320,000 3,085,000 Series 1996B G.O. Water Revenue Bonds, 9/1/99 2/1/08 4.25%-4.90% 680,000 680,000 Series 1999B Total Revenue Bonds 5,060,000 4,550,000 Total - All Bonds 28,570,304 25,499,570 Contract for Deed Payable 4/30/97 2/1/02 8.00% 511,714 511,714 Contract for Deed Payable 12/1/97 12/1/02 8.00% 347,638 347,638 Contract for Deed Payable 12/21/99 12/1/02 6.00% 600,000 600,000 Total Contracts for Deed 1,459,352 1,459,352 — Compensated Absences Payable N/A 274,399 Total Indebtedness $ 30,029,656 $ 27,233,321 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. 32 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 4 CITY INDEBTEDNESS (CONTINUED) Public Project Revenue Bonds and Civic Complex Lease Revenue I3onds — 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 in 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 December 1, 2002. Such payments are then applied first to interest accrued since the last payment date and then to the principal balance. The third contract for deed bears interest at 6 %, this contract calls for payments over the next three years. 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. Refunded Bonds General Obligation Improvement Refunding Bonds, Series 1992A — In 1999, the City issued General Obligation Improvement Refunding Bonds, Series 1999A to advance refund the G.O. Improvement Refunding Bonds, Series 1992A in a crossover refunding pursuant to Minnesota Statutes § 475.67, Subd.13. The proceeds of the 1999A issue were placed into an irrevocable trust fund to provide or the future debt service of the 1992A bonds. Debt service on the series 1999A bonds will be paid from the trust fund through February 1, 2001 and the City will pay debt service thereafter. The City will continue to pay debt service on the 1992A bonds through February 1, 2001. The call date is February 1, 2001, at which time the trust fund will pay the 1992A bonds with maturity dates after February 1, 2002. As a result of the advance refunding, the City achieved a debt service savings of $54,542 on a present value basis using the yield of the bonds as the discount factor. The trust account assets and the liability for the bonds are included in the City's financial statements until defeasance occurs. General Obligation Water Revenue Refunding Bonds, Series 1992B — In 1999, the City issued General Obligation Improvement Refunding Bonds, Series 1999B to advance refund the G.O. Improvement Refunding Bonds, Series 1992B in a crossover refunding pursuant to Minnesota Statutes § 475.67, Subd.13. The proceeds of the 1999B issue were placed into an irrevocable trust fund to provide or the future debt service of the 1992B bonds. Debt service on the series 1999B bonds will be paid from the trust fund through February 1, 2001 and the City will pay debt service thereafter. The City will continue to pay debt service on the 1992B bonds through February 1, 2001. The call date is February 1, 2001, at which time the trust fund will pay the 1992B bonds with maturity dates after February 1, 2002. As a result of the advance refunding, the City achieved a debt service savings of $20,774 on a present value basis using the yield of the bonds as the discount factor. The trust account assets and the liability for the bonds are included in the City's financial statements until defeasance occurs. 33 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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 1999 and 1998 is computed as follows: Market value Applicable percentage Debt Limit Amount of debt applicable to debt limit: Total bonded debt Less: Special assessment bonds Public project revenue bonds Cash and investment in Debt Service Funds Revenue bonds Total debt applicable to debt limit Legal debt margin December 31, 1999 1998 687,737,400 627,423,800 2 % 2 % 13,754,748 12,548,476 25,499,570 (14,045,000) (6,330,000) (29,726) (4,550,000) 544,844 13,209,904 Note 6 DEFINED BENEFIT PENSION PLANS - STATEWIDE A. PLAN DESCRIPTION 24,152,734 (13,215,000) (6,350,000) (8,893) (4,075,000) 503,841 12,044,635 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 who retired before July 1, 1997 is 2 percent of average salary for each of the first 10 years of services and 2.5 percent for each remaining year. The annuity accrual rate for Basic members who retire on or after July 1, 1997 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 who retired before July 1, 1997, the annuity accrual rate is 1 percent of average salary for each of the first 10 years and 1.5 percent for each remaining year. For Coordinated members who retire on or after July 1, 1997, the annuity accrual 34 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 6 DEFINED BENEFIT PENSION PLANS — STATEWIDE (CONTINUED) rate increases by 0.2 percent (to 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year). Under Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic Plan members and 1.5 percent for Coordinated Plan members who retired before July 1, 1997. Annuity accrual rates increase 0.2 percent for members who retire on or after July 1, 1997. For PEPFF members, the annuity accrual rate is 2.65 percent for each year of service for members retiring before July 1, 1997. Effective July 1, 1997, the annuity accrual rate is increased to 3.0 percent. For all PEPFF members and for PERF members whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree - -no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA, 514 St. Peter Street #200, St. Paul, Minnesota, 55102 or by calling (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 7.60% 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 11.40% for PEPFF members. The City's contributions for the years ending June 30, 1999, 1998, and 1997 were $175,126, $183,662, and $149,261, respectively, equal to the contractually required contributions for each year as set by state statute. 35 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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. NNW Note 8 RECONCILIATION OF CONTRIBUTED CAPITAL Changes to contributed capital during the year are as follows: Water Sewer Total Beginning Balance $ 7,298,120 10,891,944 $ 18,190,064 Note 9 SEGMENT INFORMATION Capital Contributions $ 1,627,968 2,983,640 $ 4,611,608 Depreciation on Contributed Assets $ (165,445) (247,128) $ (412,573) Ending Balance $ 8,760,643 13.628,456 $ 22,389,099 The City actively maintains two Enterprise Funds which provide water and sanitary sewer services. Segment information for the year ended December 31, 1999 is as follows: Water Utility Operating revenue $ 555,368 Depreciation expense 256,844 Operating income (loss) (82,404) Property, plant and equipment additions 1,630,627 Capital Contributions 1,627,968 Net income (loss) (213,088) Operating transfers in (out) 49,366 Net property, plant and equipment 12,357,263 Net working capital 574,561 Total assets 13,600,698 Bonds payable 4,550,000 Total equity 8,893,242 Sewer Totals Utility 1999 1998 $ 713,523 $ 1,268,891 $ 1,305,697 258,506 515,350 374,868 (94,145) (176,549) 40,948 3,024,404 2,983,640 (88,217) 13,718,357 734,283 14,461,956 14,448,870 4,655,031 4,611,608 (301,305) 49,366 26,075,620 1,308,844 28,062,654 4,550,000 23,342,112 3,436,747 4,013,096 (312,492) (162,759) 21,935,940 682,550 23,247,854 4,075,000 19,031,809 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 10 DEFICIT FUND BALANCES The City has deficit fund balances at December 31, 1999 as follows: Special Revenue Funds: Economic Development Fund Community Development Block Grant Debt Service Funds: Public Project Refunding Bonds of 1999C Capital Project Funds: Dedicated Parks MSA Construction 1994 Construction 1997 Construction 1998 Construction Town Center Project General Tax Increment Administrative Tax Increment Financing 1 -6 Tax Increment Financing 1 -7 Tax Increment Financing 1 -9 Tax Increment Financing 3 -1 Fund Balance Deficit :567 957 6,234 40,342 424,881 436,219 1,205,499 2,579,952 93,710 7,1184 40,536 458,497 11,896 316,270 The City intends to fund these deficits through future tax levies, special assessment levies, tax increments, transfers from other funds, and various other sources. 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, 1999. 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. 37 Imo toms CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 12 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT (CONTINUED) These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 1999 and 1998. Future scheduled tax levies for all bonds outstanding at December 31, 1999 totaled $16,085,894. Note 13 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY At December 31, 1999 and 1998, 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, 1999 and 1998 are shown on the various balance sheets as segregations of the fund equity. A summary of such designations is as follows: December 31, 1999 1998 General Fund: Reserve for prepaid items $ 115,359 $ 98,453 Designated for general contingencies 761,335 Designated for cash flow reserve 3,319,115 1,696,600 Designated for employee benefits 214,857 Designated state aid reductions 250,000 Designated for special programs 390,087 Special Revenue Fund: Reserve for prepaid items - 264 Designated for recreation programs 35,485 36,956 Debt Service Funds: Reserved for debt retirement 3,824,337 1,989,218 Capital Project Funds: Reserved for prepaid items 949 Reserved for land held for resale 989,506 989,506 Designated for capital improvements 9,849,952 13,802,691 Designated for equipment acquisition 33,664 Designated for park improvements = 293,383 Totals $ 18,133,754 $ 20,557,963 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 for 1999 and 1998, totaled $43,852 and $37,233, respectively. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 15 INTERFUND RECEIVABLE AND PAYABLES Individual fund receivable and payable balances at December 31, 1999 are as follows: Fund Receivable Payable Special Revenue Funds: Economic Development Authority $ - $ 567 Community Development Block Grant 2,187 Debt Service Fund: Public Project Refunding Bonds of 1999C 18,380 Capital Project Funds: Dedicated Parks 251,570 Area and Unit Charge 6,024,110 MSA Construction - 424,672 1994 Construction 160,074 1997 Construction 1,126,034 1998 Construction 2,110,853 Town Center Project 963,216 General Tax Increment Administrative 4,529 Tax Increment Financing District 1-6 40,156 Tax Increment Financing District 1 -7 470,429 Tax Increment Financing District 1 -9 9,767 Tax Increment Financing District 3 -1 315,194 Agency Fund: Investment Fund 126,482 $ 6,024,110 $ 6,024,110 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. 39 Immo Wow CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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, 1999, two series of Industrial Revenue Bonds were outstanding with aggregate remaining principal balances of $2,730,000 and $5,200,000, respectively. Note 18 COMMITTED CONTRACTS At December 31, 1999, the City had the following commitments for uncompleted construction contracts: Fund/Project Amount General Fund: 1999 Sealcoating $ 41,742 Capital Project Funds: Civic Complex Fund: Civic Complex 4,475 1995 Construction Fund: Otter Lake Road realingment 147,597 1996 Construction Fund: 21st Avenue Lift Station 16,293 Lake Drive Trunk Utilities, phase II 71,300 Note 19 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: 2000 $ 112,500 2001 112,500 2002 112,500 2003 112,500 2004 112,500 Thereafter 525,000 $ 1,087,500 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 20 COMMITMENT — LAND PURCHASE In January 2000, the City entered into an agreement to purchase approximately 9.85 acres for $472,651. This land will be used for regional ponding purposes and wetland mitigation. This purchase will be funded by the Surface Water Management Fund. Note 21 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 1999, the City of Lino Lakes' contributions to the District were as follows: Operating $ 283,177 Capital 65,800 $ 348,977 Separate financial statements of the District can be obtained by contacting the Centennial Fire District. The unaudited condensed financial statements of the District as of December 31, 1999 are as follows: Total assets $ 1,396,314 Total liabilities 13,095 Total equity 1,383,219 Total operating revenue 506,384 Total operating expenses 432,495 41 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, 1999 With Comparative Amounts At December 31, 1998 Assets Cash and investments Accounts receivable Due from other governmental units Taxes receivable: Delinquent Due from County Prepaid items Total assets Liabilities and Fund Balance Liabilities: Accounts payable Salaries payable Contracts payable Due to other governmental units Deferred revenue Total liabilities Statement 6 1999 1998 $ 3,150,236 167,249 336,636 19,206 50,411 115,359 3,839,097 3,309,600 117,499 327,379 27,114 94,655 98,453 3,974,700 $ 157,838 $ 441,148 211,597 81,569 1,225 9,429 4,253 24,534 36,398 404,623 563,368 Fund balance: Reserved for prepaid items 115,359 98,453 Unreserved: Designated for general contingencies 761,335 Designated for cash flow reserve 3,319,115 1,696,600 Designated for employee benefits 214,857 Designated for state aid reductions 250,000 Designated for special programs 390,087 Total fund balance 3,434,474 3,411,332 Total liabilities and fund balance 3,839,097 $ 3,974,700 CITY OF LINO LAKES, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 1999 (With Comparative Amounts For The Year Ended December 31, 1998) Statement 7 Page 1 of 6 1999 Over (Under) Budget Actual Budget 1998 Actual Revenue: General property taxes: Current and delinquent $ 2,560,937 $ 2,564,686 $ 3,749 5 2,446,468 Fiscal disparities 378,324 378,324 - 454,788 Excess tax increments 13,000 19,654 6,654 3,632 Total general property taxes 2,952,261 2,962,664 10,403 2,904,888 Licenses and permits: Non - business 616,193 794,945 178,752 700,461 Business 26,050 28,774 2,724 26,138 Total licenses and permits 642,243 823,719 181,476 726,599 Intergovernmental: Federal: Other 44,000 47,123 3,123 510,044 State: Local government aid - - 144,095 Local performance aid 17,600 17,631 31 18,233 Homestead credit 329,326 329,326 - 384,752 Mobile home homestead credit 3,461 3,461 3,446 Police state aid 95,000 112,587 17,587 97,920 MSA maintenance 120,000 139,940 19,940 132,788 Other 30,000 116,780 86,780 10,031 County/Regional: Solid waste 35,000 32,397 (2,603) 34,120 Other - 140,808 140,808 44,634 Total intergovernmental 670,926 940,053 269,127 1,380,063 Charges for services: General government 36,500 33,281 (3,219) 4,832 Planning/engineering 153,849 12,810 (141,039) 30,931 Recreation - 7,000 7,000 7,000 Fees retained from collection for other governments - SAC /surcharge 4,000 6,179 2,179 3,906 Administrative charge - other funds 133,000 136,766 3,766 202,774 Aerial map charge - other funds 12,000 17,910 5,910 6,750 Public safety 26,000 64,564 38,564 91,292 Total charges for services 365,349 278,510 (86,839) 347,485 Fines and forfeits 100,000 87,434 (12,566) 102,489 Investment earnings 65,000 27,655 (37,345) 137,410 Refunds and reimbursements 40,000 74,095 34,095 49,975 Miscellaneous: Gas franchise fees 42,000 43,852 1,852 37,233 Cable TV 17,000 26,610 9,610 19,711 Sale of property 20,000 70,916 50,916 7,321 Donations 5,000 5,100 100 9,189 Other 2,845 2,845 Total miscellaneous 84,000 149,323 65,323 73,454 Total revenue 4,919,779 5,343,453 423,674 5,722,363 43 CITY OF LINO LAKES, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 1999 (With Comparative Amounts For The Year Ended December 31, 1998) Statement 7 Page 2 of 6 1999 Over (Under) Budget Actual Budget 1998 Actual - Expenditures: General government: Mayor and council: Current Personal services 5 35,890 S 31,287 $ (4,603) 5 32,646 Supplies 1,000 819 (181) 965 -. Other services and charges 25,100 28,264 3,164 26,661 Contractual Services 14,000 18,546 4,546 6,335 Total mayor and council 75,990 78,916 2,926 66,607 Elections: Current Personal services 7,640 5,438 (2,202) 10,794 Supplies 3,500 59 (3,441) 166 - Other services and charges 800 5,308 4,508 288 Capital outlay 1,200 - (1,200) Total elections 13,140 10,805 (2,335) 11,248 .- Administration: Current Personal services 339,473 354,388 14,915 323,086 Supplies 6,039 10,392 4,353 3,095 Other services and charges 47,890 32,397 (15,493) 80,528 Contractual Services 3,600 3,313 (287) 38,630 Total administration 397,002 400,490 3,488 445,339 Finance: Current Personal services 135,700 113,483 (22,217) 131,109 - Supplies 1,900 2,224 324 1,919 Other services and charges 29,730 34,338 4,608 47,564 Contractual Services 60,750 60,653 (97) 55,435 Capital outlay 29,658 23,508 (6,150) 44,091 Total finance 257,738 234,206 (23,532) 280,118 Cable TV: Current Personal services 2,330 2,193 (137) 2,281 Supplies 200 7 (193) 555 Capital outlay 201 201 380 - Total cable TV 2,530 2,401 (129) 3,216 Consultants: Current Legal 115,000 117,706 2,706 130,689 CITY OF LINO LAKES, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 1999 (With Comparative Amounts For The Year Ended December 31, 1998) Statement 7 Page 3 of 6 1999 Over (Under) Budget Actual Budget 1998 Actual General government: (continued) Economic Development: Current Personal services $ 132,898 $ 134,480 $ 1,582 $ 181,792 Supplies 500 897 397 3,710 Other services and charges 21,900 144,408 122,508 81,715 Contractual services 24,300 1,869 (22,431) 38,674 Capital outlay 500 - (500) 1,347 Total economic development 180,098 281,654 101,556 307,238 Planning and zoning commission: Current Personal services 108,538 110,295 1,757 Supplies 700 537 (163) 48 Other services and charges 27,450 10,573 (16,877) 4,139 Contractual services 13,700 13,819 619 1,577 Total planning and zoning commission 150,388 135,224 (14,664) 5,764 Engineering/planning: Current Personal services 17,884 18,327 443 92,583 Supplies 3,500 329 (3,171) 1,627 Other services and charges 15,380 1,281 (14,099) 48,468 Contractual services 103,016 136,273 33,257 25,036 Capital outlay 642 642 Total engineering/planning 139,780 156,852 17,072 167,714 Senior Service Current Personal services 10,030 11,754 1,724 Other services and charges 240 284 44 Capital outlay 179 179 Total charter commission 10,270 12,217 1,947 Charter commission: Current Supplies 350 - (350) 35 Other services and charges 6,350 988 (5,362) 855 Total charter commission 6,700 988 (5,712) 890 General government buildings: Current Personal services 33,485 23,518 (9,967) 4,204 Supplies 27,770 19,714 (8,056) 17,883 Other services and charges 171,200 163,784 (7,416) 97,897 Contractual services 36,950 18,404 (18,546) 19,571 Capital outlay 108,105 114,190 6,085 1,890 Total general government buildings 377,510 339,610 (37,900) 141,445 Total general government 1,726,146 1,771,069 45,423 1,560,268 CITY OF LINO LAKES, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 1999 (With Comparative Amounts For The Year Ended December 31, 1998) Statement 7 Page 4 of 6 1999 Over (Under) Budget Actual Budget 1998 Actual - Public safety: Police: Current Personal services $ 1,382,004 $ 1,338,926 $ (43,078) S 1,198,819 Supplies 22,200 25,612 3,412 24,496 Other services and charges 87,200 96,649 9,449 87,612 Contractual services 21,820 24,781 2,961 19,928 Capital outlay 6,349 6,349 35 Total police 1,513,224 1,492,317 (20,907) 1,330,890 Fire protection: Current Contractual services 286,000 283,178 (2,822) 271,847 Building inspection: Current Personal services 141,160 144,126 2,966 132,624 Supplies 1,100 2,139 1,039 1,528 Other services and charges 7,650 3,200 (4,450) 2,453 Contractual services 30,200 33,209 3,009 39,556 Total building inspection 180,110 182,674 2,564 176,161 Umme Total public safety Public works: Streets: Current Personal services Supplies Other services and charges Contractual services Capital outlay Total streets Fleet: Current Personal services Supplies Other services and charges Contractual services Total fleet Total public works 1,979,334 1,958,169 274,953 88,010 54,630 102,740 520,333 (21,165) 1,778,898 232,667 (42,286) 249,010 78,797 (9,213) 19,104 54,685 55 52,481 81,722 (21,018) 168,425 1,537 1,537 - 449,408 (70,925) 489,020 72,042 117,030 14,290 203,362 70,703 (1,339) 66,653 89,886 (27,144) 103,970 18,048 3,758 13,513 25 25 - 178,662 (24,700) 184,136 723,695 628,070 (95,625) 673,156 CITY OF LINO LAKES, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 1999 (With Comparative Amounts For The Year Ended December 31, 1998) Statement 7 Page 5 of 6 1999 Over (Under) Budget Actual Budget 1998 Actual Parks and recreation: Parks: Current Personal services $ 309,018 $ 314,057 $ 5,039 $ 329,559 Supplies 35,030 43,230 8,200 34,876 Other services and charges 48,110 43,453 (4,657) 58,386 Contractual services 22,100 17,009 (5,091) 3,525 Capital outlay 65,824 49,788 (16,036) 175,670 Total parks 480,082 467,537 (12,545) 602,016 Recreation: Current Personal services 151,237 157,396 6,159 98,166 Supplies 5,000 4,048 (952) 4,323 Other services and charges 18,310 13,424 (4,886) 14,135 Contractual services 5,400 4,758 (642) 4,088 Total recreation 179,947 179,626 (321) 120,712 Total parks and recreation 660,029 647,163 (12,866) 722,728 Conservation of natural resources: Forestry: Current Personal services 29,208 29,535 327 36,376 Supplies 2,510 91 (2,419) 930 Other services and charges 3,730 468 (3,262) 5,372 Contractual services 4,350 18,915 14,565 3,138 Capital outlay 22,500 14,102 (8,398) 28,120 Total forestry 62,298 63,111 813 73,936 Storm damage cleanup Current Personal services 28,776 Supplies - 400 Other services and charges 3,581 3,581 29,770 Contractual services 68,528 68,528 389,436 Total storm damage cleanup 72,109 72,109 448,382 Environmental: Current Personal services 29,208 28,878 (330) 29,526 Supplies 2,660 691 (1,969) 353 Other services and charges 6,900 7,474 574 2,727 Contractual services 32,400 38,156 5,756 17,998 Total environmental 71,168 75,199 4,031 50,604 CITY OF LINO LAKES, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE • For the Year Ended December 31, 1999 (With Comparative Amounts For The Year Ended December 31, 1998) Statement 7 Page 6 of 6 1999 Over (Under) Budget Actual Budget 1998 Actual — Conservation of natural resources: (continued) Solid waste abatement: Current — Personal services $ 9,924 $ 7,875 $ (2,049) $ 1,611 Supplies 500 32 (468) 247 Other services and charges 8,180 2,142 (6,038) 5,441 Contractual services 11,200 12,615 1,415 9,059 Capital outlay 4,466 Total solid waste abatement 29,804 22,664 (7,140) 20,824 Total conservation of natural resources 163,270 233,083 69,813 593,746 Total expenditures 5,252,474 5,237,554 (14,420) 5,328,796 Revenue over expenditures (332,695) 105,899 438,094 393,567 Other financing sources (uses): Operating transfer from Capital Projects Funds 155,783 155,783 Operating transfer to Capital Projects Funds (189,174) 189,174 Operating transfer to Special Revenue Fund (9,428) ▪ Operating transfer to Enterprise Fund (49,366) (49,366) (17,241) Total other financing sources (uses) 155,783 (82,757) 139,808 (26,669) ▪ Net increase (decrease) in fund balance $ (176,912) 23,142 $ 577,902 366,898 Fund Balance ▪ Beginning of year, as previously stated 3,411,332 3,057,912 Prior period adjustment (13,478) Beginning of year, as restated 3,411,332 3,044,434 Fund balance - December 31 $ 3,434,474 $ 3,411,332 IMIMF 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, 1999 (With Comparative Totals For December 31, 1998) Statement 8 Economic Community Development Development Program Totals Authority Block Grant Recreation 1999 1998 Assets Cash and investments $ $ - $ 41.031 $ 41,031 $ 41,124 Due from other governments 1,230 - 1,230 2,314 Prepaid items 264 Total assets $ $ 1,230 $ 41.031 $ 42,261 $ 43,702 Liabilities and Fund Balance Liabilities: Interfund payable $ 567 $ 2,187 $ - $ 2,754 $ 1,224 Accounts payable 3.987 3,987 2,609 Salaries payable 1.559 1,559 2,649 Total liabilities 567 2,187 5.546 8,300 6,482 Fund balance: Reserved for prepaid items 264 Unreserved: Designated for recreation programs 35,485 35,485 36,956 Undesignated (567) (957) (1,524) Total fund balance (567) (957) 35,485 33,961 37,220 Total liabilities and fund balance $ $ 1,230 $ 41,031 $ 42,261 $ 43,702 CITY OF LINO LAKES, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1999 (With Comparative Totals For the Year Ended December 31, 1998) Statement 9 Revenue: Intergovernmental: Federal: CDBG Charges for services: Recreation fees Administrative charge - other funds Investment earnings Total revenues Economic Community Development Development Program Totals Authority Block Grant Recreation 1999 1998 $ 20,604 $ $ 20,604 $ 25,678 164,555 164,555 123,871 1,605 3 7 661 671 2,830 3 20,611 165,216 185,830 153,984 Expenditures: General government: Current: Personal services 570 9,237 9,807 20,193 Other services and charges - 285 285 543 Contractual services 12,071 12,071 23,925 Parks, recreation and forestry: Current: Personal services - - 72,787 72,787 58,583 Supplies - 82,266 82,266 56,224 Other services and charges 2,643 2,643 1,466 Contractual services 144 144 235 Capital outlay - 9,086 9,086 2,955 Total expenditures 570 21,593 166,926 189,089 164,124 Revenue (under) expenditures (567) (982) (1,710) (3,259) (10,140) Other financing sources: Operating transfer from General Fund - - - - 9,428 Net (decrease) in fund balance (567) (982) (1,710) (3,259) (712) Fund balance Beginning of year, as previously stated - 25 37,195 37,220 38,123 Prior period adjustment - (191) Beginning of year, as restated - 25 37,195 37,220 37,932 Fund balance - December 31 $ (567) $ (957) $ 35,485 $ 33,961 $ 37,220 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, 1999 (With Comparative Totals For the Year Ended December 31, 1998) Statement 10 1999 Over (Under) 1998 Budget Actual Budget Actual Revenue Charges for services: Recreation Fees $ 138,306 $ 164,555 $ 26,249 $ 123,871 Investment earnings 661 661 2,830 Total revenue 138,306 165,216 26,910 126,701 Expenditures: Current: Personal services Supplies Other services and charges Contractual services Capital outlay Total expenditures Net increase (decrease) in fund balance Fund balance Beginning of year, as previously stated Prior period adjustment Beginning of year, as restated Fund balance - December 31 50,936 56,724 2,315 5,788 115,763 $ 22,543 72,787 21,851 58,583 82,266 25,542 56,224 2,643 328 1,466 144 144 235 9,086 3,298 2,955 166,926 51,163 119,463 (1,710) $ (24,253) 7,238 37,195 30,148 (191) 37,195 29,957 $ 35,485 $ 37,195 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, 1999 (With Comparative Totals For December 31, 1998) Improvement Improvement Improvement Improvement Bonds of Bonds of Bonds of Bonds of 1992A 1996A 1998A 1998B Assets Cash and investments $ 56,634 $ 956,768 $ 80,161 $ 117,395 Cash and investments with escrow agent - - Accrued Interest Receivable - Accounts Receivable - - Taxes receivable: Delinquent - 567 Duc from County - - Special assessments receivable: Delinquent 921 2,052 - Deferred 43,828 705,106 107,978 490,972 Due from County 230 - 90 2,093 Total assets $ 101,613 $ 1,663,926 $ 188,229 $ 611,027 Liabilities and Fund Balance Liabilities: Interfund payable $ $ - $ - $ Deferred revenue 44,749 707,158 107,978 Total liabilities 44,749 707,158 107,978 Fund balance Reserved for debt retirement Unreserved - undesignated Total fund balance Total liabilities and fund balance 491,539 491,539 56,864 956,768 80,251 119,488 56,864 956,768 80,251 119,488 $ 101,613 $ 1,663,926 $ 188,229 $ 611,027 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 I999C 1999 1998 29,726 232,748 $ 133,975 4,191 - $ 1,611,598 $ 1,346,775 412 490,338 1,686,484 12,098 2,188,920 1,957 20,722 48 22,727 - 412 591,915 1,596 741 1,089 3,993 2,660 4,567 1,823 4,023 - 10,413 8,876 2,973 230 1,347,884 1,345,186 2,413 44,906 35,889 $ 235,724 $ 631,382 $ 1,711,397 $ 12,146 $ 5,191,333 S 3,340,548 - - $ 18,380 $ 18,380 $ 3,254 1,596 741 1,089 1,354,850 1,348,076 1,596 741 1,089 18,380 1,373,230 1,351,330 34,293 234,983 630,293 1,711,397 3,824,337 1,989,218 - - (6,234) (6,234) - 34,293 234,983 630,293 1,711,397 (6,234) 3,818,103 1,989,218 35,889 $ 235,724 $ 631,382 1,711,397 $ 12,146 $ 5,191,333 $ 3,340,548 CITY OF LINO LAKES, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 1999 With Comparative Totals For The Year Ended December 31, 1998 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 28,739 5,624 34 34,397 $ S $ 113,667 16,967 797,258 14,770 13,353 - 66,263 5,958 2,292 803,216 15,645 211,667 Expenditures: Debt service: Principal 270,000 625,000 - - Interest 153,850 194,550 198,225 92,703 Refunding bond issuance costs - - Fiscal charges 750 2,049 125 125 Total expenditures 424,600 821,599 198,350 92,828 Revenue over (under) expenditures (390,203) (18,383) (182,705) 118,839 Other financing sources (uses): Operating transfer from Capital Project Funds 423,850 Bond proceeds - Payment to refunding bond escrow Total other financing sources (uses) 423,850 Net increase (decrease) in fund balance 33,647 (18,383) (182,705) 118,839 Fund balance Beginning of year, as previously stated 23,217 975,151 262,956 649 Prior period adjustment - - Beginning of year, as restated 23,217 975,151 262,956 649 Fund balance - December 31 $ 56,864 $ 956,768 $ 80,251 $ 119,488 Statement 12 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 1999 1998 $ 243,865 $ 96,171 $ 218,508 $ $ $ 672,211 $ 234,278 36,213 14,226 32,617 100,023 43,784 31,523 12,383 28,392 87,068 37,042 839,350 222,000 71,887 526,394 - - - - 34 262 _ 794 5,371 21,592 20,748 149 56,904 70,563 - 112,500 - - 112,500 - 312,395 128,151 413,609 20,748 149 1,939,977 1,134,323 245,734 50,000 - 1,190,734 740,000 46,551 68,237 267,118 - - 1,021,234 489,581 - - 29,224 16,981 46,205 - 1,235 2,956 - 1,400 8,640 8,072 292,285 119,472 270,074 29,224 18,381 2,266,813 1,237,653 20,110 8,679 143,535 (8,476) (18,232) (326,836) (103,330) - - - 423,850 419,000 _ 961,098 1,719,873 11,998 2,692,969 665,959 (961,098) - - (961,098) - 1,719,873 11,998 2,155,721 1,084,959 20,110 8,679 143,535 1,711,397 (6,234) 1,828,885 981,629 14,183 226,304 486,758 1,989,218 1,009,512 (1,923) 14,183 226,304 486,758 1,989,218 1,007,589 $ 34,293 $ 234,983 $ 630,293 $ 1,711,397 $ (6,234) $ 3,818,103 $ 1,989,218 CAPITAL PROJECT FUNDS Capital Project Funds account for the acquisition or construction of major capital facilities other than those financed by Proprietary Funds and Trust Funds. The City maintained the following Capital Project Funds during the year: Capital Improvement Projects - to account for the proceeds from Equipment Certificates. Closed Bond Fund - to account for excess funds from matured bond issues. 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, 1999 With Comparative Totals for December 31, 1998 Area Capital Closed and Improvement Bond Dedicated Unit MSA Street Projects Fund Parks Charge Construction Reconstruction Assets Cash and investments S 98,423 $ 633,274 $ 286,726 $ 1,200,953 $ $ 246,664 Cash and investments with escrow agent - Accrued interest receivable Accounts receivable 16,805 Interfund receivable 6,024,110 Taxes receivable: Due from County Delinquent tax increment Special assessments receivable: Delinquent 4,441 1,255 12 Deferred 48,386 2,455,647 200,147 Due from County 590 2,375 - Prepaid items - Land held for resale Total assets Liabilities and Fund Balance $ 98,423 $ 686,691 $ 286,726 $ 9,701,145 S $ 446,823 Liabilities: Interfund payable $ $ $ 251,570 $ - $ 424,672 S Accounts payable 5,125 75,498 39,684 209 Retainage payable - Due to other governmental units Deferred revenue 52,827 2,456,902 200,159 Total liabilities 57,952 327,068 2,496,586 424,881 200,159 Fund balance (deficit): Reserved for prepaid items Reserved for land held for resale Unreserved: Designated: Capital improvements 7,204,559 246,664 Equipment acquisition Park improvements Undesignated 98,423 628,739 (40,342) (424,881) Total fund balance (deficit) 98,423 628,739 (40,342) 7,204,559 (424,881) 246,664 Total liabilities and fund balance $ 98,423 $ 686,691 $ 286,726 $ 9,701,145 $ $ 446,823 56 Statement 13 Page 1 of 3 Surface Water SAC Interim Sealcoating Management Revolving Construction $ 66,009 $ 1,336,949 $ 347,194 $ 204,020 10 190,060 202 328,235 487 $ 256,079 S 1,665,873 $ 347,194 $ 204,020 $ 692 8,723 190,070 $ 8,735 328,437 199,485 337,172 $ 56,594 1,328,701 204,020 347,194 56,594 1,328,701 347,194 204,020 $ 256,079 $ 1,665,873 $ 347,194 $ 204,020 57 CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1999 With Comparative Totals for December 31, 1998 Assets Cash and investments Cash and investments with escrow agent Accrued interest receivable Accounts receivable Interfund receivable Taxes receivable: Due from County Delinquent tax increment Special assessments receivable: Delinquent Deferred Due from County Prepaid items Land held for resale Town 1994 1995 1996 1997 1998 Center Construction Construction Construction. Construction Construction Project $ 9,024 $ 659,840 S $ $ 989,506 Total assets $ $ 9,024 $ 659,840 $ $ $ 989,506 Liabilities and Fund Balance Liabilities: Interfund payable $ 160,074 $ Accounts payable 276,145 Retainage payable - Due to other governmental units Deferred revenue Total liabilities 436,219 $ $ 1,126,034 $ 2,110,853 $ 963,216 44 9,993 249,776 120,000 69,472 219,323 44 1,205,499 2,579,952 1,083,216 Fund balance (deficit): Reserved for prepaid items Reserved for land held for resale 989,506 Unreserved: Designated: Capital improvements 9,024 659,796 Equipment acquisition Park improvements - Undesignated (436,219) (1,205,499) (2,579,952) (1,083,216) Total fund balance (deficit) (436,219) 9,024 659,796 (1,205,499) (2,579,952) (93,710) Total liabilities and fund balance $ $ 9,024 $ 659,840 $ $ $ 989,506 58 Statement 13 Page 2 of 3 Civic Town General Center Center Tax Increment Project Infrastructure Administrative $ 140,751 2,571 10 ill 37,862 $ 143,332 $ 37,862 $ INNEN $ - $ $ 4,529 41,191 2,655 — 52,918 94,109 7,184 49,223 37,862 49,223 (7,184) 37,862 (7,184) 143,332 $ 37,862 59 CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1999 With Comparative Totals for December 31, 1998 Tax Tax Tax Tax Tax Tax Increment Increment Increment Increment Increment Increment Financing Financing Financing Financing Financing Financing 1 -4 1 -5 1 -6 1 -7 1 -8 1 -9 Assets Cash and investments $ 43,340 $ 35,130 $ $ $ 21,907 $ Cash and investments with escrow agent - - Accrued interest receivable Accounts receivable - - Interfund receivable - Taxes receivable: Due from County 8 13,230 Delinquent tax increment 170 160 48 1,485 Special assessments receivable: Delinquent - Deferred Due from County Prepaid items Land held for resale - Total assets Liabilities and Fund Balance 43,518 $ 35,290 $ 48 $ 14,715 $ 21,907 Liabilities: Interfund payable $ $ - $ 40,156 $ 470,429 $ - $ 9,767 Accounts payable 960 24,009 380 1,298 823 2,129 Retainage payable - - - - Due to other governmental units - - - Deferred revenue 170 160 48 1,485 Total liabilities 1,130 24,169 40,584 473,212 823 11,896 Fund balance (deficit): Reserved for prepaid items Reserved for land held for resale Unreserved: Designated: Capital improvements Equipment acquisition Park improvements Undesignated Total fund balance (deficit) 42,388 11,121 42,388 11,121 (40,536) (40,536) (458,497) (458,497) 21,084 21,084 (11,896) (11,896) Total liabilities and fund balance $ 43,518 $ 35,290 $ 48 $ 14,715 $ 21,907 $ 60 Statement 13 Page 3 of 3 Tax Increment Financing Totals 3-1 1999 1998 3,985 $ 5,368,066 $ 8,925,700 2,571 4,864,174 10 17,740 16,805 35,881 6,024,110 3,205,002 13,238 4,024 5,848 13,439 5,920 9,769 3,222,475 2,676,820 3,452 64,094 949 989,506 989,506 S 3,985 $ 15,652,001 $ 20,807,098 315,194 S 5,876,494 $ 3,051,986 1,076 860,422 1,327,686 350,436 423,255 214,640 3,985 3,234,243 2,700,028 320,255 10,321,595 7,717,595 (316,270) (316,270) - 949 989,506 989,506 9,849,952 (5,509,052) 5,330,406 13,802,691 33,664 293,383 (2,030,690) 13,089,503 $ 3,985 $ 15,652,001 $ 20,807,098 61 CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1999 With Comparative Totals For The Year Ended December 31, 1998 Revenue: General property taxes: Current and delinquent Tax increments Intergovernmental: Federal: Other State: MSA construction Special assessments: Current and delinquent Prepayments Penalties and interest Utility Charges Investment earnings Refunds and reimbursements Miscellaneous Rental payments Park dedication fees Sale of property Total miscellaneous Total revenue Expenditures: Current: General government: Capital Closed Area and Improvement Bond Dedicated Unit MSA Projects Fund Parks Charge Construction 165,722 - 401,733 5,456 555,410 464 - 1,286 119,294 1,580 5,463 3,127 115,989 52,605 52,605 54,185 177,105 39,126 39,126 42,253 1,193,712 Contractual services - 7,313 10,335 128,078 Public works: Contractual services 1,392 - - Capital outlay: General government 5,250 - Public safety 173,149 - Public works 87,890 Parks, recreation and forestry 57,179 - 1,021,087 Debt service: Interest - - - - Construction/acquisition 204,888 98,114 Total expenditures 324,860 7,313 1,031,422 332,966 98,114 Revenue over(under)expenditures (270,675) 169,792 (989,169) 860,746 (98,114) Other financing sources (uses): Operating transfer from Capital Project Funds - 55,444 Operating transfer (to) from General Fund - - - (155,783) Operating transfer to Debt Service Funds - - (423,850) Operating transfer to Capital Project Funds Contract for deed proceeds - 600,000 Bond proceeds 307,570 - - Total other financing sources (uses) 307,570 655,444 (579,633) Net increase (decrease) in fund balance 36,895 169,792 (333,725) 281,113 (98,114) Fund balance (deficit) Beginning of year, as previously stated 61,528 458,947 293,383 6,923,446 (326,767) Prior period adjustment Beginning of year, as restated 61,528 458,947 293,383 6,923,446 (326,767) Residual equity transfer in Residual equity transfer out Fund balance (deficit) - December 31 $ 98,423 $ 628,739 $ (40,342) $ 7,204,559 $ (424,881) Statement 14 Page 1 of 3 Surface Street Water SAC Interim Reconstruction Sealcoating Management Revolving Construction IMO. $ $ $ $ $ OMNI IMMO 51,557 7,826 117,384 33,713 82,644 138,011 - 106 320 1,954 1,272 12,321 3,641 344 44,951 - 9 87,224 136,799 268,036 3,641 353 13,881 3,847 12,479 210,452 210,452 26,360 3,847 87,224 (73,653) 241,676 (206) 353 33,730 185,317 33,730 - - 185,317 120,954 (73,653) 241,676 (206) 185,670 125,710 130,247 1,087,025 347,400 18,350 125,710 130,247 1,087,025 347,400 18,350 $ 246,664 $ 56,594 S 1,328,701 $ 347,194 S 204,020 63 CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1999 With Comparative Totals For The Year Ended December 31, 1998 Revenue: General property taxes: Current and delinquent Tax increments Intergovernmental: Federal: Other State: MSA construction Special assessments: Current and delinquent Prepayments Penalties and interest Utility Charges Investment earnings Refunds and reimbursements Miscellaneous Rental payments Park dedication fees Sale of property Total miscellaneous Total revenue 1994 1995 1996 1997 1998 Construction Construction Construction Construction Construction 94 6,866 1,029 94 6,866 1,029 Expenditures: Current: General government: Contractual services Public works: Contractual services - Capital outlay: General government Public safety - Public works ° Parks, recreation and forestry Debt service: Interest ° Construction/acquisition 301,260 1,432 817,072 3,786,523 Total expenditures 301,260 1,432 817,072 3,786,523 Revenue over (under) expenditures (301,260) 94 5,434 (817,072) (3,785,494) Other financing sources (uses): Operating transfer from Capital Project Funds - Operating transfer (to) from General Fund - Operating transfer to Debt Service Funds Operating transfer to Capital Project Funds - Contract for deed proceeds Bond proceeds Total other financing sources (uses) Net increase (decrease) in fund balance (301,260) 94 5,434 (817,072) (3,785,494) Fund balance (deficit) Beginning of year, as previously stated (134,959) 8,930 654,362 (388,427) 1,205,542 Prior period adjustment - Beginning of year, as restated (134,959) 8,930 654,362 (388,427) 1,205,542 Residual equity transfer in Residual equity transfer out Fund balance (deficit) - December 31 $ (436,219) $ 9,024 $ 659,796 $ (1,205,499) $ (2,579,952) mom WIMP Nam UMW Statement 14 Page 2 of 3 Town Civic Town General Center Center Center Tax Increment Project Project Infrastructure Administrative 34,490 3,120 34,490 3,120 7,184 197,073 3,155,170 3,144 197,073 3,155,170 3,144 7,184 (197,073) (3,120,680) (24) (7,184) 94,173 - 100,000 - (279,490) 194,173 (279,490) (197,073) (2,926,507) (279,514) (7,184) 103,363 2,975,730 317,376 103,363 2,975,730 317,376 (93,710) $ 49,223 S 37,862 $ (7,184) 65 CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES [N FUND BALANCE For The Year Ended December 31, 1999 With Comparative Totals For The Year Endcd December 31, 1998 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 Revenue: General property taxes: Current and delinquent $ - $ - $ - $ • $ Tax increments 45,738 26,203 8,273 281,480 26,925 Intergovernmental: Federal: Other - - - - State: MSA construction - - - - - Special assessments: Current and delinquent - - - - Prepayments - - - - Penalties and interest 928 168 - - - Utility Charges - - - Investment earnings - - - Refunds and reimbursements - - - - - Miscellaneous Rental payments - - - Park dedication fees - - - Sale of property - - - - Total miscellaneous - - Total revenue 46,666 26,371 8,273 281,480 26,925 Expenditures: Current: General government: Contractual services 97,675 24,075 14,756 269,385 890 Public works: Contractual services - - - - Capital outlay: General government - - - - Public safety - - - - Public works - - - - - Parks, recreation and forestry - - - - Debt service: Interest - - - - - Construction/acquisition - Total expenditures 97,675 24,075 14,756 269,385 890 Revenue over (under) expenditures (51,009) 2,296 (6,483) 12,095 26,035 Other financing sources (uses): Operating transfer from Capital Project Funds - - - - - Operating transfer (to) from General Fund - - - - Operating transfer to Debt Service Funds - - - - - Operating transfer to Capital Project Funds - - - - - Contract for deed proceeds - - - - - Bond proceeds - - - - - Total other financing sources (uses) - - - Nct increase (decrease) in fund balance Fund balance (deficit) Beginning of year, as previously stated Prior period adjustment Beginning of year, as restated Residual equity transfer in Residual equity transfer out (51 ,009) 93,397 93,397 2,296 (6,483) 12,095 8,825 (34,053) (470,592) 8,825 (34,053) (470,592) 26,035 (4,951) (4,951) Fund balance (deficit). December 31 $ 42,388 $ 11,121 $ (40,536) $ (458,497) $ 21,084 ITIew IMIIIN limmo Statement 14 Page 3 of 3 Tax Increment Tax Increment Financing Financing Totals 1 -9 3 -1 1999 1998 $ $ - $ $ 806 448,417 837,036 660,943 744,222 815,234 48,871 119,294 145,691 44,960 2,822 965,581 406,765 1,816,573 1,305 178,080 908,818 30,663 52,605 44,100 39,126 23,558 99,469 91,731 167,127 448,417 2,847,039 5,139,483 5,266 407,008 989,693 955,063 1,392 5,266 (5,266) 5,250 173,149 100,369 1,078,266 8,775,128 407,008 11,123,247 41,409 (8,276,208) 368,664 (55,783) (703,340) 600,000 307,570 517,111 (5,266) 41,409 (7,759,097) (6,630) (357,679) 13,089,503 (6,630) (357,679) 13,089,503 5,409 153,335 70,727 134,935 30,129 12,468,230 13,817,828 (8,678,345) 1,884,492 (2,123,492) 11,140,041 10,901,041 2,222,696 10,933,272 (66,465) 10,866,807 815,507 (815,507) $ (11,896) $ (316,270) $ 5,330,406 $ 13,089,503 67 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: 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, 1999 With Comparative Totals For December 31, 1998 Statement 15 Assets Totals Water Sewer 1999 1998 Current assets: Cash and cash equivalents $ 165,338 $ 638,748 $ 804,086 $ 708,666 Cash and investments with escrow agent 652,895 652,895 - Accrued interest receivable 8,321 8,321 Accounts receivable 104,037 101,539 205,576 268,447 Special assessments receivable: Due from county 1,541 1,541 3,435 Prepaid items 1,438 3,312 4,750 35,829 Total current assets 933,570 743,599 1,677,169 1,016,377 Long term assets: Special assessments, long term 309,865 309,865 295,537 Fixed assets: Buildings 48,690 - 48,690 48,690 Equipment 117,299 135,102 252,401 208,978 Water and sewer systems 13,562,557 15,279,729 28,842,286 24,230,678 Total fixed assets 13,728,546 15,414,831 29,143,377 24,488,346 Less: Allowance for depreciation (1,371,283) (1,696,474) (3,067,757) (2,552,406) Net fixed assets 12,357,263 13,718,357 26,075,620 21,935,940 Total assets $ 13,600,698 $ 14,461,956 $ 28,062,654 $ 23,247,854 Liabilities and Fund Equity Current liabilities: Accounts payable $ 40,774 $ 2,273 $ 43,047 $ 21,897 Salaries payable 5,540 7,043 12,583 5,366 Accrued interest payable 99,086 - 99,086 92,724 Due to other governmental units 3,609 3,609 8,840 Bonds payable - current portion 210,000 210,000 205,000 Total current liabilities 359,009 9,316 368,325 333,827 Long -term liabilities: Bonds payable - long term 4,340,000 - 4,340,000 3,870,000 Compensated absences - payable 8,447 3,770 12,217 12,218 Total liabilities 4,707,456 13,086 4,720,542 4,216,045 Fund equity: Contributed capital Retained earnings Total fund equity 8,760,643 132,599 8,893,242 13,628,456 820,414 14,448,870 22,389,099 18,190,064 953,013 841,745 23,342,112 19,031,809 Total liabilities and fund equity $ 13,600,698 $ 14,461,956 $ 28,062,654 $ 23,247,854 CITY OF LINO LAKES, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1999 With Comparative Totals For The Year Ended December 31, 1998 Statement 16 Totals Water Sewer 1999 1998 Operating revenue: Charges for services $ 453,092 $ 679,020 $ 1,132,112 $ 1,188,284 Hook -up charges 33,885 27,150 61,035 48,150 Water meter sales 68,172 68,172 36,020 Other operating revenue 219 7,353 7,572 33,243 Total operating revenue 555,368 713,523 1,268,891 1,305,697 Operating expenses: Personal services 118,413 120,254 238,667 176,155 Materials and supplies 132,316 5,536 137,852 78,145 Contractual services 69,228 29,329 98,557 46,270 Repair and maintenance - 1,568 1,568 180,012 MCES sewer charges 368,937 368,937 326,619 Depreciation: Purchased assets 91,399 11,378 102,777 52,061 Contributed assets 165,445 247,128 412,573 322,807 Utilities 51,315 20,052 71,367 77,328 Other 9,656 3,486 13,142 5,352 Total operating expenses 637,772 807,668 1,445,440 1,264,749 Net income (loss) from operations (82,404) (94,145) (176,549) 40,948 Other income (expense): Investment earnings 8,873 5,795 14,668 36,310 Special assessments 41,877 133 42,010 566 Loss on disposal of assets - - - (2,375) Bond interest (228,000) - (228,000) (223,582) Paying agent fees (2,800) (2,800) (1,600) Total other income (expense) (180,050) 5,928 ( 174, 122) (190,681) Net income (loss) before operating transfers (262,454) (88,217) (350,671) (149,733) Operating transfers: Operating transfer from General Fund 49,366 - 49,366 17,241 Operating transfer to Capital Projects Fund - - - (180,000) Total operating transfers 49,366 49,366 (162,759) Net income (loss) (213,088) (88,217) (301,305) (312,492) Credit arising from transfer of depreciation to contributed capital 165,445 247,128 412,573 322,807 Retained earnings (deficit) Beginning balance, as previously stated 180,242 661,503 841,745 1,492,588 Prior period adjustment - (5,875) Beginning balance, as restated 180,242 661,503 841,745 1,486,713 Residual equity transfer to Sewer Fund (655,283) Retained earnings - December 31 132,599 $ 820,414 $ 953,013 $ 841,745 CITY OF LINO LAKES, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 1999 With Comparative Totals For The Year Ended December 31, 1998 Statement 17 Cash flows from operating activities: Operating income Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation Change in assets and liabilities: Decrease (increase) in receivables Decrease (increase) in prepaid items Increase (decrease) in payables Net cash flows from operating activities Cash flows from noncapital financing activities: Operating transfer from General Fund Operating transfer to Capital Project Funds Net cash flows from noncapital financing activities Totals Water Sewer 1999 1998 $ (82,404) $ (94,145) $ (176,549) $ 40,948 256,844 258,506 515,350 374,868 (2,688) 44,804 42,116 118,002 (175) 31,254 31,079 (3,233) 44,189 (14,691) 29,498 (181,222) 215,766 225,728 441,494 349,363 49,366 49,366 Cash flows from capital and related financing activities: Principal paid on revenue bonds (205,000) Proceeds from issuance of refunding bonds 680,000 Investment with escrow agent (652,895) Collection of special assessments 41,877 Interest and paying agent fees on revenue bonds (230,800) Acquisition of fixed assets (2,659) Net cash flows from capital and related financing activities (369,477) 133 (40,764) (40,631.) 49,366 17,241 (180,000) 49,366 (162,759) (205,000) (140,000) 680,000 (652,895) - 42,010 35,245 (230,800) (225,182) (43,423) (78,933) (410,108) (408,870) Cash flows from investing activities: Prior period adjustment to fair values - (5,875) Interest on investments 8,873 5,795 14,668 36,310 Net cash flows from investing activities: 8,873 5,795 14,668 30,435 Net increase (decrease) in cash and cash equivalents (95,472) 190,892 95,420 (191,831) Cash and cash equivalents - January 1 260,810 447,856 708,666 900,497 Cash and cash equivalents - December 31 $ 165,338 $ 638,748 $ 804,086 $ 708,666 - Water lines in the amount of $1,627,968 were contributed to the Water Fund in 1999. - Sewer lines in the amount of $2,983,640 were contributed to the Sewer Fund in 1999. Nano 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, 1999 (With Comparative Totals For December 31, 1998) Statement 18 Pending Contractors Assessment Investment Totals Deposits Deposits Fund 1999 1998 Assets Cash and investments $ 441,644 $ 24,920 $ - $ 466,564 $ 298,720 Accrued interest receivable 127,024 127,024 148,538 Deposits receivable 10,520 - 10,520 115,319 Total assets $ 452,164 $ 24,920 $ 127,024 $ 604,108 $ 562,577 Liabilities Interfund payable $ - $ - $ 126,482 $ 126,482 $ 148,538 Accounts payable 49,498 542 50,040 6,710 Deposits payable 402,666 24,920 427,586 407,329 Total liabilities $ 452,164 $ 24,920 $ 127,024 $ 604,108 $ 562,577 71 CITY OF LINO LAKES, MINNESOTA AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For The Year Ended December 31, 1999 Statement 19 Contractors deposits: Assets Cash and investments Deposits receivable Total assets Liabilities Accounts payable Deposits payable Total Liabilities Balance Balance January 1, December 31, 1999 Additions Deletions 1999 $ 256,012 $ 924,138 $ 738,506 $ 441,644 115,319 10,520 115,319 10,520 $ 371,331 $ 934,658 $ 853,825 $ 452,164 6,710 $ 557,856 $ 515,068 $ 49,498 364,621 1,191,950 1,153,905 402,666 371,331 $ 1,749,806 $ 1,668,973 $ 452,164 Pending Assessment Deposits: Assets Cash and investments $ 42,708 $ 74,045 $ 91,833 $ 24,920 Liabilities Deposits payable Investment Fund: Assets Accrued interest receivable 42,708 $ 79,819 $ 97,607 $ 24,920 $ 148,538 $ 131,466 $ 152,980 $ 127,024 Liabilities Interfund payable $ 148,538 $ 126,482 $ 148,538 $ 126,482 Accounts payable 542 542 Total Liabilities $ 148,538 $ 127,024 $ 148,538 $ 127,024 Totals -All Trust and Agency Funds: Assets Cash and investments $ 298,720 $ 998,183 $ 830,339 $ 466,564 Accrued interest receivable 148,538 131,466 152,980 127,024 Deposits receivable 115,319 10,520 115,319 10,520 Total assets $ 562,577 $ 1,140,169 $ 1,098,638 $ 604,108 Liabilities Interfund payable Accounts payable Deposits payable Total liabilities 148,538 $ 127,024 $ 148,538 $ 127,024 6,710 557,856 515,068 49,498 407,329 1,271,769 1,251,512 427,586 562,577 $ 1,956,649 $ 1,915,118 $ 604,108 72 GENERAL FIXED ASSETS ACCOUNT GROUP The City maintains a separate account group for the fixed assets used in the governmental fund 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, 1999 Statement 20 Balance Balance January 1, December 31, 1999 Additions Deletions 1999 Land and improvements $ 1,097,476 $ 1,140,279 $ 29,000 $ 2,208,755 Buildings 1,746,068 4,757,699 85,000 6,418,767 Office equipment and furniture 355,603 436,657 2,509 789,751 Vehicles 952,881 206,433 139,982 1,019,332 Machinery and Shop Equipment 545,915 4,061 - 549,976 Other 635,435 68,602 - 704,037 Totals $ 5,333,378 $ 6,613,731 $ 256,491 $ 11,690,618 Investment in General Fixed Assets from: General Fund $ 644,703 Special Revenue Funds 1,866 Capital Project Funds 8,834,860 Grants 45,252 Donations 69,746 Debt Service Funds 61,400 Assets acquired before January 1, 1992 2,032,791 Total investment in General Fixed Assets $ 11,690,618 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY As of December 31, 1999 Statement 21 Office Machinery Land Equipment and and and Shop Other Improvements Buildings Furniture Vehicles Equipment Improvements Total General government: Administration/finance $ $ $ 77,298 $ $ $ $ 77,298 Elections 21,531 - 21,531 Economic development 5,021 19,201 24,222 Engineering/planning - 13,107 32,330 45,437 - Government buildings 910,155 6,405,809 443,765 - 6,810 21,879 7,788,418 Senior center - 8,628 8,628 Total general government 910,155 6,405,809 569,350 51,531 6,810 21,879 7,965,534 - Public safety: Police 131,840 333,529 3,000 105,655 574,024 Building inspection - 6,459 - 6,459 Total public safety 131,840 339,988 3,000 105,655 580,483 Public works: Streets 12,958 4,629 Shop - 1,012 Surface water management - Total public works 12,958 5,641 Parks, recreation and forestry: Parks, recreation and forestry Total parks, recreation and forestry 1,298,600 1,298,600 82,920 82,920 511,608 511,608 291,853 35,528 16,662 344,043 116,205 196,123 116,205 196,123 821,048 36,540 16,662 874,250 576,503 2,270,351 576,503 2,270,351 Totals $ 2,208,755 $ 6,418,767 $ 789,751 $ 1,019,332 $ 549,976 $ 704,037 $ 11,690,618 ammo 74 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY For The Year Ended December 31, 1999 Statement 22 Balance January 1, 1999 Transfers Balance December 31, Additions Deletions 1999 General government: Administration/finance $ 48,033 $ (2,181) $ 43,581 $ 12,135 $ 77,298 Elections 21,531 - 21,531 Economic development 21,729 2,493 24,222 Engineering/planning 42,344 - 3,093 45,437 Government buildings 2,586,996 (3,947) 5,320,129 114,760 7,788,418 Senior center 2,500 6,128 - 8,628 Total general government 2,723,133 5,369,296 126,895 7,965,534 Public safety: Police 499,780 114,000 39,756 574,024 Building inspections 6,459 6,459 Total public safety 506,239 114,000 39,756 580,483 Public works: Streets 777,509 Shop 35,528 Surface water management 16,662 Total public works 829,699 Parks, recreation and forestry: Parks, recreation and forestry Total parks, recreation and forestry 1,274,307 1,274,307 1,012 105,506 61,967 1,012 105,506 (1,012) 1,024,929 (1,012) 1,024,929 61,967 27,873 27,873 821,048 36,540 16,662 874,250 2,270,351 2,270,351 Totals $ 5,333,378 $ - $ 6,613,731 $ 256,491 $ 11,690,618 75 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, 1999 Statement 23 December 31, 1999 1998 Amount Available And To Be Provided For The Retirement of General Long -Term Debt: Amount available in Debt Service Fund $ 3,818,103 $ 1,989,218 Amount to be provided - future tax levies /assessments /tax increment collections 18,853,001 19,176,780 Total available and to be provided $ 22,671,104 $ 21,165,998 General Long -Term Debt Payable: Bonds payable: General Obligation Bonds: 1996 Equipment Certificates - 75,000 1997 Equipment Certificates 75,000 150,000 1998 Equipment Certificates 192,000 287,734.00 — 1999 Equipment Certificates 307,570 - Public Project Revenue Bonds - 1990A - 1,000,000 Civic Complex Lease Revenue Bonds - 1998A 5,350,000 5,350,000 — Public Project Revenue Refunding Bonds - 1999C 980,000 Total general obligation bonds 6,904,570 6,862,734 Special assessment bonds: G. O. Improvement Bonds of 1992A 2,250,000 2,520,000 G. O. Improvement Bonds of 1996A 3,760,000 4,385,000 G. O. Improvement Bonds of 1998A 4,310,000 4,310,000 G. O. Improvement Bonds of 1998B 2,000,000 2,000,000 G. O. Improvement Bonds of 1999A 1,725,000 Total special assessment bonds 14,045,000 13,215,000 Total bonds payable 20,949,570 20,077,734 Contracts for deed payable 1,459,352 859,352 Compensated absences payable 262,182 228,912 Total general long -term debt $ 22,671,104 $ 21,165,998 Mann 76 SUPPLEMENTARY INFORMATION CITY OF LINO LAKES, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS December 31, 1999 (Unaudited) General Obligation Bonds: 1996 Equipment Certificates 1997 Equipment Certificates 1998 Equipment Certificates 1999 Equipment Certificates Public Project Revenue Bonds - 1990A Civic Complex Lease Revenue Bonds - 1998A Public Project Revenue Refunding Bonds - 1999C Total General Obligation Bonds Special Assessment Bonds: G. O. Improvement Bonds of 1992A G. O. Improvement Bonds of 1996A G. O. Improvement Bonds of 1998A G. O. Improvement Bonds of 1998B G. O. Improvement Refunding Bonds of 1999A Total General Improvement Bonds with special Revenue Bonds: G. O. Water Revenue Bonds of 1992B G. O. Water Revenue Bonds of 1996B G. O. Water Revenue Refunding Bonds of 1999B Total Revenue Bonds Total - all bonds Contract for deed payable Contract for deed payable Contract for deed payable Total - Contracts for deed Total City indebtedness Interest Rates 6.00% 6.00% 6.00% 6.00% 4.00 % -6.70% 4.20 % - 5.35% 4.75% -5.10% 4.00% -6.70% 4.20% -5.20% 4.50 % - 4.90% 4.50% -4.90% 4.25%- 4.70% assessments pledged 4.50% -6.80% 4.10%- 5.70% 4.25% -4.90% 8.00% 8.00% 6.00% Final Maturity Dated Date 2/1/96 12/31/99 2/1/97 12/31/00 2/1/98 12/31/01 2/1/99 12/31/02 10/1/90 2/1/10 8/1/98 2/1/19 9/1/99 2/1/10 4/1/92 2/1/06 10/1/96 2/1/07 8/1/98 2/1/15 8/1/98 2/1/15 9/1/99 2/1/06 4/1/92 10/1/96 9/1/99 7/2/97 12/1/97 12/21/99 Note: '(1) The 1990A principal payments include $950,000 of principal retired by current refunding bonds of 1999C 2/1/08 2/1/12 2/1/08 2/1/02 12/1/02 2/1/02 Exhibit 1 Prior Years Principal Interest Original Payable 1999 Payable Due Due Issue Payments 1/1/99 Issued Payments 12/31/99 In 2000 In 2000 225,000 $ 150,000 $ 75,000 $ $ 75,000 $ - $ $ 225,000 75,000 150,000 - 75,000 75,000 75,000 4,500 287,734 287,734 95,734 192,000 96,000 11,520 - - 307,570 - 307,570 102,570 35,370 1,115,000 115,000 1,000,000 - (1) 1,000,000 - - 5,350,000 5,350,000 - - 5,350,000 267,118 980,000 980,000 45,000 42,292 7,202,734 340,000 6,862,734 1,287,570 1,245,734 6,904,570 318,570 360,800 3,640,000 1,120,000 2,520,000 270,000 2,250,000 280,000 137,345 4,685,000 300,000 4,385,000 625,000 3,760,000 600,000 167,300 4,310,000 4,310,000 - 4,310,000 198,224 2,000,000 2,000,000 - 2,000,000 - 92,703 - - 1,725,000 1,725,000 71,024 14,635,000 1,420,000 13,215,000 1,725,000 895,000 14,045,000 880,000 666,596 1,060,000 220,000 840,000 3,320,000 85,000 3,235,000 4,380,000 305,000 4,075,000 680,000 680,000 55,000 785,000 65,000 49,709 150,000 3,085,000 145,000 158,228 - 680,000 - 28,687 205,000 4,550,000 210,000 236,624 26,217,734 2,065,000 24,152,734 3,692,570 2,345,734 25,499,570 1,408,570 1,264,020 598,382 86,668 511,714 - 511,714 347,638 347,638 - 347,638 27,811 - - 600,000 600,000 250,000 4,142 946,020 86,668 859,352 600,000 1,459,352 250,000 31,953 $27,163,754 $ 2,151,668 $25,012,086 $ 4,292,570 $ 2,345,734 $26,958,922 $ 1,658,570 $ 1,295,973 78 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF DEFERRED TAX LEVIES December 31, 1999 (Unaudited) Exhibit 2 Public G.O. G. 0. Lease G. 0. Project Improvement Year of Equipment Equipment Equipment Improvement Revenue Improvement Refunding Refunding Levy/ Certificates Certificates Certificates Bonds Bonds Bonds Bonds Bonds ollection of 1997 of 1998 of 1999 of 1992A of 1998A of 1998B of 1999C of 1999A Total 999/200 $ 83,475 $ 107,520 $ 144,837 $ 354,861 $ 327,724 $ 151,684 5 115,254 $ 46,552 $ 1,331,907 _ 000/200 - 101,760 120,540 353,352 330,947 154,604 417,356 122,110 1,600,669 001/200 114,082 358,981 338,888 151,273 418,826 118,317 1,500,367 002/200 - 367,953 345,959 153,192 419,187 119,685 1,405,976 003/200 369,724 325,988 154,876 418,399 120,729 1,389,716 004/200 348,731 332,525 151,072 390,270 126,641 1,349,239 005/200 - 343,382 152,519 - 121,459 617,360 006/200 353,031 153,729 126,667 633,427 007/200 361,562 154,704 516,266 - 008/200 368,387 155,441 523,828 009/201 485,462 155,796 641,258 010/201 485,987 155,757 641,744 _ 011/201 490,655 155,313 645,968 012/201 489,001 154,537 643,538 013/201 491,258 158,719 649,977 014/201 492,413 - 492,413 _ 015/201 497,716 497,716 016/201 501,215 501,215 017/201 503,310 503,310 $ 83,475 $ 209,280 $ 379,459 $ 2,153,602 $ 7,865,410 $ 2,313,216 $ 2,179,292 5 902,160 $ 16,085,894 79 CITY OF LINO LAKES, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS December 31, 1999 (Unaudited) G. O. Improvement G. 0. G. 0. G. 0. Equipment Equipment Equipment Refunding Improvement Improvement Improvement Certificates Certificates Certificates Bonds Bonds Bonds Bonds 1997 1998 1999 of 1992A of 1996A. of 1998A of 1998B Bonds payable $ 75,000 $ 192,000 $ 307,570 $ 2,250,000 $ 3,760,000 $ 4,310,000 $ 2,000,000 Future interest pay 4,500 17,280 53,820 201,748 668,180 1,700,700 854,869 Totals $ 79,500 $ 209,280 $ 361,390 $ 2,451,748 $ 4,428,180 $ 6,010,700 $ 2,854,869 Payments to maturity: 2000 79,500 107,520 137,940 417,345 767,300 198,225 92,702 2001 101,760 114,800 2,034,403 735,115 481,700 205,115 2002 - - 108,650 702,565 468,650 195,053 2003 493,980 455,600 190,103 2004 469,460 442,550 190,040 2005 444,785 429,500 189,752 2006 419,965 416,450 184,352 2007 395,010 403,400 183,840 2008 385,462 183,103 2009 372,637 182,140 2010 359,670 180,882 2011 346,489 179,256 2012 333,094 177,248 2013 319,485 174,888 2014 305,805 172,230 2015 291,983 174,165 2016 - - 2017 2018 2019 - 2020 $ 79,500 $ 209,280 $ 361,390 $ 2,451,748 $ 4,428,180 $ 6,010,700 $ 2,854,869 Mows Exhibit 3 G. 0. G. 0. G. 0. G. 0. Water Civic Public Improvement Water Water Revenue Complex Project Refunding Revenue Revenue Refunding Revenue Revenue - Bonds Bonds Bonds Bonds Bonds Bonds of 1999A of 1992B of 1996B of 1999B of 1998A of 1999C Totals $ 1,725,000 $ 785,000 $ 3,085,000 $ 680,000 $ 5,350,000 $ 980,000 $ 25,499,570 350,513 73,564 1,309,803 179,197 3,354,423 276,397 9,044,994 • $ 2,075,513 $ 858,564 $ 4,394,803 $ 859,197 $ 8,704,423 $ 1,256,397 $ 34,544,564 71,024 114,709 303,228 28,687 267,118 87,292 2,672,590 77,481 743,855 306,401 31,295 428,653 128,147 5,388,725 390,682 - 304,075 114,489 431,469 124,109 2,839,742 391,553 301,355 110,834 438,618 120,071 2,502,114 391,350 303,108 111,983 444,975 116,034 2,469,500 390,081 304,195 112,795 426,078 131,521 2,428,707 - 363,342 299,725 118,143 431,860 126,534 2,360,371 - 299,680 113,154 441,625 116,640 1,953,349 298,915 117,817 450,282 111,790 1,547,369 419,034 - 457,595 101,964 1,533,370 419,682 346,594 92,295 1,399,123 418,864 455,094 - 1,399,703 416,541 455,068 1,381,951 - - 459,002 953,375 456,790 934,825 458,415 924,563 458,990 458,990 - - 463,181 463,181 Puma 465,845 465,845 467,171 467,171 $ 2,075,513 $ 858,564 $ 4,394,803 $ 859,197 $ 8,704,423 $ 1,256,397 $ 34,544,564 CITY OF LINO LAKES, MINNESOTA CONSTRUCTION WORK IN PROCESS December 31, 1999 (Unaudited) Exhibit 4 Description Land Expended Easements Prior Contractor Engineering and Other Total 1999 Years Fund 406: Area and Unit Black Duck Lift Station * 14,511 32,058 46,569 Utility Connections 125,560 3,537 129,097 4th Avenue trunk utilities * 346,618 68,439 77,334 492,391 Lilac Street trunk utilities 227,978 57,870 996 286,844 Lilac Street utility extension * 352,709 71,261 15,345 439,315 Laurene Avenue lift station * 56,595 19,336 - 75,931 35W /Hwy 49 trunk utilities * 294,089 64,405 5,908 364,402 Total Fund 406 1,403,549 295,822 135,178 1,834,549 Fund 420: MSA Construction Ware Road reconstruction Fund 421: Sealcoating and Wearcourse Sealcoating Fund 431 Town Center Project Fund 432: Civic Complex Civic Complex Fund 433: Village Infrastructure Infrastructure 46,569 129,097 63,359 429,032 18,583 268,261 128,584 310,731 75,931 1,126 363,276 211,652 1,622,897 1,070,067 362,925 12,950 1,445,942 97,170 1,348,772 611,755 102,716 5,499 719,970 210,451 509,519 50,009 1,081,040 1,131,049 197,072 933,977 6,490,981 1,347,091 7,838,072 3,155,168 4,682,904 348,467 188,237 284,000 820,704 282,634 538,070 Fund 454: 1994 Construction Country Lake Estates * 709,979 132,979 76,435 919,393 1,200 918,193 Highway 49 and Lake Drive * 1,592,168 452,665 571,069 2,615,902 300,060 2,315,842 Total Fund 456 2,302,147 585,644 647,504 3,535,295 301,260 3,234,035 Fund 456: 1996 Construction Trappers Crossing Centennial School Total Fund 458 709,086 164,394 25,338 898,818 1,094,119 236,115 39,900 1,370,134 1,803,205 400,509 65,238 2,268,952 1,433 1,433 898,818 1,368,701 2,267,519 Fund 459: 1997 Construction Otter Lake Road realignment 1,574,161 320,498 486,017 2,380,676 817,071 1,563,605 Otter Lake Service Road - 9,972 113,778 123,750 - 123,750 Total Fund 459 1,574,161 330,470 599,795 2,504,426 817,071 1,687,355 Fund 460: 1998 Construction Apollo Drive phase III * 369,595 84,511 37,481 491,587 449,970 41,617 21st Ave street and utilities 436,151 133,604 48,292 618,047 544,689 73,358 Lake Drive trunk utilities * 2,640,307 224,712 919,880 3,784,899 2,658,007 1,126,892 Lake's Addition road reconstruction * 1,711,224 298,111 134,410 2,143,745 133,847 2,009,898 Total Fund 460 5,157,277 740,938 1,140,063 7,038,278 3,786,513 3,251,765 Totals $20,761,609 $3,057,270 $5,318,3:58 $29,137,237 $9,060,424 $20,076,813 * Completed Project 82 NONNI CITY OF LINO LAKES, MINNESOTA INSURANCE IN FORCE December 31, 1999 (Unaudited) Exhibit 5 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) 16,853,073 Valuable Papers ($500 Deductible) 50,000 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 Miscellaneous equipment ($500 Deductible) 25,000 Workmen's compensation Statutory Umbrella Liability 1,000,000 Crime - Theft Disappearance and Destruction ($500 Deductible) 50,000 CITY OF LINO LAKES, MINNESOTA TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES (Unaudited) Exhibit 6 Tax Capacity Tax Capacity Values Values 1998/1999 1997/1998 Taxable valuations: Total $ 10,043,022 $ 9,679,139 Fiscal disparities: Distribution 1,382,028 1,395,540 Contribution (464,039) (358,998) Less: Captured Tax Increment Value (646,438) (555,542) $ 10,314,573 $ 10,160,139 Tax Tax Certified Capacity Certified Capacity Levy Rate Levy Rate Taxes Levied: Revenue 2,926,261 28.503 2,889,626 27.764 Bond and Interest 773,657 7.536 278,197 2.673 Totals $ 3,699,918 36.039 $ 3,167,823 30.437 Certified levy amount is after HACA reduction 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 1990 $ 2,155,051 $ 682,575 $ 804,363 $ 468,340 $ 191,654 $ 8,119 1991 2,268,639 667,448 845,420 499,737 256,034 1992 2,552,835 807,564 910,147 505,096 330,028 1993 2,829,202 911,230 1,025,157 565,019 327,796 1994 3,169,862 1,082,796 1,127,883 554,533 404,650 1995 3,557,038 1,173,047 1,265,064 700,873 418,054 1996 3,966,738 1,289,751 1,446,985 694,455 535,547 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 CITY OF LINO LAKES, MINNESOTA - GENERAL FUND REVENUES BY SOURCE Last Ten Fiscal Years (Unaudited) Table 2 Total General General Property Licenses Inter- Charges Fines Fiscal Fund Taxes and Governmental for and Other Year Revenue Levied Permits Revenues Services Forfeits Revenue 1990 $ 2,294,649 $ 994,399 $ 254,620 $ 629,919 $ 208,981 $ 83,618 $ 123,112 - 1991 2,421,534 1,179,087 332,392 483,015 195,190 86,603 145,247 1992 2,705,794 1,206,998 493,977 607,831 210,129 79,643 107,216 1993 3,177,662 1,420,369 565,684 673,944 239,562 83,019 195,084 1994 3,295,398 1,597,542 383,388 677,337 353,026 72,454 211,651 1995 3,772,335 1,941,415 544,267 738,652 241,393 93,861 212,747 1996 4,627,532 2,327,048 788,480 816,794 308,262 86,158 300,790 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 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 1990 $ 1,529,821 $ 1,494,647 97.70% $ 21,620 $ 1,516,267 99.11% $ 50,963 3.33% 1991 1,717,474 1,674,178 97.48% 24,342 1,698,520 98.90% 59,664 3.47% 1992 1,865,188 1,805,972 96.83% 24,395 1,830,367 98.13% 76,791 4.12% 1993 2,073,987 2,057,602 99.21% 50,099 2,107,701 101.63% 29,534 1.42% 1994 2,268,950 2,243,045 98.86% 15,014 2,258,059 99.52% 27,804 1.23% 1995 2,634,350 2,613,719 99.22% 21,206 2,634,925 100.02% 22,368 0.85% 1996 3,040,000 3,011,917 99.08% 15,641 3,027,558 99.59% 22,489 0.74% 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% Note: Does not include tax increment levies and collections. Note: Current tax collections include State levy related credits (HACA). 87 CITY OF LINO LAKES, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) Table 4 Fiscal Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Current Assmts. Due $ 245,618 351,941 379,521 632,067 387,200 394,770 366,146 593,957 664,912 520,982 Current Assmts. Collected % of Current Collections to Assmts. Due $ 168,442 68.58% 293,452 83.38% 306,443 80.74% 580,678 91.87% 355,543 91.82% 353,424 89.53% 355,609 97.12% 589,158 99.19% 657,041 98.82% 512,433 98.36% Delinquent Assessments Collected $ 107,879 65,396 82,664 39,313 32,743 26,051 26,831 20,153 3,561 8,429 % of Total Collections Total Total to Current Outstanding Collected Assmts. Due Del. Assmts. $ 276,321 112.50% $ 132,985 358,848 101.96% 126,088 389,107 102.53% 118,690 619,991 98.09% 43,036 388,286 100.28% 36,497 379,475 96.13% 10,221 382,440 104.45% 21,040 609,311 102.59% 5,692 660,602 99.35% 12,019 520,862 99.98% 11,947 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 — 1990 $ 60,000 $ 29,542 $ 89,542 $ 2,155,051 4.15% 1991 127,500 108,872 236,372 2,268,639 10.42% 1992 172,500 114,821 287,321 2,552,835 11.25% 1993 177,500 108,276 285,776 2,829,202 10.10% 1994 282,500 96,268 378,768 3,169,862 11.95% 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% (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 AND NET BONDED DEBT PER CAPTIA Last Ten Fiscal Years (Unaudited) Taxes Real Personal Payable Property Property Total Fiscal Disparities 1991 $ 4,250,314 $ 283,565 $ 4,533,879 $ 1,006,228 1992 4,359,156 289,520 4,648,676 1,083,066 1993 4,557,819 309,993 4,867,812 954,529 1994 5,146,854 360,097 5,506,951 970,411 1995 6,204,237 392,508 6,596,745 879,810 1996 7,390,566 435,045 7,825,611 952,790 1997 8,344,972 462,282 8,807,254 1,003,376 1998 9,244,905 434,234 9,679,139 1,036,542 1999 9,649,657 393,365 10,043,022 917,989 Tax Increment Table 6 Assessor's Estimated Ratio of Total Net Taxable Market Value of Assessed to Value Taxable Property Actual Value $ (215,224) $ 5,324,883 $ 264,013,200 2.02% (245,834) 5,485,908 290,466,200 1.89% (244,419) 5,577,922 320,714,400 1.74% (256,841) 6,220,521 368,267,100 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% CITY OF LINO LAKES, MINNESOTA PROPERTY TAX RATES (3) - 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 1990 23.601 43.075 28.846 4.796 100.318 1991 26.564 68.717 31.400 5.133 131.814 1992 26.822 67.857 32.990 5.306 132.975 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 (1) The majority of Lino Lakes is served by School District 12. (2) Other includes: Metropolitan Council, Mosquito Control, Metropolitan Transit, Rice Creek Watershed District and Forest Lake Hospital. (3) The State of Minnesota changed the method of calculating property taxes effective for taxes payable in 1991. Years 1991 through 1998 reflect tax capacity values based on a different formula than in previous years. Source: Anoka County Department of Property Records and Taxation. 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 Deb Year Population (1) Propery (2) Debt (3) on Hand Bonded Debt Value Per Capita 1990 8,807 $ 4,942,987 $ 1,630,000 $ 58,685 $ 1,571,315 31.79% $ 178.42 1991 9,273 5,324,883 1,591,000 105,537 1,485,463 27.90% 160.19 — 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 (1) Population estimates provided from Metropolitan Council except for 1990 which reflects the federal census. (2) The State of Minnesota changed the method of calculating property taxes effective for taxes payable in 1988 and again in 1991. Years 1989 and 1990 reflect tax capacity values. Years 1991 through 1998 reflect tax capacity value based on a different formula than in previous years. (3) Amount excludes tax increment, special assessment, enterprise and EDA bonds. CITY OF LINO LAKES, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT INCLUDING DEBT RATIOS December 31, 1999 (Unaudited) Table 9 Overlapping Debt: Bonded G.O. Percentage Gross Bonded Debt Applicable City Share Outstanding (1) in C:ity(2) of Debt Anoka County $ 84,210,000 5.56% $ 4,682,076 School District 12 66,274,000 44.82% 29,704,007 School District 624 45,915,000 2.61% 1,198,382 School District 831 53,665,000 7.30% 3,917,545 SISD 916 21,960,000 2.20% 483,120 Metropolitan Council 89,630,000 0.60% 537,780 Total Overlapping Debt 361,654,000 40,522,909 Direct Debt: City of Lino Lakes 6,904,570 100.00% 6,904,570 Total Overlapping & Direct Debt $ 368,558,570 $ 47,427,479 Debt Ratios: Ratio of Debt per capita (15,760 population) - overlapping $2,571 Ratio of Debt per capita (15,760 population) - direct $438 Ratio of Debt per capita (15,760 population) - total $3,009 Ratio of Debt to estimated market valuation of $687,737,400 6. 90% (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. CITY OF LINO LAKES, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN December 31, 1999 (Unaudited) Table 10 1999 1998 Market Value $ 687,737,400 $ 627,423,800 — Debt Limit Percentage 2% 2% Debt Limit 13,754,748 12,548,476 Total Bonded Debt 25,499,570 24,152,734 _ Less: Special Assessment Bonds (14,045,000) (13,215,000) Revenue Bonds - Enterprise Fund (4,550,000) (4,075,000) Public Project Revenue Bonds (6,330,000) (6,350,000) Cash in related Debt Service Funds (29,726) (8,893) Total Debt Applicable to Debt Limit $ 544,844 503,841 Legal Debt Margin $ 13,209,904 $ 12,044,635 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF REVENUE BOND COVERAGE WATER FUND Last Eight Years (3) (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 (1) Total Water Fund revenues and transfers in. (2) Total Water Fund expenses exclusive of depreciation, interest on debt and fiscal charges. (3) Prior to 1992 the City's Water Fund had no debt. CITY OF LINO LAKES, MINNESOTA PRINCIPAL TAXPAYERS (Unaudited) Table 12 Ten of the City's Largest Taxpayers Taxpayer Type of Business Percent of 1999 Net Tax City's Net Capacity Tax Capacity Northern States Power Utility $ 209,654 2.03% Taylor Corp. Commercial/Industrial 155,117 1.50% Gargaro, Nicholas & Deborah Commercial/Industrial 104,384 1.01% F & G, Inc. Commercial/Industrial 78,435 0.76% Minnegasco, Inc. Utility 60,876 0.59% — Anoka Electric Cooperative Utility 60,412 0.59% — Northern Development LLC Commercial/Industrial 59,189 0.57% Minnesota Pipeline Co. Utility 44,006 0.43% Lino Lakes Business Center Commercial/Industrial 39,333 0.38% Moline Concrete Products Co. Manufacturing 33,212 0.32% Total Ten Largest Taxpayers $ 844,618 8.19% 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) 1990 $ 231,211,700 350 $ 23,229,413 Not Available 1991 264,013,200 396 34,041,557 Not Available 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 (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. 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) 1990 8,807 4,382 2,603 4.6% 1991 9,273 4,638 2,777 4.9% 1992 10,056 4,931 2,974 4.8% 1993 11,193 5,219 3,313 4.8% 1994 12,266 5,587 3,671 3.6% 1995 13,097 5,932 3,899 3.1% 1996 13,756 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% tamp (1) Centennial School District 12 (2) Metropolitan Council except 1990 is Federal Census (3) Minnesota Department of Economic Security CITY OF LINO LAKES, MINNESOTA MISCELLANEOUS STATISTICS (Unaudited) Table 15 Date of Incorporation 5/11/55 Date of Adoption of City Charter 1/12/82 Form of Government Charter Area of City (square miles) 33 Miles of Streets: Trunk Highways Paved - County Paved - City 17.4 28.5 93.1 Number of Street Lights 397 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 3 1 52 1 20 Recreation: Park area 198 Number of Parks & Playgrounds 22 Trails 14 miles Municipal Water: Gallons Pumped 292,801,000 Number of Connections 2,655 Miles of watermain 37.53 Number of Fire Hydrants 524 Water Tower Capacity (gallons) 2 million Municipal Sewer: Number of Connections Miles of sewermain Employees: Full -time Part-time 2,846 47.48 58 4 Elections: Registered voters - last general election 8,674 Number of votes cast 6,747 Percent of registered voters voting 77% 100