HomeMy WebLinkAboutComprehensive Annual Financial Report 12/31/2010COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LINO LAKES, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2010
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
Organizational Chart 2
—
Letter of Transmittal 3
—
Certificate of Achievement for Excellence in Financial Reporting 8
IIIIMIN
— II. FINANCIAL SECTION
Independent Auditors' Report 9
Management's Discussion and Analysis 11
— Basic Financial Statements
Statement of Net Assets Statement 1 21
■
Statement of Activities Statement 2 22
Balance Sheet - Governmental Funds Statement 3 24
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets Statement 4 26
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Governmental Funds Statement 5 27
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balance to the Statement
of Activities Statement 6 29
Statement of Net Assets - Proprietary Funds Statement 7 30
Statement of Revenues, Expenses and Changes in Net Assets -
Proprietary Funds Statement 8 31
Statement of Cash Flows - Proprietary Funds Statement 9 32
Statement of Net Assets - Fiduciary Funds – Agency Funds Statement 10 33
Notes to Financial Statements 34
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Required Supplementary Information
General Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual
Notes to Required Supplementary Information
Schedule of Funding Progress for Postemployment Benefit Plan
Combining Fund Financial Statements
Combining Balance Sheet — Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance — Nonmajor Governmental Funds
Special Revenue Fund — Program Recreation:
Schedule of Revenues, Expenditures and Changes in Fund
Balance — Budget and Actual
Statement of Changes in Assets and Liabilities — Fiduciary Funds —
Agency Funds
Supplementary Financial Information
Combined Schedule of Indebtedness
Schedule of Deferred Tax Levies
Debt Service Payments to Maturity - All Bonds
Insurance in Force
Taxable Valuations, Tax Levies and Tax Rates
III. STATISTICAL SECTION
Net Assets by Component — Last Eight Fiscal Years
Changes in Net Assets - Last Eight Fiscal Years
Fund Balances, Governmental Funds - Last Ten Fiscal Years
Changes in Fund Balances, Governmental Funds — Last Ten Fiscal Years
Assessed and Actual Value of Taxable Property -
Last Ten Fiscal Years
Page
Reference Number
Statement 11 57
64
Statement 12 65
Statement 13 66
Statement 14 72
Statement 15 78
Statement 16 79
Exhibit 1 80
Exhibit 2 82
Exhibit 3 84
Exhibit 4 87
Exhibit 5 88
Table 1 89
Table 2 90
Table 3 92
Table 4 94
Table 5 96
NNW
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
.- Page
Reference Number
Direct and Overlapping Property Tax Rates -
— Last Ten Fiscal Years Table 6 97
Principal Property Taxpayers Table 7 98
Property Tax Levies and Collections - Last Ten Fiscal Years Table 8 99
Ratios of Outstanding Debt by Type Table 9 101
Direct and Overlapping Governmental Activities Debt Table 10 103
_ Legal Debt Margin Information Table 11 104
Demographic and Economic Statistics Table 12 106
Principal Employers, Current Year and Nine Years Ago Table 13 107
Full -Time Equivalent Employees by Type Table 14 108
Operating Indicators by Function/Program Table 15 110
Capital Asset Statistics by Function/Program Table 16 112
I.
INTRODUCTORY
SECTION
IMMO
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2010
Elected Officials
Mayor:
Jeff Reinert
Term Expires
December 31, 2011
Council Members:
Kathi Gallup December 31, 2011
Rob Rafferty December 31, 2013
Jeff O'Donnell December 31, 2013
Dave Roeser December 31, 2011
Appointed Personnel
City Administrator Jeff Karison
Director of Administration Daniel Tesch
Director of Finance Alan Rolek
Director of Public Safety Kent Strege
•
Director of Community Development Michael Grochala
Director of Public Service Rick DeGardner
City of Lino Lakes Organizational Chart
Citizens
Honorable Mayor
and
City Council
Commissions
Cable
▪ Parks and Recreation
▪ Economic Development
▪ Planning and Zoning
Fire
Environmental
City Administrator
City Clerk
Professional Consultants
Engineering
Attorney
Fiscal
Public Services
Public Safety
Parks
Public Works
Recreation
Adm dstration
Police
Emergency Management
Community Development
Human Resources
Administrative Services
2
Finance
Planning
Economic Development
Engineering
Environmental Services
Inspections
Accounting
Management Information Systems
Utility Billing
Um,
May 31,2011
Honorable Mayor
Members of the City Council
Citizens of the City of Lino Lakes, Minnesota
Minnesota State law requires that cities over 2,500 population publish within six months of the close of each
fiscal year a complete set of financial statements presented in conformity with generally accepted accounting
principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed
certified public accountants and submit them to the state auditor. Pursuant to that requirement, we hereby issue
the comprehensive annual financial report of the City of Lino Lakes, Minnesota for the fiscal year ended
December 31, 2010.
This report consists of management's representations concerning the finances of the City of Lino Lakes.
Consequently, management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these representations, management
of the City of Lino Lakes has established a comprehensive internal control framework that is designed both to
protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the City of Lino Lakes' financial statements in conformity with GAAP. Because the cost of internal
controls should not outweigh their benefits, the city's comprehensive framework of internal controls has been
designed to provide reasonable rather than absolute assurance that the financial statements will be free from
material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial
MERV report is complete and reliable in all material respects.
The City of Lino Lakes' financial statements have been audited by LarsonAllen LLP, a firm of licensed certified
public accountants. The goal of the independent audit was to provide reasonable assurance that the financial
statements of the City for the fiscal year ended December 31, 2010, are free of material misstatement. The
independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; assessing the accounting principles used and significant estimates made by management; and
evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit
that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements for the
fiscal year ended December 31, 2010, are fairly presented in conformity with GAAP. The independent auditor's
report is presented as the first component of the financial section of this report.
GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic
financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is
designed to complement MD &A and should be read in conjunction with it. The City of Lino Lakes' MD &A can
be found immediately following the report of the independent auditors.
3
600 Town Center Parkway, Lino Lakes, Minnesota 55014-1182
Phone: 651- 982 -2400 • Fax: 651 - 982 -2499
Profile of the Government
The City of Lino Lakes, incorporated in 1955, is a growing community in the southeast comer of the County of
Anoka. It covers an area of 33 square miles and has a population of approximately 20,400. The population has
more than doubled from the 1990 census figure of 8,807 and has grown by 21% since 2000. 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 City Charter, as amended, establishes a mayor - council form of government and grants the city council full
policy - making and legislative authority to the mayor and four council members. The city council is responsible,
among other things, for passing ordinances, adopting the budget, appointing committees, and hiring a city
administrator. The city administrator has the responsibility of carrying out the policies and ordinances of the city
council, for overseeing the day -to -day operation of the city. The city council is elected at -large on a non - partisan
basis, with council members serving four -year terms and the mayor serving a two -year term. Elections are held
every two years with two council seats and the mayor being up for election each election cycle.
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.
The annual budget is the foundation for the City of Lino Lakes' financial planning and control. All divisions are
required to submit appropriations requests to the city administrator for review and consolidation into a proposed
budget. The city administrator is responsible for submitting the proposed annual budget to the City Council in
August of each year. The city council is required to hold a public hearing on the proposed budget and to adopt by
resolution a final budget and certify it no later than December 28. The budget amounts cannot increase beyond the
estimated receipts except to the extent that actual receipts exceed the estimate. Division directors may make
transfers of appropriations within a department, but transfers of appropriations between departments require
council approval. Budget -to- actual comparisons for the general fund and the recreation program fund, the only
funds for which an annual budget has been adopted, are provided in this report beginning on pages 57 and 78,
respectively.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which the City of Lino Lakes operates.
Local economy. The economic development effort established by the City Council in 1993 increased the
commercial/industrial tax base in the City from 3% of the total tax base to 10% in 2010. Development of three
industrial parks - Apollo Business Park on 35W, Lakes Industrial Park on Lake Drive, and the Clearwater Creek
Development Center on 35E, provided excellent opportunities for manufacturing and distribution businesses to
move their headquarters to Lino Lakes. Before the recession began in late 2007 the Lino Lakes Town Center,
comprising approximately 200 acres surrounding the 35W/Lake Drive interchange, was developing at a rapid
pace. SuperTarget and Kohl's anchor the shopping center quadrant, while Apollo Business Park brought
approximately 1,000 new employees to the area. Land was purchased by Anoka County on a third quadrant for
future development of a regional library.
4
Factors Affecting Financial Condition (Continued)
In 2006, the City placed a major focus on reconstruction of the 35W/Lake Drive interchange and completion of
public improvements in the Legacy at Woods Edge mixed use development to accommodate planned
development. Within Legacy at Woods Edge, the Lino Lakes Civic Complex and Chain of Lakes YMCA provide
a civic and community focus as part of the vision for Town Center. A workforce family housing project and
assisted living facility provide diversity in housing to underserved populations within the City.
The deep recession has had negative impacts on the Legacy development. Both the master developer and lender
— defaulted, sending the remaining 22 acres intended for townhomes and commercial uses into tax forfeit. However,
the solid foundation that was built and strong interest by developers prior to the recession ensures that better
economic times will once again bring the interest in residential and commercial growth needed to complete the
vision.
Building activity and development continued to be soft in 2010, reflecting the nationwide market. Building
permits for new homes in 2010 numbered 31, compared to 28 in 2009. This represents about 1/3 of the new home
permits issued in 2007 and is down by approximately 85% from 2005.
In anticipation of a strengthening economy, the City took the lead on developing the infrastructure needed to
service future growth on the 35E /County Road 14 interchange area. A major reconstruction of the interchange
completes a multi -year improvement of County Road 14 from Highway 61 in Hugo, through Centerville, to 35W
in Lino Lakes. The City portion of the cost for this bridge reconstruction project is being financed through Anoka
County, with the City issuing a $4.26 million General Obligation Note to the County. The interchange will be
completed in the summer of 2011.
- With both major interstate interchanges complete, the City is preparing for development of several hundred acres
in the northeast quadrant of 35E/14. Interest in the commercial interchange has spurred planning for an extension
of Otter Lake Road North, which will leave the City well poised to accommodate significant future industrial,
commercial and residential development.
Long -term financial planning. The sagging economic conditions since 2008 continue to provide challenges in
our long -term outlook. In 2004, the city entered into an agreement with a master developer to develop 40 acres in
the southeast quadrant of I -35W and Lake Drive. This mixed -use development is intended to include diverse
opportunities for housing, retail and office uses. To date, the development includes the Lino Lakes Civic Complex
(which houses the city hall, police station and school district early childhood center), the Chain of Lakes YMCA,
_
a 60 -unit workforce housing project, 13,000 square feet of leasable commercial space, and a former hotel, which
is planned to be converted into an assisted living facility. Anoka County has plans to build a new regional library
across the street from the development site, which is scheduled for 2012. However, the deep economic recession
has stalled housing and commercial plans in the development and has forced the remaining 26 acres into
foreclosure and tax forfeiture. The City continues to look for ways to resurrect the project and strives to be
prepared to market the property when the economy recovers.
WOW
5
Factors Affecting Financial Condition (Continued)
Street, streetscape, water, sewer, and storm water improvements, as well as a small community park, have been
installed within the development area and assessed to the development. Improvements to the existing Lake Drive
and the construction of a new interchange at I -35W and Lake Drive were completed in 2008. This $11.1 million
improvement was financed through the joint efforts of MNDOT, Anoka County and the City of Lino Lakes. The
City has issued $4,215,000 in G.O. Tax Increment bonds and will use tax increment financing and Minnesota
State Aid funds to finance its portion of the project cost. It is acknowledged that this development will result in
additional ongoing costs involved in servicing and maintaining the streets and public areas, which will be
addressed in future operating budgets.
The city's current five -year financial plan, adopted in January, 2008, identifies street and utility improvements
totaling $23,287,990 over the period of 2008 through 2012. These improvements are anticipated to be funded
through a number of funding sources, including special assessments, municipal state aid road funds, the area and
unit trunk fund, the stormwater management fund and voter - approved tax levies. Also included in the final year of
the plan is a feasibility study for a new public works facility. Scheduled capital equipment and office equipment
needs and the financing for those needs are also included in the plan. The five -year plan also includes funding
projections for operations and operating impacts for the period of 2008 -2012. This plan is in the process of being
revised to reflect the anticipated activity through the year 2015.
Cash management policies and practices. 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. The City Council reviews the
investment policy annually.
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. Due to the weakened
economy, a historically low interest rate environment has persisted over the last few years and has had a dramatic
impact on the city's investment earnings. The average yield on investments for 2010 was 1.74 %. Investment
income includes positive or negative changes in the fair value of investments. Changes in fair value during the
current year, however, do not necessarily represent trends that will continue; nor is it always possible to realize
such amounts, especially in the case of temporary changes in the fair value of investments the city intends to hold
to maturity.
Risk management. The City's general property, liability and worker's compensation coverage is provided
through the League of Minnesota Cities Trust (LMCIT).
At the beginning of the insurance year, the city deposits with LMCIT 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. LMCIT's reserves and rates are reviewed annually by an
actuary to assure that the program remains financially strong.
6
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awards the Certificate of
Achievement for excellence in financial reporting to cities that meet certain criteria. The City of Lino Lakes
received this award for its comprehensive annual financial report for the year ended December 31, 2009. This
marks the tenth consecutive year that the city has received this prestigious award. A governmental unit must
publish an easily readable and efficiently organized comprehensive annual financial report, the contents of which
conform to program requirements. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2010 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 high standards of the Certificate program.
The timely 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 support for maintaining the highest standard of professionalism in the management of the
financial operation of the City.
Respectfully submitted,
Alan J. Rolek
Director of Finance
MOO
INEW
7
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, 2009
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
goveniment units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in govt accounting
and financial reporting.
8
II.
FINANCIAL
SECTION
IMMO
Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
LarssnAl 1eri
LV
CPAs, Consultants & Advisors
www.larsonallen.com
INDEPENDENT AUDITORS' REPORT
We have audited the accompanying financial statements of the governmental activities, the business-
" type activities, each major fund, and the aggregate remaining fund information of the City of Lino
Lakes, Minnesota as of and for the year ended December 31, 2010, which collectively comprise the
City's basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the City's management. Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America 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 financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our
opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the governmental activities, the business -type activities, each major fund, and the
aggregate remaining fund information of the City of Lino Lakes, Minnesota as of December 31, 2010,
and the respective changes in financial position and cash flows, where applicable, thereof and for the
year then ended in conformity with accounting principles generally accepted in the United States of
America.
In accordance with Government Auditing Standards, we have also issued a report dated May 31, 2011
on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in assessing the results of
our audit.
NEXIA
INTERNATIONAL
9
An independent member of Nexia International
Honorable Mayor and
Members of the City Council
City of Lino Lakes
The management's discussion and analysis, budgetary comparison information and schedule of
funding progress as listed in the table of contents are not a required part of the basic financial
statements but are supplementary information required by accounting principles generally accepted in
the United States of America. We have applied certain limited procedures, which consisted principally
of inquires of management regarding the methods of measurement and presentation of the required
supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The accompanying supplementary
information, including the introductory section, combining fund financial statements, supplementary
financial information and statistical section listed in the table of contents are presented for purposes of
additional analysis and are not a required part of the basic financial statements. Such information,
except for the introductory and statistical sections on which we express no opinion, has been subjected
to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, is
fairly stated in all material respects in relation to the basic financial statements taken as a whole.
Minneapolis, Minnesota
May 31, 2011
10
1-1-P
LarsonAllen LLP
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2010
As management of the City of Lino Lakes, Minnesota, we offer readers of the City of Lino Lakes' financial
statements this narrative overview and analysis of the financial activities of the City of Lino Lakes for the
fiscal year ended December 31, 2010. We encourage readers to consider the information presented here
in conjunction with additional information that we have furnished in our letter of transmittal, which can be
found on pages 3 -7 of this report.
FINANCIAL HIGHLIGHTS
• The assets of the City of Lino Lakes exceeded its liabilities at the close of the most recent fiscal year
by $88,106,214 (net assets). Of this amount $27,467,511 (unrestricted net assets) may be used to
' — meet the City's ongoing obligations to citizens and creditors in accordance with the City's fund
designations and fiscal policies.
• The City's total net assets decreased by $819,082, reflecting the depreciation of existing
infrastructure assets under the full accrual basis of accounting.
• As of the close of the current fiscal year, the City of Lino Lakes' governmental funds reported
combined ending fund balance of $21,166,347, an increase of $93,914 in comparison with the prior
year primarily due to the receipt of excess tax increment revenue in the general fund. Approximately
80% of this total amount, or $17,012,557, is available for spending at the City's discretion
(unreserved fund balance).
• At the end of the current fiscal year, unreserved fund balance for the general fund was $5,445,334, or
65% of total general fund expenditures.
• The City's total bonded debt decreased by $2,036,000 (7.7 %) during the current fiscal period. In
addition, the City carried a note to Anoka County for $4,260,000 during the year for the the City's
portion 135E /County Road 14 interchange project cost. The City issued a refunding bond in the
amount $1,000,000 to refinance its G.O. Improvement and Utility Revenue bonds of 2004. Principal in
the amount of $3,206,000 was retired during the year.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City of Lino Lakes' basic
financial statements. The City of Lino Lakes' basic financial statements comprise three components:
1. Government -wide financial statements
2. Fund financial statements
3. Notes to the financial statements
This report also contains other supplementary information in addition to the basic financial statements
themselves.
Government -wide financial statements The government -wide financial statements are designed to
provide readers with a broad overview of the City of Lino Lakes' finances, in a manner similar to private -
sector business.
The statement of net assets presents information on all of the City of Lino Lakes' assets and liabilities,
with the difference between the two reported as net assets. Over time, increases or decreases in net
assets may serve as a useful indicator of whether the financial position of the City of Lino Lakes is
improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused compensated absences and OPEB liabilities).
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2010
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Government -wide financial statements (Continued) Both of the government -wide financial statements
distinguish functions of the City of Lino Lakes that are principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions that are intended to recover all
or a significant portion of their costs through user fees and charges (business -type activities). The
governmental activities of the City of Lino Lakes include general government, public safety, public
services, parks, recreation and forestry, conservation of natural resources and community development.
The business -type activities of the City of Lino Lakes include a water utility and sewer utility.
The government -wide financial statements can be found on pages 21 -23 of this report.
Fund financial statements A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City of Lino Lakes, like
other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance- related legal requirements. All of the funds of the City of Lino Lakes can be divided into three
categories: governmental funds, proprietary funds and fiduciary funds.
Governmental funds Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However, unlike the
government -wide financial statements, governmental fund financial statements focus on near -term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government's near -term
financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long -term impact of the government's near -term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental functions and governmental activities.
The City of Lino Lakes maintains thirty -seven individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the General fund, G.O. Improvement Bonds 2005A fund,
I -35E Interchange fund and Area and Units Charge fund, all of which are considered to be major funds.
Data from the other thirty -three governmental funds are combined into a single, aggregate presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form of combining
statements elsewhere in this report.
The City of Lino Lakes adopts an annual appropriated budget for its general and program recreation
special revenue funds. A budgetary comparison statement has been provided for these funds to
demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 24 through 29 of this report.
Proprietary funds The City of Lino Lakes maintains two proprietary type funds. Enterprise funds are
used to report the same functions presented as business -type activities in the government -wide financial
statements. The City of Lino Lakes uses enterprise funds to account for its sewer and water utilities.
The proprietary fund statements provide the same type of information as the government -wide financial
statements, only in more detail. The proprietary fund financial statements provide separate information for
the sewer fund and the water fund, which are considered to be major funds of the City of Lino Lakes. The
basic proprietary fund financial statements can be found on pages 30 through 32 of this report.
12
INNS
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2010
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Fiduciary funds Fiduciary funds are used to account for assets held by the City as an agent for
individuals, private organizations, or other governments.
Notes to the financial statements The notes provide additional information that is essential to a full
— understanding of the data provided in the government -wide and fund financial statements. The notes to
the financial statements can be found on pages 34 -56 of this report.
Other information The combining statements and schedules referred to earlier in conjunction with
nonmajor governmental funds can be found on pages 67 -80 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. The City of Lino Lakes' assets exceeded liabilities by $88,106,214 at the close of the most
recent fiscal year, an decrease of $819,082 from the previous year. This decrease is primarily due to the
depreciation of capital assets under the full accrual basis of accounting.
By far the largest portion of the City of Lino Lakes' net assets (59 %) reflects its investment in capital
assets (e.g. land, buildings, machinery, equipment, and infrastructure), less any related debt used to
— acquire those assets that is still outstanding. The City of Lino Lakes uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although the City of
Lino Lakes' investment in its capital assets is reported net of related debt, it should be noted that the
— resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
Condensed versions of the statements of net assets at December 31, 2010 and 2009 are as follows:
Current and Other Assets
— Capital Assets
Total Assets
Noncurrent Liabilities Outstanding
— Other Liabilities
Total Liabilities
Net Assets:
— Invested in Capital Assets, Net
of Related Debt
Restricted
Unrestricted
— Total Net Assets
Governmental Activities Business -Type Activities
2010 2009 2010
$ 31,085,069 $ 31,111,757 $ 10,830,886
41,950,227 44,441,064 30,442,635
73,035,296 75,552,821 41,273,521
24,336,418 25,984,244
969,751 827,328
25,306,169 26,811,572
Total
2009 2010 2009
$ 10,258,440 $ 41,915,955 $ 41,370,197
31,240,252 72,392,862 75,681,316
41,498,692 114,308,817 117,051,513
835,278 1,204,232
61,156 110,413
896,434 1,314,645
22,562,217 23,400,453 29,648,461
8,428,025 9,414,474
16, 738, 885 15, 926, 322 10,728,626
30,071,840
10,112,207
25,171,696 27,188,476
1,030,907 937,741
26,202,603 28,126,217
52,210,678 53,472,293
8,428,025 9,414,474
27, 467, 511 26, 038, 529
$ 47,729,127 $ 48,741,249 $ 40,377,087 $ 40,184,047 $ 88,106,214 $ 88,925,296
— Of the remaining balance of the City of Lino Lakes' net assets, restricted net assets (10 %) are to be used
for debt service requirements and a nonexpendable environmental fund. Unrestricted net assets (31 %)
may be used to meet the government's ongoing obligations to citizens and creditors.
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2010
GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED)
At the end of the current fiscal year, the City of Lino Lakes is able to report positive balances in all three
categories of net assets, both for the government as a whole, as well as for its separate governmental
and business -type activities.
Governmental activities Governmental activities decreased the City of Lino Lakes' net assets by
$1,012,112. Transfers to Business -Type activities and depreciation of capital assets under the full accrual
basis of accounting were the primary reasons for this decrease.
Business -type activities Business -type activities increased the City of Lino Lakes' net assets by
$193,040. Operating income, investment earnings and transfers from governmental activities to the water
and sewer funds accounted for a significant portion of that increase.
Condensed statements of revenues, expenses, and changes in net assets highlights are as follows for
the years ended December 31, 2010 and 2009:
Governmental Activities
Business -Type Activities Total
2010 2009 2010 2009 2010 2009
REVENUES
Program Revenues:
Charges for Services $ 1,412,916 $ 1,434,181 $ 2,585,231 $ 2,867,981 $ 3,998,147 $ 4,302,162
Operating Grants and Contributions 617,450 682,797 - 62,710 617,450 745,507
Capital Grants and Contributions 1,388,984 1,357,015 8,709 8,769 1,397,693 1,365,784
General Revenues:
Property Taxes 8,568,236 9,673,693 - 8,568,236 9,673,693
Franchise Taxes 150,924 133,892 - 150,924 133,892
Other Taxes 45,023 739 - - 45,023 739
Contributions Not Restricted to
Specific Programs 4,389 11,321 4,389 11,321
Unrestricted Investment Eamings 225,677 429,325 104,770 228,747 330,447 658,072
Gain on Disposal of Capital Assets - 12,644 - - - 12,644
Total Revenues 12,413,599 13,735,607 2,698,710 3,168,207 15,112,309 16,903,814
EXPENSES
General Govemment 1,987,415 2,201,439 - 1,987,415 2,201,439
Public Safety 3,971,261 4,299,366 - - 3,971,261 4,299,366
Public Service 3,968,063 4,027,553 3,968,063 4,027,553
Parks, Recreation and Forestry 1,124,907 1,313,560 - 1,124,907 1,313,560
Conservation of Natural Resources 197,571 215,607 - - 197,571 215,607
Community Development 1,105,254 1,005,997 - 1,105,254 1,005,997
Interest on Long -Term Debt 1,064,172 928,668 - - 1,064,172 928,668
Water 1,045,901 1,089,569 1,045,901 1,089,569
Sewer 1,466,847 1,432,107 1,466,847 1,432,107
Total Expenses 13,418,643 13,992,190 2,512,748 2,521,676 15,931,391 16,513,866
CHANGE IN NET ASSETS
BEFORE TRANSFERS (1,005,044) (256,583) 185,962 646,531 (819,082) 389,948
Transfers (7,078) (136,068) 7,078 136,068 - -
CHANGE IN NET ASSETS (1,012,122) (392,651) 193,040 782,599 (819,082) 389,948
Net Assets - Beginning of Year 48,741,249 49,133,900 40,184,047 39,401,448 88,925,296 88,535,348
NET ASSETS - END OF YEAR $ 47,729,127 $ 48,741,249 $ 40,377,087 $ 40,184,047 $ 88,106,214 $ 88,925,296
14
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2010
GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED)
Below are specific graphs that provide comparisons of the government activities' direct program revenues
with their expenditures. Any shortfalls in direct revenues are primarily supported by property tax levy or
general state aid.
Expenses and Program Revenues — Governmental Activities
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$ 500,000
$-
. ?" Jp��� • �w� fit �a�v2 ^drat#. �� �t'A • O�'�
Patsy'
Revenues by Source — Governmental Activities
Unrestricted grants Unrestricted
and contributions in vest men earnings
0% 2% Other
0%
Franchise taxes
1%
Property taxes
69%
Charges for services
1 2%
■ Expenses
■ Revenues
Operating grants and
contributions
5%
Capital grants and
contributions
11%
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2010
GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) —
Below are specific graphs that provide comparisons of the business -type activities' direct program
revenues with their expenditures. Excess revenues are retained within each fund until such time that
capital replacement is needed.
Expenses and Program Revenues — Business -type Activities
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800, 000
$600, 000
$400, 000
$200, 000
$-
Water
Revenues by Source — Business -type Activities
Operating grants and
contributions
0%
Capital grants and
contributions
0%
Sewer
Other
4%
Charges for services
96%
OEx pens es
• R even ues
imm
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2010
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the City of Lino Lakes uses fund accounting to ensure and demonstrate compliance with
finance related legal requirements.
Governmental Funds The focus of the City of Lino Lakes' governmental funds is to provide information
on near -term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City of Lino Lakes' financing requirements. In particular, unreserved fund balance may
serve as a useful measure of a government's net resources available for spending at the end of the fiscal
year. As of the end of the current fiscal year, the City of Lino Lakes' governmental funds reported
combined ending fund balances of $21,166,347, an increase of $93,914, or 0.4 %, over the previous year,
primarily due to the receipt of excess tax increment revenue in the general fund. Approximately 80% of
this total amount, or $17,012,557, constitutes unreserved fund balance, which is available for spending at
the government's discretion. The remainder of fund balance is reserved to indicate that it is not available
for new spending because it has already been committed 1) to liquidate contracts and purchase orders of
the prior period ($183,813), 2) to pay debt service ($2,986,102), 3) to fund interfund advances
($658,875), 4) to fund environmental improvements ($100,000), or for long -term notes receivable
($225,000).
The general fund is the primary operating fund of the City of Lino Lakes. At the end of the current fiscal
year, unreserved fund balance of the general fund was $5,445,334, while the total fund balance was
$5,626,805. As a measure of the general fund's liquidity, it may be useful to compare unreserved fund
balance and total fund balance to total fund expenditures. Unreserved fund balance represents 65% of
total general fund expenditures, while total fund balance represents 67% of that same amount.
The fund balance of the City of Lino Lakes' general fund increased by $238,841 during the current fiscal
year. A soft real estate market and the onset of an economic recession in December 2007, reduced
building activities again this year which decreased permit revenue. Even as signs of economic recovery
were being seen, the remaining effects of the recession also had an impact on property tax
delinquencies, and interest rates, which made a significant impact on budgeted investment earnings.
However, the City received unanticipated revenue in the form of excess tax increment revenue which
helped to somewhat offset reduced revenue in other budget areas. In addition, reduced expenditures,
primarily for personal services through vacant positions, and contractual services offset the reduced
revenues. Overall, the general fund's revenues were within approximately 2% of the amended budget,
while expenditures and transfers were 4% below budgeted levels.
The G.O. improvement bonds 2005A fund has a total fund deficit of ($1,093,765). This fund is related to
the bonds issued for the Legacy Woods Edge improvement project. The payment of debt service and
delinquency in the collection of special assessments dedicated to this issue caused a significant
decrease in this fund. An interfund loan from the Sewer fund has aided in the payment of debt service for
this issue.
The 135E Interchange fund has a total fund balance at year -end of $4,194,759, primarily due to the
issuance of debt for construction financing. This balance will be reduced throughout 2011 as the
interchange project progresses.
The area and unit charge fund has a total fund balance of $3,578,910, of which $658,875 is reserved for
advances to other funds, and $2,920,035 is unreserved and available for financing capital improvements.
The fund balance during the current year increased by $680,748, due in large part to the reduction in the
advances to other funds and to lower expenditures in 2010.
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2010
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS (CONTINUED)
Proprietaiy funds The City of Lino Lakes' proprietary funds provide the same type of information found
in the government-wide financial statements, but in more detail.
The water fund has total net assets at year-end of $17,722,683, of which $3.737.394 are unrestricted.
The increase in net assets of $107,716 was primarily due to operating inuome, contributions from the
private sources and the primary govemment, and nvestment earnings.
Total net assets in the sewer fund at the end of 2010 were $22.854.404. of which $8.991.232 was
unrestricted. Net assets increased $85,324 during the current year resulting primarily from operating
income and investment income.
The water ratea, which reflect water conservation efforts through a tiered rate otnunture, and sewer Rates
were unchanged in 2010.
GENERAL FUND BUDGETARY HIGHLIGHTS
The original budoetvvaeammndadoeveno|dmneoduhngMheyearrmfleuUngdonadonoandgnantonamaked
primarily for police personnel and equiprnent, a reduction in expected state a|d, and reallocating
resources within the original budget.
Revenues were $123.063 under budget for the year. This is due to a few major hacbzrs. Property taxes
were lower due to higher delinqencies in tax payments. Investment eonnings, due to historically low
interest rates were also significantly under budget. Lower building activity due to the recessed economy
and, thereyone, fewer new construction building permits being issued was also a factor. State
intergovernmental revenues for police PERA aid were below budgeted levels for the year due to position
vacancies. Local govemment grants were slightly under budget due to lower grant funds allocated by the
granting entity. Public safety charges for service were also well over budget due to higher than expected
traffic control contracts. Fines and forfeitures were under budgeted amounts due to reduced funding for
patrolling for vehicular violations and the success of the city's Achieving Compliance through Education
(ACE) program. Expenditures came in under the budgeted revenues by $362,103 due mainly to lower
than expected personal services costs from vacant positions and reduced benefit costs. Energy costs for
fuels and electricity were lower than budgeted emountu, and supplies costs were generally lower than
anticipated. There were also net transfers from the general fund of $612.699. This resulted in a net fund
balance increase of $238,841 for the fiscal year.
18
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2010
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets The City of Lino Lakes' investment in capital assets for its governmental and business-
` type activities as of December 31, 2010, is $72,392,862 (net of accumulated depreciation). This
investment in capital assets includes land, buildings, office equipment and furniture, vehicles, machinery
and equipment, other capital assets, and infrastructure. This represents a decrease in the City of Lino
Lakes' investment in capital assets (net of accumulated depreciation) of 4.35 %. Due to the economic
downturn, no new infrastructure projects were undertaken by the City, and therefore, the only additions
were from projects in progress. The decrease within the governmental activities and is attributable to the
depreciation of constructed streets, underground infrastructure and vehicles. Within the business -type
activities decreases were also attributable to depreciation of existing of the water and sewer funds.
Land
Construction in Progress
Buildings
Office Equipment and Fumiture
Vehicles
Machinery and Shop Equipment
Other Equipment
Infrastructure
Capital Assets, Net
Capital Assets at Year -End
(Net of Accumulated Depreciation)
Govemmental Activities Business -Type Activities
2009 2010 2009
$ 2,809,059 $ - $
2010
$ 2,809,059
3,728,690
360,674
1,223,361
232,749
271,875
33,323,819
41,950,227
3,945,724
408,514
1,364,599
184,434
311,081
35,417,653
$ 44,441,064
182,348
30,260,287
30,442,635
13,054
213,894
31,013,304
$ 31,240,252
Total
2010
$ 2,809,059
3,728,690
360,674
1,223,361
415,097
271,875
63,584,106
$ 72,392,862
2009
$ 2,809,059
13,054
3,945,724
408,514
1,364,599
398,328
311,081
66,430,957
$ 75,681,316
Additional information on the City's capital assets can be found in the notes to the financial statements on
pages 34 -56.
Long -term debt At the end of the current fiscal year, the City of Lino Lakes had total bonded debt
outstanding of $20,111,000. Of this amount $10,141,000 comprises tax supported debt, $9,175,000 is
—
special assessment debt and $795,000 is revenue supported debt. All outstanding debt carries the
general obligation backing for which the city is liable in the event of default by the property owners subject
to the specific taxes, special assessments or revenues pledged to the retirement of the debt. In addition,
the City carries a note to Anoka County for its share of the cost of the I -35E /County Road 14 Interchange
project in the amount of $4,260,000.
Wow
G.O. Bonds
G.O. Special Assessment Bonds
G.O. Revenue Bonds
Total Outstanding Debt
Outstanding Debt at Year -End
Governmental Activities Business -Type Activities Total
2010 2009 2010 2009
$ 10,141,000 $ 10,712,000 $ - $
9,175,000 10,265,000 -
- - 795,000 1,170,000
$ 19,316,000 $ 20,977,000 $ 795,000 $ 1,170,000
2010 2009
$ 10,141,000 $ 10,712,000
9,175,000 10,265,000
795,000 1,170,000
$ 20,111,000 $ 22,147,000
The City of Lino Lakes' total bonded debt decreased by $2,036,000 (7.7 %) during the current fiscal year.
The key factors for the change include the issuance of $170,000 in 2010A Equipment Certificates and
$1,000,000 in 2010A G.O. Improvement and Utility Revenue Refunding Bonds, and retirement of
principal in the amount of $3,206,000 during the year.
Additional information on the City's long -term debt can be found in the notes to the financial statements
on pages 34 -56.
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2010
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
• The unemployment rate for the City of Lino Lakes at year -end is 7.1%, which is a significant decrease
from a rate of 7.8% a year ago. This is slightly higher than the state's average unemployment rate of
6.8% and significantly Tower than the national average of 9.1% at the end of 2010.
• Residential growth in the City has slowed significantly over the last three years due to the general
residential real estate market downturn and current economic recession, with about one -third the
number of new home permits issued in 2010 as in 2007, and less than 85% of new home permits
issued in 2005. This is expected to level off in 2011, with hopes of the beginning of a recovery of the
housing market in 2012. This, as well as falling property values of the existing tax base, will have a
significant impact on the City's tax base for 2012 and beyond.
• Energy costs, while relatively stable in recent months, are expected to continue to increase over the
coming months. This will have an impact on the City's budget for the coming year and thereafter.
• Property tax reforms and State budget deficits have significantly impacted local government aid
payments the City of Lino Lakes receives. Local government aid and market value homestead credit
was reduced to zero for 2003 and 2004 -2010. While the City is exempted from local government aid,
no market value homestead credit is expected to be received in 2011.
• The Federal Reserve Board has decreased the federal funds rates significantly, currently to between
0.00% — 0.25 %, which is expected to result in sizable decreases in the City's investment earnings.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Lino Lakes' finances for all of
those with an interest in the government's finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Director of
Finance, City of Lino Lakes, 600 Town Center Parkway, Lino Lakes, Minnesota, 55014.
20
BASIC FINANCIAL STATEMENTS
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2010
MOB
Governmental Business -type
Activities Activities
Statement 1
Total
ASSETS
Cash and investments $ 16,900,487 $ 9,792,728 $ 26,693,215
Cash and investments with escrow agent 4,271,142 4,271,142
Accrued interest receivable 54,444 - 54,444
Accounts receivable 142,875 384,017 526,892
Due from other governments 140,549 1,590 142,139
Internal Balances (559,111) 559,111
Taxes receivable 538,764 - 538,764
-
Special assessments receivable 8,857,806 40,408 8,898,214
Long -term notes receivable 225,000 - 225,000
Prepaid items 183,813 20,988 204,801
- Inventory - 27,576 27,576
Unamortized bond issue costs 229,300 4,468 233,768
Permanently restricted cash and investments 100,000 100,000
Capital assets:
Land 2,809,059 - 2,809,059
Other capital assets, net of depreciation 39,141,168 30,442,635 69,583,803
Total assets 73,035,296 41,273,521 114,308,817
IMMO
LIABILITIES
Accounts payable 266,618 37,644 304,262
- Salaries payable 221,625 11,363 232,988
Contracts and retainage payable 17,561 - 17,561
Accrued interest payable 411,113 11,941 423,054
- Due to other governments 52,834 - 52,834
Other accrued liabilities 208 208
Non - current liabilities:
Due within one year 2,429,475 418,632 2,848,107
-
Due in more than one year 21,906,943 416,646 22,323,589
Total liabilities 25,306,169 896,434 26,202,603
NET ASSETS
Invested in capital assets, net of related debt 22,562,217 29,648,461 52,210,678
Restricted for:
Debt service - expendable 8,328,025 8,328,025
Environmental improvements - nonexpendable 100,000 - 100,000
Unrestricted 16,738,885 10,728,626 27,467,511
Total net assets $ 47,729,127 $ 40,377,087 $ 88,106,214
The accompanying notes are an integral part of these basic financial statements.
21
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF ACTIVITIES
Year Ended December 31, 2010
Functions /Programs
Governmental activities:
General government
Public safety
Public services
Parks, recreation and forestry
Conservation of natural resources
Community development
Interest on long -term debt
Total governmental activities
Business -type activities:
Water
Sewer
Total business -type activities
Total
Expenses
$ 1,987,415
3,971,261
3,968,063
1,124,907
197,571
1,105,254
1,064,172
13,418,643
1,045,901
1,466,847
2,512,748
$ 15,931,391
Program Revenues
Charges for
Services
$ 98,403
691,005
427,223
177,984
4,153
14,148
1,412,916
Operating
Grants and Capital Grants and
Contributions Contributions
$ 188,273 $
179,108
184,652
65,417
1,388,984
617,450 1,388,984
1,087,013 -
1,498,218
2,585,231
$ 3,998,147 $ 617,450
6,216
2,493
8,709
$ 1,397,693
General revenues:
Taxes:
Property taxes, levied for general purpose
Franchise taxes
Other taxes
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning
Net assets - ending
The accompanying notes are an integral part of these basic financial statements.
22
Statement 2
Net (Expense) Revenue and Changes in Net Assets
Governmental Business -type
Activities Activities
Total
$ (1,700,739) $ - $ (1,700,739)
(3,101,148) (3,101,148)
(1,967,204) (1,967,204)
(946,923) - (946,923)
(128,001) - (128,001)
(1,091,106) (1,091,106)
— (1,064,172) - (1,064,172)
(9,999,293) - (9,999,293)
IMMO
SONO
MOM
47,328 47,328
33,864 33,864
81,192 81,192
(9,999,293) 81,192 (9,918,101)
8,568,236 8,568,236
150,924 - 150,924
45,023 - 45,023
4,389 4,389
225,677 104,770 330,447
(7,078) 7,078 -
8,987,171 111,848 9,099,019
(1,012,122) 193,040 (819,082)
48,741,249 40,184,047 88,925,296
$ 47,729,127 $ 40,377,087 $ 88,106,214
23
CITY OF LINO LAKES, MINNESOTA
BALANCE SHEET - GOVERNMENTAL FUNDS
December 31, 2010
G.O. Area and
Improvement 135E Unit
Assets General Bonds 2005A Interchange Charge
Cash and investments $ 5,459,582 $ - $ - $ 2,778,231
Cash and investments with escrow agent - 4,271,142
Accrued interest receivable 54,444 -
Accounts receivable 103,253 - 23,828
Due from other governmental units 139,049
Interfund receivable -
Taxes receivable:
Delinquent 378,504
Due from county 105,627
Special assessments receivable:
Delinquent - - 128,946
Deferred 1,177 5,851,618 1,344,766
Due from county - - 117,976
Long -term notes receivable - -
Prepaid items 181,471 - -
Permanently restricted cash and investments - - - -
Advances to other funds - 658,875
Total assets $ 6,423,107 $ 5,851,618 $ 4,271,142 $ 5,052,622
Liabilities and equity
Liabilities:
Interfund payable
Accounts payable
Salaries payable
Contracts and retainage payable
Due to other governmental units
Advances from other funds
Deferred revenue
Total liabilities
Fund balances:
Reserved :
Reserved for prepaid items
Reserved for debt retirement
Reserved for advances to other funds
Reserved for environmental improvements
Reserved for long -term notes receivable
Unreserved:
Designated:
General fund
Special revenue funds
Capital projects funds
Undesignated reported in:
Debt service funds
Capital projects funds
Permanent funds
Total fund balances
Total liabilities and fund balances
$ 1,093,765 $ 76,250 $
190,073 - 133
221,394
4,268 -
886
379,681 5,851,618 - 1,473,712
796,302 6,945,383 76,383 1,473,712
181,471
5,445,334
(1,093,765)
658,875
4,194,759 2,920,035
5,626,805 (1,093,765) 4,194,759 3,578,910
$ 6,423,107 $ 5,851,618 $ 4,271,142 $ 5,052,622
The accompanying notes are an integral part of these basic financial statements.
24
Statement 3
Other Total
Governmental Governmental
Funds Funds
8,662,674
15,794
1,500
1,376,681
16,900,487
4,271 ,142
54,444
142,875
140,549
1,376,681
42,685 421,189
1 1,948 117,575
51,799 180,745
1,331,289 8,528,850
30,235 148,211
225,000 225,000
2,342 183,813
100,000 100,000
658,875
$ 11,851,947 $ 33,450,436
$ 765,777 $ 1,935,792
76,412 266,618
231 221,625
13,293 17,561
51,948 52,834
658,875 658,875
1,425,773 9,130,784
2,992,309 12,284,089
2,342 183,813
2,986,102 2,986,102
658,875
100,000 100,000
225,000 225,000
5,445,334
110,471 110,471
5,651,180 12,765,974
(1,093,765)
(228,133) (228,133)
12,676 1 2,676
8,859,638 21, 166,347
$ 11,851,947 $ 33,450,436
25
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
... SHEET TO THE STATEMENT OF NET ASSETS
December 31, 2010
INEw
Total Fund Balances for Governmental Funds
Total net assets reported for governmental activities in the statement of net assets
is different because:
Capital assets used in governmental funds are not financial resources and,
therefore, are not reported in the funds. Those assets consist of:
Statement 4
$ 21,166,347
Land $ 2,809,059
Buildings, Net of Accumulated Depreciation 3,728,690
Office Equipment and Furniture, Net of Accumulated Depreciation 360,674
." Vehicles, Net of Accumulated Depreciation 1,223,361
Machinery and Shop Equipment, Net of Accumulated Depreciation 232,749
Other Equipment, Net of Accumulated Depreciation 271,875
— Infrastructure, Net of Accumulated Depreciation 33,323,819 41,950,227
Some of the City's property taxes and special assessments will be collected after year -end, but are
not available soon enough to pay for the current period's expenditures and, therefore, are reported as
deferred revenue in the governmental funds. 9,130,784
Bond issuance costs are reported as expenditures in the governmental funds and are shown net of
accumulated amortization on the statement of net assets. 229,300
Interest on long -term debt is not accrued in governmental funds, but rather is recognized as an
expenditure when due. Accrued interest for general obligation bonds is included in the statement of
net assets.
Long -term liabilities that pertain to governmental funds, including bonds payable, are not due and
payable in the current period and therefore are not reported as fund liabilities. All liabilities - both
current and long -term - are reported in the statement of net assets. Balances at year -end are:
(411,113)
Bonds Payable (19,316,000)
— Unamortized Premiums (102,101)
Unamortized Discounts 30,091
Notes Payable (4,260,000)
Other Post Employment Benefits (63,287)
Compensated Absence Payable (625,121) (24,336,418)
Total Net Assets of Governmental Activities $ 47,729,127
The accompanying notes are an integral part of these basic financial statements.
26
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS
Year Ended December 31, 2010
G.O. Area and
Improvement I35E Unit
Revenue: General Bonds 2005A Interchange Charge
General property taxes $ 7,566,099 $ - $ $
Tax increments
Licenses and permits 330,138
Intergovernmental 609,781
Special assessments 10,172 - 457,351
Charges for services 364,605 239,954
Fines and forfeits 127,203 - -
Investment earnings 45,811 100 66,444
Refunds 26,841 -
Miscellaneous 152,842
Total revenue 9,233,492 100 763,749
Expenditures:
Current:
General government 1,725,871
Public safety 3,798,106 -
Public works 1,284,519 9,364 3,420
Parks, recreation and forestry 785,462 -
Conservation of natural resources 175,062
Community development 602,891
Capital outlay:
General government -
Public safety 7,890
Public works
Conservation of natural resources 2,151
Debt service:
Principal 300,000
Interest and fiscal charges 235,322
Total expenditures 8,381,952 535,322 9,364 3,420
Revenue over (under) expenditures 851,540 (535,322) (9,264) 760,329
Other financing sources (uses):
Transfer in
Transfer out
Sale of property
Issuance of debt
Premium on bonds issued
Payment to refunding bond escrow agent
Total other financing sources (uses)
Net increase (decrease) in fund balance
Fund balance -
Beginning of year
Fund balance - December 31
(612,699)
(612,699)
(100,000) (79,581)
(100,000) (79,581)
238,841 (535,322) (109,264) 680,748
5,387,964 (558,443) 4,304,023 2,898,162
$ 5,626,805 $ (1,093,765) $ 4,194,759 $ 3,578,910
The accompanying notes are an integral part of these basic financial statements.
27 --
Statement 5
Other Total
Governmental Governmental
Funds Funds
837,444 $ 8,403,543
243,945 243,945
330,138
567,082 1,176,863
383,747 851,270
175,485 780,044
127,203
113,322 225,677
26,841
323,309 476,151
2,644,334 12,641,675
4,519 1,730,390
3,798,106
605,108 1,902,411
160,359 945,821
10,170 185,232
495,791 1,098,682
215 215
94,277 102,167
178,405 178,405
2,151
1,566,000 1,866,000
807,561 1,042,883
3,922,405 12,852,463
(1,278,071) (210,788)
1,195,747 1,195,747
(335,345) (1,127,625)
20,600 20,600
1,170,000 1,170,000
10,980 10,980
(965,000) (965,000)
1,096,982 304,702
(181,089) 93,914
9,040,727 21,072,433
$ 8,859,638 $ 21,166,347
28
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES
Year Ended December 31, 2010
Statement 6
Net Change in Fund Balances -Total Governmental Funds $ 93,914
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities, assets are
capitalized and the cost is allocated over their estimated useful lives and reported as depreciation expense.
Capital outlays
Capital contributions to business -type funds
Loss on disposal of capital assets
Proceeds from sales of capital assets
Depreciation expense
The governmental funds report bond proceeds as financing sources, while repayment of bond principal is reported
as an expenditure. In the statement of net assets, however, issuing debt increases long -term liabilities and does not
affect the statement of activities and repayment of principal reduces the liability. Also, governmental funds report
the effect of issuance costs, premiums and discounts when debt is first issued, whereas these amounts are deferred
and amortized in the statement of activities. Interest is recognized as an expenditure in the governmental funds
when it is due. In the statement of activities, however, interest expense is recognized as it accrues, regardless of
when it is due. The net effect of these differences in the treatment of general obligation bonds and related items is
as follows:
$ 580,075
(75,200)
(21,332)
(20,600)
(2,953,780) (2,490,837)
Issuance of note payable (1,000,000)
Issuance of equipment certificates (170,000)
Bond premium (10,980)
Bond issuance costs 26,265
Repayment of bond principal 2,831,000
Change in accrued interest expense for general obligation bonds (22,067)
Amortization of bond issuance costs (39,083)
Amortization of bond premium 20,065
Amortization of bond discount (6,469)
Delinquent and deferred property taxes and special assessments receivable will be collected subsequent to year-
end, but are not available soon enough to pay for the current period's expenditures and, therefore, are deferred in
the governmental funds.
Deferred revenue - December 31, 2009 9,358,924
Deferred revenue - December 31, 2010
1,628,731
9,130,784 (228,140)
In the statement of activities, compensated absences and other post employment benefits are measured by the
amounts earned during the year. In the governmental funds, however, expenditures for these items are measured
by the amount of financial resources used (essentially, the amounts actually paid). During fiscal year 2010,
compensated absence payable and other post employment benefits payable increased. (15,790)
Change in Net Assets of Governmental Activities $ (1,012,122)
The accompanying notes are an integral part of these basic financial statements.
29
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS - PROPRIETARY FUNDS
December 31, 2010
Assets
Current assets:
Cash and cash equivalents
Accounts receivable
Due from other governmental units
Interfund receivable
Special assessments receivable
Due from county - special assessments
Prepaid items
Total current assets
Non - current assets:
Special assessments, long term
Inventory
Unamortized bond issue costs
-- Capital assets being depreciated:
Buildings
Equipment
Water and sewer systems
Total capital assets
Less: allowance for depreciation
Net capital assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Salaries payable
Deferred Revenue
Accrued interest payable
Bonds payable - current portion
_ Compensated absences payable - current portion
Total current liabilities
Non - current liabilities:
Bonds payable - long term
Compensated absences payable - long term
Total noncurrent liabilities
Total liabilities
Net assets
Invested in capital assets, net of related debt
Unrestricted
Total net assets
The accompanying notes are an integral part of these basic financial statements.
30
Water
$ 3,555,128
168,343
7,798
2,081
9,421
3,742,771
Sewer
$ 6,237,600
215,674
1,590
559,111
2,081
11,567
7,027,623
Statement 7
Total
2010
$ 9,792,728
384,017
1,590
559,111
7,798
4,162
20,988
10,770,394
28,448 28,448
27,576 27,576
4,468 4,468
48,690 48,690
122,811 341,392 464,203
19,784,263 21,258,093 41,042,356
19,955,764 21,599,485 41,555,249
(5,176,301) (5,936,313) (11,112,614)
14,779,463 15,663,172 30,442,635
14,839,955 15,663,172 30,503,127
18,582,726 22,690,795 41,273,521
27,488
5,680
208
11,941
390,000
14,316
449,633
404,174
6,236
410,410
860,043
10,156
5,683
14,316
30,155
6,236
6,236
36,391
37,644
11,363
208
11,941
390,000
28,632
479,788
404,174
12,472
416,646
896,434
13,985,289 15,663,172 29,648,461
3,737,394 6,991,232 10,728,626
$ 17,722,683 $ 22,654,404 $ 40,377,087
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - PROPRIETARY FUNDS
Year Ended December 31, 2010
Statement 8
Total
Water Sewer 2010
Operating revenue:
Charges for services $ 1,059,994 $ 1,491,728 $ 2,551,722
Hook -up charges 8,000 6,490 14,490
Water meter sales 8,698 8,698
Other operating revenue 10,321 - 10,321
Total operating revenue 1,087,013 1,498,218_ 2,585,231
Operating expenses:
Personal services 172,095 173,937 346,032
Materials and supplies 208,872 43,252 252,124
Contractual services 76,755 70,464 147,219
MCES sewer charges 681,591 681,591
Depreciation 426,861 445,956 872,817
Utilities 97,060 34,047 131,107
Other 28,640 17,600 46,240
Total operating expenses 1,010,283 1,466,847 2,477,130
Net income from operations 76,730 31,371 108,101
Other income (expense):
Investment earnings 37,249 67,521 104,770
Special assessments 6,216 2,493 8,709
Bond interest (29,858) (29,858)
Paying agent fees (5,760) (5,760)
Total other income (expense) 7,847 70,014 77,861
Net income before contributions and transfers 84,577 101,385 185,962
Contributions and transfers:
Capital contributions from primary government 57,200 18,000 75,200
Transfer out (34,061) (34,061) (68,122)
Total contributions and transfers 23,139 (16,061) 7,078
Change in Net Assets 107,716 85,324 193,040
Net Assets - January 1 17,614,967 22,569,080 40,184,047
Net Assets - December 31 $ 17,722,683 $ 22,654,404 $ 40,377,087
The accompanying notes are an integral part of these basic financial statements.
31
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
Year Ended December 31, 2010
Statement 9
Cash flows from operating activities:
Cash receipts from customers
Cash paid to suppliers
Cash paid to employees
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Net transfers
Net cash flows from noncapital financing activities
Cash flows from capital and related financing activities:
Principal paid on revenue bonds
Collection of special assessments
Interest and paying agent fees on revenue bonds
Net cash flows from (used) by capital and related
financing activities
Cash flows from investing activities:
Interest on investments
Net increase (decrease) in cash and cash equivalents
_ Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating income to net cash
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
Decrease (increase) in inventory
Increase (decrease) in payables
Net cash flows from operating activities
Noncash investing, capital, and financing activities:
Capital asset contributions from government
Moor
The accompanying notes are an integral parr of these basic financial statements.
32
Water
$ 1,104,291
(419,725)
(171,142)
513,424
(34,061)
(34,061)
(375,000)
17,164
(36,344)
(394,180)
37,249
122,432
3,432,696
$ 3,555,128
Sewer
$ 1,490,913
(863,689)
(172,792)
454,432
(34,061)
(34,061)
(694)
(694)
67,521
487,198
5,750,402
$ 6,237,600
Total
2010
$ 2,595,204
(1,283,414)
(343,934)
967,856
(68,122)
(68,122)
(375,000)
16,470
(36,344)
(394,874)
104,770
609,630
9,183,098
$ 9,792,728
$ 76,730 $ 31,371 $ 108,101
426,861 445,956 872,817
17,070 (7,306) 9,764
233 2 235
15,299 - 15,299
(22,769) (15,591) (38,360)
$ 513,424 $ 454,432 $ 967,856
$ 57,200 $ 18,000 $ 75,200
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS - FIDUCIARY FUNDS - AGENCY FUNDS
December 31, 2010
Statement 10
Assets
Cash and investments
Deposits receivable
Total assets
Liabilities
Accounts payable
Deposits payable
Total liabilities
The accompanying notes are an integral part of these financial statements.
33
2010
$ 753,507
750
$ 754,257
$ 13,054
741,203
$ 754,257
Amy
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
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.
AMER
The basic financial statements of the City of Lino Lakes have been prepared in conformity with U.S. generally
accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board
(GASB). The following is a summary of the significant accounting policies:
Mow
IMEM
A. FINANCIAL REPORTING ENTITY
As required by U.S. generally accepted accounting principles, the financial statements of the reporting
entity include those of the City of Lino Lakes and its component units. A component unit is a legally
separate entity for which the primary government is financially accountable, or for which the exclusion of
the component unit would render the financial statements of the primary government misleading. The
criteria used to determine if the primary government is financially accountable for a component unit
include whether or not the primary government appoints the voting majority of the potential component
unit's board, is able to impose its will on the potential component unit, is in a relationship of financial
benefit or burden with the potential component unit, or is fiscally depended upon by the potential
component unit.
COMPONENT UNITS
In conformity with U.S. generally accepted accounting principles, the financial statements of component
units have been included in the financial reporting entity either as blended component units or as discretely
presented component units.
Blended Component Units
The Economic Development Authority (EDA) of Lino Lakes is an entity legally separate from the City.
However, for financial reporting purposes, the EDA is reported as if it were part of the City's operations
because the members of the City Council serve as commission members. The EDA does not issue separate
financial statements. The Housing and Redevelopment Authority (HRA) of Lino Lakes is an entity legally
separate from the City. However, for financial reporting purposes, the HRA is reported as if it were part of
the City's operations because the members of the City Council serve as commission members. The HRA
has not yet incurred any financial activity.
B. BASIC FINANCIAL STATEMENTS
1. Government -Wide Statements
The government -wide financial statements (i.e., the statement of net assets and the statement of activities)
display information about the primary government and its component units. These statements include the
financial activities of the overall City government, except for fiduciary activities. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately from
business -type activities, which rely to a significant extent on fees and charges to external parties for
support. As a general rule, the effect of interfund activity has been eliminated from the government -wide
financial statements. Exceptions to this general rule are charges between the City's enterprise funds and
various other functions of government. Eliminations of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. BASIC FINANCIAL STATEMENTS (CONTINUED)
1. Government -Wide Statements (Continued)
In the government -wide statement of net assets, both the governmental and business -type activities
columns: (a) are presented on a consolidated basis by column; and (b) are reported on a full accrual,
economic resource basis, which recognizes all long -term assets and receivables as well as long -term debt
and obligations. The City's net assets are reported in three parts: (1) invested in capital assets, net of related
debt; (2) restricted net assets; and (3) unrestricted net assets. The City first utilizes restricted resources to
finance qualifying activities.
The statement of activities demonstrates the degree to which the direct expenses of each function of the
City's governmental activities and different business -type activities are offset by program revenues. Direct
expenses are those that are clearly identifiable with a specific function or activity. Program revenues
include: (1) fees, fines, and charges paid by the recipients of goods, services, or privileges provided by a
given function or activity; and (2) grants and contributions that are restricted to meeting the operational or
capital requirements of a particular function or activity. Revenues that are not classified as program
revenues, including all taxes, are presented as general revenues.
2. Fund Financial Statements
The fund financial statements provide information about the City's funds, including its fiduciary funds and
blended component unit. Separate statements for each fund category (governmental, proprietary, and
fiduciary) are presented. The emphasis of governmental and proprietary fund financial statements is on
major individual governmental and enterprise funds, with each displayed as separate columns in the fund
financial statements. All remaining governmental and enterprise funds are aggregated and reported as
nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each party
receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment
earnings, result from nonexchange transactions or incidental activities.
The City reports the following major governmental funds:
General Fund
The general fund is the City's primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
General Obligation Improvement Bonds 2005A Fund
The general obligation improvement bonds 2005A fund accounts for the accumulation of resources for,
and the payment of, interest, principal and related costs on general long -term debt.
I35E Interchange Fund
The I35E interchange fund accounts for the activity related to the I35E /CSAH 14 Interchange
Reconstruction Project.
Area and Unit Charge Fund
The area and unit charge fund accounts for the collection of water and sewer unit charges to be used for
debt payments and construction of infrastructure.
35
OWN
EINEM
MOM
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. BASIC FINANCIAL STATEMENTS (CONTINUED)
2. Fund Financial Statements (Continued)
The City reports the following major proprietary funds:
Water Fund
The water fund accounts for customer water service charges that are used to finance water operating
expenses.
Sewer Fund
The sewer fund accounts for customer water service charges that are used to finance water operating
expenses.
Additionally, the City reports the following fiduciary funds:
Agency Funds - to account for assets held as an agent for individuals, private organizations, other
governmental units, and/or other funds. The City's agency fund accounts for pass - through contractor's
deposits relating to prospective developments.
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
The government -wide and proprietary fund financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Agency funds, which are included in the Fiduciary
Funds, do not have a measurement focus. Revenues are recorded when earned, and expenses are recorded
when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon
as all eligibility requirements imposed by the provider have been met.
Private - sector standards of accounting and financial reporting issued on or before November 30, 1989,
generally are followed in both the government -wide and proprietary fund financial statements to the extent
that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards
Board. Governments also have the option of following subsequent private- sector guidance for their
business -type activities and enterprise funds, subject to this same limitation. The City has elected not to
follow subsequent private- sector guidance.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. The City considers all revenues to be available if they are collected within 60
days after the end of the current period. Property and other taxes, licenses, and interest are all considered to
be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for
principal and interest on general long -term debt, compensated absences, and claims and judgments, which
are recognized as expenditures to the extent that they have matured. Proceeds of general long -term debt
and acquisitions under capital leases are reported as other financing sources. When both restricted and
unrestricted resources are available for use, it is the City's policy to use restricted resources first, then
unrestricted resources as they are needed.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (CONTINUED)
Amounts reported as program revenues include: 1. Charges to customers or applicants for goods, services,
or privleges provided, 2. operating grants and contributions, and 3. capital grants and contributions,
including special assessments.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenue of the
City's enterprise funds are charges to customers for sales and services. Operating expenses for enterprise
funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
D. BUDGETS
Budgets are adopted on a basis consistent with U.S. generally accepted accounting principles. Annual
appropriated budgets are adopted for the General Fund and the Program Recreation Special Revenue Fund.
Budgeted 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.
E. LEGAL COMPLIANCE — BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The City Administrator submits to the City Council a proposed operating budget (including the
General Fund and Program Recreation Special Revenue Fund) for the fiscal year commencing the
following January 1. The operating budget includes proposed expenditures and the means of financing
them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can be
expended by each department based upon detailed budget estimates for individual expenditure
accounts.
4. The City Administrator is authorized to transfer appropriations within any department budget.
Additional interdepartmental or interfund appropriations and deletions are or may by authorized by the
City Council with fund (contingency) reserves or additional revenues.
5. Formal budgetary integration is employed as a management control device during the year for the
General Fund.
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for the
Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and
calculate user charges. These debt service and budget amounts represent general obligation bond
indenture provisions and net income for operation and capital maintenance and are not reflected in the
financial statements.
37
MOO
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. LEGAL COMPLIANCE — BUDGETS (CONTINUED)
7. A capital improvement program is reviewed periodically by the City Council for the Capital Project
Funds. However, appropriations for major projects are not adopted until the actual bid award of the
improvement. The appropriations are not reflected in the financial statements.
8. Expenditures may not legally exceed budgeted appropriations at the department level unless approved
by the City Council. Therefore, the legal level of budgetary control is at the department level (i.e.
administration, community development, public safety, public services, and other).
9. The City Council may authorize transfers 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 in the governmental fund
financial statements, and an interfund payable in the fund with the deficit, until adequate resources are
received. These interfund payables are eliminated for statement of net assets presentation.
Investments are stated at fair value and interest earnings are accrued at year -end.
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.
Permanently restricted cash and investments represents the principal portion of resources received that
must be retained in a permanent fund. Only earnings from these funds may be used for purposes that
support environmental maintenance and improvements.
G. PROPERTY TAX CREDITS
Property taxes on homestead property (as defined by State Statutes) are partially reduced by property tax
credits. These credits are paid to the City by the State in lieu of taxes levied against homestead property.
The State remits these credits through installments each year. These credits are recognized as revenue by
the City at the time of collection.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December (levy /assessment
date) of each year for collection in the following year. The County is responsible for billing and collecting
all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes
become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are
payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are
payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County
and remitted to the City on or before July 15 and December 15 of the same year. Delinquent collections for
November and December are received the following January. The City has no ability to enforce payment of
property taxes by property owners. The County possesses this authority.
Within the governmental fund financial statements, 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. Deferred revenue in governmental activities is susceptible to full accrual on the government -
wide statements.
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 2010 totaled $1,072,396. Receipt of
property taxes from this "fiscal disparities pool" does not increase or decrease total tax revenue.
I. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of special
assessment improvement projects in accordance with State Statutes. These assessments are collectible by
the City over a term of years usually consistent with the term of the related bond issue. Collection of
annual installments (including interest) is handled by the County Auditor in the same manner as property
taxes. Property owners are allowed to (and often do) prepay future installments without interest or
prepayment penalties.
Within the fund financial statements, the 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 funds are completely offset by
deferred revenues. Deferred revenue in governmental activities is susceptible to full accrual on the
government -wide statements.
39
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
I. SPECIAL ASSESSMENT REVENUE RECOGNITION (CONTINUED)
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.
J. INVENTORIES
The original cost of materials and supplies has been recorded as expenditures /expenses at the time of
purchase in both the Governmental and Proprietary Funds. These funds do not maintain material amounts
of materials and supplies.
K. INTERFUND RECEIVABLES/PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods provided
or services rendered. The year -end balances are classified as interfund receivables and payables on the
governmental fund balance sheets. The non - current portion of interfund loans are reported as "advances
to /from other funds." Advances between funds are offset by a fund balance reserve account in applicable
governmental funds to indicate they are not available for appropriation and are not expendable from
available financial resources.
L. CAPITAL ASSETS
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, sidewalks,
street lights, and similar items) are reported in the applicable governmental or business -type activities
columns in the government -wide financial statements. Capital assets exceeding the City's capitalization
threshold of $2,500 are recorded at historical cost or estimated historical cost if purchased or constructed.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects
are constructed. All existing City infrastructure has been capitalized regardless of date placed in service.
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with
accumulated depreciation reflected in the Statement of Net Assets. Capital assets are depreciated using the
straight -line method over their estimated useful lives. Since surplus assets are sold for an immaterial
amount when declared as no longer needed for City purposes, no salvage value is taken into consideration
for depreciation purposes. Useful lives vary from 3 to 30 years for Buildings, Office Furniture and
Equipment, Vehicles, Machine Shop and Equipment and Other assets, and 25 to 50 years for Infrastructure.
Capital assets not being depreciated include land and construction in progress.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits.
All vacation pay and the portion of sick pay allowable as severance pay is accrued as incurred in the
government -wide and proprietary fund financial statements. The current portion is calculated based on
historical trends.
N. LONG -TERM OBLIGATIONS
In the entity -wide financial statements, long -term debt and other long -term obligations are reported as
liabilities in the applicable governmental activities. Bond premiums and discounts are deferred and
amortized over the life of the bonds using the straight -line method. Bond issue costs, if material, are
amortized over the term of the related debt using the straight -line method.
In the governmental fund financial statements, bond premiums and discounts, as well as bond issue costs
are recognized during the current period. The face amount of the debt issue is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources while discounts are
reported as other financing uses. Issue costs are reported as debt service expenditures.
O. FUND EQUITY
In the governmental fund financial statements, reservations of fund balance represent those portions of
fund equity not appropriable for expenditure or legally restricted by outside parties for use for a specific
purpose. Designated fund balances represent tentative plans for future use of financial resources that are
subject to change.
P. INTERFUND TRANSACTIONS
Interfund services provided and used 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 or expenses in the fund that is reimbursed. All other interfund transactions
are reported as transfers.
All Interfund transactions are eliminated except for activity between governmental activities and business-
type activities for presentation in the entity -wide statements of net assets and statements of activities.
41
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 2 DEPOSITS AND INVESTMENTS
Components of Cash and Investments
Cash and investments at year -end consists of the following:
Deposits $ 5,217,160
Investments 22,228,742
Cash with Fiscal Agent 4,271,142
Cash on Hand 820
Total $ 31,717,864
Cash and investments are presented in the financial statements as follows:
Cash and Investments - Statement of Net Assets $ 26,693,215
Cash and Investments with Escrow Agent - Statement of Net Assets 4,271,142
Cash and Investments - Statement of Net Assets - Fiduciary Funds 753,507
Total $ 31,717,864
A. Deposits
The City maintains a cash and investment pool that is available for use by all funds. Each fund type's
portion of this pool is displayed on the statement of net assets and the balance sheet as "Cash and
Investments." In accordance with Minnesota Statutes the City maintains deposits at financial institutions
which are authorized by the City Council.
Custodial Credit Risk — Custodial credit risk for deposits is the risk that in the event of a bank failure, the
City's deposits may not be returned to it. The City does not have a specific deposit policy for custodial
credit risk but rather follows Minnesota Statutes for deposits. Minnesota Statutes require that all 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 corporate surety bonds. Authorized collateral include:
U.S. government treasury bills, notes, or bonds; issues of a U.S. government agency; general obligations of
a state or local government rated "A" or better; revenue obligations of a state or local government rated
"AA" or better; irrevocable standby letter of credit issued by a Federal Home Loan Bank; and time deposits
insured by a federal agency. Minnesota statutes require securities pledged as collateral be held in
safekeeping in a restricted account at the Federal Reserve Bank or at an account at a trust department of a
commercial bank or other financial institution not owned or controlled by the depository.
The carrying value and bank balance of the City's deposits in banks at December 31, 2010 is $5,217,160
and $5,260,793, respectively, and were entirely covered by federal depository insurance or by surety bonds
and collateral in accordance with Minnesota statutes.
Cash with Fiscal Agent — Unspent proceeds from the Note Payable to Anoka County of $4,271,142 are
presented as cash with fiscal agent and held by Anoka County. See Note 4.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments
The City may also invest idle funds as authorized by Minnesota Statutes as follows:
• Direct obligations or obligations guaranteed by the United States or its agencies
• Shares of investment companies registered under the Federal Investment Company Act of 1940 and
received the highest credit rating, is rated in one of the two highest rating categories by a statistical
rating agency, and all of the investments have a final maturity of thirteen months or less
• General obligations rated "A" or better; revenue obligations rated "AA" or better
• General obligations of the Minnesota Housing Finance Agency rated "A" or better
• Banker's acceptances of United States banks eligible for purchase by the Federal Reserve System
• Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of
highest quality category by a least two nationally recognized rating agencies, and maturing in 270 days
or less
• Guaranteed investment contracts guaranteed by United States commercial banks or domestic branches
of foreign banks or United States insurance companies if similar debt obligations of the issuer or the
collateral pledged by the issuer is in the top two rating categories
• Repurchase or reverse purchase agreements and securities lending agreements financial institutions
qualified as a "depository" by the government entity, 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, or certain Minnesota securities
broker - dealers
Investments Held with Broker —
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value
to changes in market interest rates. The City's policy to minimize interest rate risk includes investing
primarily in short-term securities and structuring the investment portfolio so that securities mature to meet
cash requirements for ongoing operations. Information about the sensitivity of the fair values of the City's
investments to market interest rate risk fluctuations is provided by the following table that shows the
distribution of the City's investments by maturity:
12 Months 13 to 24 25 to 60 More than
Type Total or Less Months Months 60 Months
Minnesota Municipal Money
Market Trust Fund $ 2,563,407 $ 2,563,407 $ $ $
Federal Farm Credit Banks 100,426 - 100,426 -
Federal Home Loan Bank 3,129,816 - 1,498,114 1,631,702
Federal Home Loan Mortgage Corp. 2,001,358 - 1,249,991 751,367
Federal National Mortgage Assn. 2,600,771 - 2,152,758 448,013
Negotiable CDs 8,399,720 8,399,720 - - -
Municipal Bonds 3,158,829 200,000 1,536,246 828,291 594,292
Mutual Fund 274,415 274,415 - - -
Total $ 22,228,742 $ 11,437,542 $ 1,536,246 $ 5,829,580 $ 3,425,374
43
�— CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. The City's policy to minimize credit risk includes limiting investing funds to those
allowable under Minnesota Statute 118A, annually appointing all financial institutions where investments
are held, and diversifying the investment portfolio. This is measured by the assignment of a rating by a
nationally recognized statistical rating organization. The following chart summarizes year -end ratings for
the City's investments as rated by Moody's Investors Service:
Credit
Type Quality Rating Amount
Minnesota Municipal Money Market Trust Fund Aa2 $ 2,563,407
Federal Farm Credit Banks Aaa 100,426
Federal Home Loan Bank Aaa 3,129,815
Federal Home Loan Mortgage Corp. Aaa 2,001,358
Federal National Mortgage Assn. Aaa 2,600,772
Negotiable CDs Not Rated 8,399,720
Municipal Bonds A -Aaa 3,158,829
Mutual Fund Not Rated 274,415
Total $ 22,228,742
The Minnesota Municipal Money Market Fund Trust is a common law trust organized in accordance with
the Minnesota Joint Powers Act, which invests only in investment instruments allowable under Minnesota
statutes as described on the previous page. Its investments are valued at amortized cost, which
approximates market value in accordance with Rule 2a -7 of the Investment Company Act of 1940. The
amortized cost method of valuation values a security at its cost on the date of purchase and thereafter
assumes a constant amortization to maturity of any discount or premium, regardless of the impact of
fluctuating interest rates on the fair value of instruments.
The Minnesota Municipal Money Market Trust Fund does not have its own credit rating. MBIA, Inc., who
administers the Minnesota Municipal Money Market Fund Trust holds an organization credit rating of Aa2.
For an investment, custodial credit risk is the risk that, in the event of failure of the counterparty, the City
will not be able to recover the value of its investment or collateral securities that are in the possession of an
outside party. The City's investment policy doesn't specifically address custodial credit risk.
Concentration of Credit Risk
The City places no limit on the amount that it may invest in any one issuer. The following is a list of
investments which individually comprise more than 5% of the City's total investments:
Type Amount Percentage
Federal Home Loan Bank $ 3,129,815 22.63%
Federal Home Loan Mortgage Corporation 2,001,358 14.47%
Federal National Mortgage Association 2,600,772 18.81%
Minnesota Municipal Money Market Trust Fund 2,563,407 18.54%
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2010 was as follows:
Governmental Activities:
Capital Assets, Not Being Depreciated:
Land
Total Capital Assets, Not Being Depreciated
Capital Assets, Being Depreciated:
Buildings
Office Equipment and Furniture
Vehicles
Machinery and Shop Equipment
Other Equipment
Infrastructure
Total Capital Assets, Being Depreciated
Accumulated Depreciation for:
Buildings
Office Equipment and Furniture
Vehicles
Machinery and Shop Equipment
Other Equipment
Infrastructure
Total Accumulated Depreciation
Total Capital Assets, Being Depreciated, Net
Govemmental Activities Capital Assets, Net
Beginning
Balance
$ 2,809,059
2,809,059
6,499,752
1,133,717
2,348,963
639,702
980,308
75,473,297
87,075,739
(2,554,028)
(725,203)
(984,364)
(455,268)
(669,227)
(40,055,644)
(45,443,734)
41,632,005
$ 44,441,064
Depreciation expense was charged to govemmental functions as follows:
Governmental Activities:
General Govemment
Public Safety
Public Services
Parks, Recreation and Forestry
Conservation of Natural Resources
Community Development
Total Depreciation Expense, Govemmental Activities
Business -Type Activities:
Capital Assets, Not Being Depreciated:
Construction in Progress
Total capital assets, not being depreciated
Capital Assets, Being Depreciated:
Buildings
Machinery and Shop Equipment
Water and Sewer Lines
Total Capital Assets, Being Depreciated
Accumulated Depreciation for:
Buildings
Machinery and Shop Equipment
Water and Sewer Lines
Total Accumulated Depreciation
Total Capital Assets, Being Depreciated, Net
Business -Type Capital Assets, Net
Beginning
Balance
Increases
Decreases
$ $
Ending
Balance
$ 2,809,059
2,809,059
6,499,752
29,855 (2,683) 1,160,889
118,588 (119,440) 2,348,111
116,532 (62,669) 693,565
980,308
239,900 75,713,197
504,875 (184,792) 87,395,822
(217,034)
(77,696)
(255,494)
(30,616)
(39,206)
(2,333,734)
(2,953,780)
(2,448,905)
$ (2,448,905)
$ 249,191
123,222
2,410,348
170,169
350
500
$ 2,953,780
Increases
(2,771,062)
2,684 (800,215)
115,108 (1,124,750)
25,068 (460,816)
(708,433)
(42,389,378)
142,860 (48,254,654)
(41,932) 39,141,168
$ (41,932) $ 41,950,227
Decreases
Ending
Balance
$ 13,054 $ - $ (13,054) $
13,054 (13,054)
48,690
464,203
40,954,102 88,254
41,466,995 88,254
(48,690) -
(250,309) (31,546)
(9,940,798) (841,271)
(10,239,797) (872,817)
31,227,198 (784,563)
48,690
464,203
41,042,356
41,555,249
(48,690)
(281,855)
(10,782,069)
(11,112,614)
30,442,635
$ 31,240,252 $ (784,563) $ (13,054) $ 30,442,635
45
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 4 CITY INDEBTEDNESS
City indebtedness at December 31, 2010 is composed of the following:
Final
Issue Maturity Interest Original
Date Date Rate Issue
Payable
12/31/2010
Governmental Activities:
General Obligation Bonds:
2008A Equipment Certificates 2/1/2008 12/31/2011 4.00% $ 209,000 $ 74,000
2009A Equipment Certificates 4/1/2009 12/31/2012 3.00% 336,000 232,000
2010A Equipment Certificates 4/1/2010 12/31/2013 2.00% -3.00% 170,000 170,000
G.O. Tax Abatement Bonds, Series 2006C 8/15/2006 2/1/2023 4.00% -4.30% 2,460,000 2,460,000
G.O. Utility Revenue Bonds, Series 2006D 8/15/2006 2/1/2017 4.00% -4.15% 570,000 420,000
G.O. CIP Refunding Bonds, Series 2006E 11/1/2006 2/1/2018 4.00% 2,990,000 2,910,000
G.O. Tax Increment Financing Bonds, Series 2007A 7/15/2007 2/1/2024 4.00 % - 4.125% 4,215,000 3,875,000
Total General Obligation Bonds 10,950,000 10,141,000
Special Assessment Bonds:
G.O. Improvement Bonds, Series 2002A 8/1/2002 2/1/2013 3.00% -4.10% 645,000 85,000
G.O. Improvement Bonds, Series 2002B 8/1/2002 2/1/2013 3.20% -5.55% 2,110,000 750,000
G.O. Improvement Refunding Bonds, Series 2003A 12/1/2003 2/1/2019 2.00%-4.25% 2,090,000 605,000
G.O. Improvement Bonds, Series 2003B 12/1/2003 2/1/2014 3.20%-5.60% 250,000 125,000
G.O. Improvement Bonds, Series 2005A 11/1/2005 2/1/2021 4.35% -5.15% 5,550,000 4,495,000
G.O. Improvement Refunding Bonds, Series 2005B 11/1/2005 2/1/2015 3.75% -5.00% 3,755,000 2,115,000
G.O. Improvement & Utility Revenue Refunding Bonds, Series
2010A 7/9/2010 2/1/2020 2.00%-3.00% 1,000,000 1,000,000
Total Special Assessment Bonds 15,400,000 9,175,000
Total Bonds 26,350,000 19,316,000
Note Payable - Anoka County 8/1/2009 8/1/2024 4.00% -3.70% 4,260,000 4,260,000
Unamortized Bond Discounts (45,490) (30,091)
Unamortized Bond Premiums 202,370 102,101
Compensated Absences Payable N/A 625,121
Other Post Employment Benefit Plan N/A 63,287
Total Govemmental Activities $ 30,766,880 $ 24,336,418
Business -Type Activities:
Revenue Bonds:
G.O. Water Revenue Refunding Bonds, Series 2006F 11/1/2006 2/1/2012 3.55 % - 3.625% $ 1,740,000 $ 795,000
Total Revenue Bonds 1,740,000 795,000
Unamortized Bond Discounts (4,002) (826)
Compensated Absences Payable N/A 41,104
Total Business -Type Activities $ 1,735,998 $ 835,278
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 4 CITY INDEBTEDNESS (CONTINUED)
The following is a schedule of changes in City indebtedness for the year ended December 31, 2010:
Payable Payable Due Within
12/31/2009 Issues Payments 12/31/2010 One Year
Governmental activities:
Bonded debt:
General Obligation $ 10,712,000 $ 170,000 $ 741,000 $ 10,141,000 $ 840,000
Special Assessment 10,265,000 1,000,000 2,090,000 9,175,000 1,190,000
Unamortized Bond Discounts (36,560) (6,469) (30,091)
Unamortized Bond Premiums 111,186 10,980 20,065 102,101 -
Note Payable - Anoka County 4,260,000 4,260,000
Compensated Absences Payable 627,884 547,346 550,109 625,121 399,475
Other Post Employment Benefit Plan 44,734 40,404 21,851 63,287
Total Governmental Activities 25,984,244 1,768,730 3,416,556 24,336,418 2,429,475
Business -Type Activities:
Revenue Bonds 1,170,000 375,000 795,000 390,000
Unamortized Bond Discounts (1,588) (762) (826) -
Compensated Absences Payable 35,820 37,050 31,766 41,104 28,632
Total Business -Type Activities 1,204,232 37,050 406,004 835,278 418,632
Total $ 27,188,476 $ 1,805,780 $ 3,822,560 $ 25,171,696 $ 2,848,107
All long -term bonded indebtedness outstanding at December 31, 2010 is backed by the full faith and credit of the
City, including special assessment bond issues. For the governmental activities, compensated absences are generally
liquidated by the general fund.
Minimum annual principal and interest payments required to retire long -term debt, not including compensated
absences payable are as follows.
Governmental Activities Business -Type Activities
Principal Interest Principal Interest Total
Years ending December 31,
2011 $ 2,030,000 $ 955,755 $ 390,000 $ 21,701 $ 3,397,456
2012 2,106,000 860,771 405,000 7,341 3,379,112
2013 2,135,000 768,348 - 2,903,348
2014 1,890,000 678,901 2,568,901
2015 2,260,000 599,184 2,859,184
2016 -2020 8,845,000 1,853,139 10,698,139
2021 -2024 4,310,000 562,898 4,872,898
Total $ 23,576,000 $ 6,278,996 $ 795,000 $ 29,042 $ 30,679,038
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.
47
UMW
IMMIM
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 4 CITY INDEBTEDNESS (CONTINUED)
In December 2009, the City of Lino Lakes entered into a joint powers agreement for a note payable with Anoka
County for $4,260,000. The note payable with Anoka county is for the reconstruction of County State Aid Highway
14 (Main Street) and I -35E Interchange County Project.
In June 2010, the City issued $1,000,000 in General Obligation Improvement and Utility Revenue Refunding Bonds
for a net interest cost of 2.65% to complete a current refunding of the outstanding 2004A General Obligation
Improvement and Utility Revenue Bonds totaling $965,000. The $1,000,000 is being funded by special assessments
related to the imporvement project that the City has collected. The current refunding resulted in a cash flow savings
of $34,805 with a net present value of $31,415. The original bonds had been issued to fund various assessable
public projects from 2004, and were called on June 1, 2010.
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. For the governmental activities,
compensated absences are generally liquidated by the general fund. The liability for Proprietary Fund employees is
included in the accrued liabilities of those funds.
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 Lakes' legal debt margin for 2010 is computed as follows:
12/31/10
Market value $ 2,001,889,600
Applicable percentage 3.0%
Debt Limit 60,056,688
Amount of debt applicable to debt limit:
_ Total bonded debt 20,111,000
Less: Special assessment bonds (9,175,000)
Tax abatement bonds (2,460,000)
Utility revenue bonds (420,000)
Tax increment financing bonds (3,875,000)
Revenue bonds (795,000)
Total debt applicable to debt limit 3,386,000
Legal debt margin $ 56,670,688
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 6 DEFINED BENEFIT PENSION PLANS - STATEWIDE
A. PLAN DESCRIPTION
All full -time and certain part-time employees of the City of Lino Lakes are covered by defined benefit
pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire
Fund (PEPFF) which are a cost - sharing, multiple - employer retirement plan. This plan is established and
administered in accordance with Minnesota Statutes, Chapter 353 and 356.
GERF 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 PERA's Coordinated and Basic Plan members. The retiring
member receives the higher of step -rate benefit accrual formula (Method 1) or a level accrual formula
(Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary
for each of the first 10 years of service and 2.7% for each remaining year. The annuity accrual rate for a
Coordinated Plan member is 1.2% of average salary for each of the first 10 years and 1.7% for each
remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan
members and 1.7% for Coordinated Plan members for each year of service. For PEPFF members, the
annuity accrual rate is 3.0% for each year of service.
For GERF and PEPFF members hired prior to July 1, 1989 whose annuity is calculated using Method 1, a
full annuity is available when age plus years of service equal 90. Normal retirement age is 65 for Basic and
Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social
Security benefits capped at 66 for coordinated members hired on or after July 1, 1989. 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 single -life 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 be 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 GERF and PEPFF. That report may be obtained on the interne at
www.mnpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103 -2088 or by
calling (651) 296 -7460 or 1- 800 - 652 -9026.
49
lower
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 6 DEFINED BENEFIT PENSION PLANS — STATEWIDE (CONTINUED)
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. GERF Basic Plan members and Coordinated Plan members
are required to contribute 9.10% and 6.0% respectively, of their annual covered salary. PEPFF members
were required to contribute 9.4% of their annual covered salary in 2010. The City is required to contribute
the following percentages of annual covered payroll: 11.78% for Basic Plan members, 7.00% for
Coordinated Plan members, and 14.1% for PEPFF members. The City's contributions to the General
Employees Retirement Fund for the years ended December 31, 2010, 2009, and 2008 were $177,081,
$186,454, and $183,456, respectively. The City's contributions to the Public Employees Police & Fire
Fund for the years ended December 31, 2010, 2009, and 2008 were $280,046, $303,949, and $268,569,
respectively. The City's contributions were equal to the contractually required contributions for each year
as set by state statute.
Note 7 METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES
During 1971, the Metropolitan Waste Control Commission (MWCC) was organized to provide for consolidation of
the sanitary sewer collection, treatment and disposal in the seven county metropolitan area surrounding Minneapolis
and St. Paul. Previously, these operations were maintained by the city governments on an individual or collective
MOM basis. The MWCC merged with the Metropolitan Council during 1994 to form Metropolitan Council Wastewater
Services (MCWS) and is now called the Metropolitan Council Environmental Services (MCES). The MCES bills
the City annually based upon estimated volume and budgeted costs. The City follows the accounting policy of
recognizing these charges as an expense of the sewer utility operation in the year for which they are billed.
Note 8 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY
A. Deficit Fund Balances
The City has deficit fund balances at December 31, 2010 as follows:
Fund Balance
Deficit
Dedicated Parks $ (591,912)
Tax Increment Financing 1 -11 (764,646)
G.O. Improvement Bonds 2005A (1,093,765)
Traffic Control (5,838)
The City intends to fund these deficits through future tax levies, special assessment levies, tax increments,
transfers from other funds, and various other sources.
B. Expenditures in Excess of Budget
The following is a listing of expenditure categories that exceed budget appropriations for non -major funds:
Budget
Actual Excess
Program Recreation Special Revenue Fund:
Supplies $ 44,230 $ 66,336 $ (22,106)
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 9 CONTINGENCIES
Tax Increment Districts — The City's tax increment districts are subject to review by the State of Minnesota Office
of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the
applicable fund. Management has indicated that they are not aware of any instances of noncompliance which could
have a material effect on the financial statements.
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, 2010.
Note 10 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
General Obligation bond issues sold by the City are financed by ad valorem tax levies and special assessment bond
issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied
against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies
is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is
notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to
cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy
any additional taxes found necessary for full payment of principal and interest.
These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31,
2010.
Future scheduled tax levies for all bonds outstanding at December 31, 2010 totaled $21,386,182.
Note 11 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY
At December 31, 2010, 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, 2010 are shown on the
various balance sheets as segregations of the fund equity. A summary of such designations and reservations at
December 31, 2010 is as follows:
Governmental Activity:
General Fund:
Reserved for Prepaid Items $ 181,471
Designated for Cash Flow Reserve 5,445,334
I35E Interchange :
Designated for Capital Improvements 4,194,759
Area and Unit Charge:
Reserved for Advance to Other Funds 658,875
Designated for Capital Improvements 2,920,035
Other Nonmajor Governmental Funds:
Reserved for Prepaid Items 2,342
Reserved for Debt Retirement 2,986,102
Reserved for Environmental Improvements 100,000
Reserved for Long -Term Notes Receivable 225,000
Designated for Recreation Purposes 110,471
Designated for Capital Improvements 5,651,180
51
Iftwo
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 12 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 during fiscal year 2010 was
$93,991.
Note 13 INTERFUND RECEIVABLE AND PAYABLES
The purpose of the interfund receivable and payable balances is for the elimination of negative cash between funds
and at December 31, 2010 are as follows:
Governmental Activity:
G.O. Improvement Bonds 2005A
I35E Interchange
Other Nonmajor Governmental Funds
Business -Type Activity:
Sewer Fund
Receivable
$
■
1,376,681
559,111
Payable
$ 1,093,765
76,250
765,777
$ 1,935,792 $ 1,935,792
Interfund receivable and payable balances not expected to be repaid within one year are reported as advances to and
from other fund and at December 31, 2010 are as follows:
Receivable Payable
Governmental Activity:
Area and Unit Charge $ 658,875 $ -
Other Nonmajor Governmental Funds - 658,875
$ 658,875 $ 658,875
The purpose of the advance from the Area and Unit Charge Fund is to temporarily finance projects in the Dedicated
Parks Fund.
Note 14 INTERFUND TRANSFERS
Individual fund transfers for fiscal year 2010 are as follows:
Transfer In Transfer Out
Governmental Activity:
General Fund $ $ (612,699)
Area and Unit Charge (79,581)
I35E Interchange (100,000)
Other Nonmajor Governmental Funds 1,195,747 (335,345)
Total Governmental Activity 1,195,747 (1,127,625)
Business -Type Activity:
-- Water Fund (34,061)
Sewer Fund (34,061)
Total Business -Type Activity (68,122)
Total $ 1,195,747 $ (1,195,747)
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 14 INTERFUND TRANSFERS (CONTINUED)
Interfund transfers are other financing sources and uses within the fund financial statements. The purpose of the
transfers is to provide funding for capital improvement projects, capital outlay, and debt service as well as to open
and close funds.
In addition to the above transfers, the governmental activities contributed $75,200 of capital assets to the Water and
Sewer funds. These are presented as transfers in the government -wide financial statements and as capital
contributions in the Water and Sewer funds.
Note 15 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.
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 16 CONDUIT DEBT OBLIGATIONS
The City has issued Industrial Development Revenue Bonds and Commercial Revenue Notes 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, 2010, two series of Industrial Revenue Bonds were outstanding with aggregate
remaining principal balances of $875,000 and $800,000, respectively, and one series of Commercial Revenue Notes
was outstanding with an aggregate remaining principal balance of $2,824,585.
53
mow
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 17 LEASE COMMITMENT
The City of Lino Lakes entered into an agreement dated December 8, 1997 to lease space within the City Hall
complex to the Independent School District No. 12 (ISD 12). The lease term has been renewed as of July 1, 2009
and continues through June 30, 2011 and requires payments of $110 per square foot over the lease term for a total
of $300,000. The schedule of remaining payments is as follows:
2011
The prorated carrying value of the building being leased is as follows:
Amount
$ 60,000
Building $ 929,970
Less: Accumulated Depreciation (340,989)
Net $ 588,981
Note 18 JOINT VENTURES
Fire
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 2010, the City of Lino Lakes' contributions to the District were as follows:
Operating $ 516,044
Capital 69,600
Total $ 585,644
Separate financial statements of the District can be obtained by contacting the Centennial Fire District.
The audited condensed financial statements of the District as of December 31, 2010 are as follows:
Total Assets $ 1,397,901
Total Liabilities 110,738
Total Net Assets 1,287,163
Total Operating Revenue 883,195
Total Operating Expenses 804,603
Anoka County
The City of Lino Lakes has a joint powers agreement with Anoka County for the reconstruction of County State Aid
Highway 14 (Main Street) and I -35E Interchange County Project.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 19 OTHER POSTEMPLOYMENT BENEFIT PLAN
At December 31, 2008, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. The City
engaged an actuary to determine the City's liability for postemployment healthcare benefits other than pensions as
of January 1, 2008.
A.
Plan Description
The City provides benefits for retirees as required by Minnesota Statute §471.61 subdivision 2b. Active
employees, who retire from the City when over age 50 and with 20 years of service, may continue
coverage with respect to both themselves and their eligible dependent(s) under the City's health benefits
program until age 65. Pursuant to the provisions of the plan, retirees are required to pay the total premium
cost. As of December 31, 2010 there were approximately 52 active participants and 5 retired participants
receiving benefits from the City's health plans.
B. Funding Policy
The City funds its OPEB obligation on a pay as you go basis. For fiscal year 2010, the City contributed
$21,851 to the plan.
C. Annual OPEB Cost and Net OPEB Obligation
The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual
required contribution (ARC), an amount actuarially determined in accordance with the parameters of
GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected
to cover normal cost each year and amortize any un- funded actuarial liabilities over a period not to exceed
thirty years. The following table shows the components of the City's annual OPEB cost for the year, the
amount actually paid from the plan, and changes in the City's net OPEB obligation.
Annual Required Contribution
Interest on Net OPEB Obligation
Adjustment to Annual Required Contribution
Annual OPEB Cost (Expense)
Contributions Made
Increase in Net OPEB Obligation
Net OPEB Obligation- Beginning of Year
Net OPEB Obligation- End of Year
$ 41,152
1,789
(2,537)
40,404
(21,851)
18,553
44,734
$ 63,287
The City's annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2010:
Fiscal Annual
Year OPEB
Ended Cost
12/31/2008 $ 41,152
12/31/2009 41,152
12/31/2010 40,404
55
Percentage
of Annual
OPEB Cost
Contributed
45.4%
45.9%
54.1%
Net
OPEB
Obligation
$ 22,481
44,734
63,287
... CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 19 OTHER POST EMPLOYMENT BENEFIT PLAN (CONTINUED)
D. Funded Status and Funding Progress
As of January 1, 2008, the most recent actuarial valuation date, the City's unfunded actuarial accrued
liability (UAAL) was $329,191. The annual payroll for active employees covered by the plan in the
actuarial valuation was $4,859,980 for a ratio of UAAL to covered payroll of 6.8 %.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and healthcare cost trends. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are made about
the future. The schedule of funding progress, presented as required supplementary information following
the notes to the financial statements, presents multiyear trend information about whether the actuarial value
of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
E. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed to
reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
—
consistent with the long -term perspective of the calculations.
In the January 1, 2008 actuarial valuation, the projected unit credit actuarial cost method was used. The
actuarial assumptions included a 4% investment rate of return (net of administrative expenses), which is a
blended rate of the expected long -term investment returns on plan assets and on the employer's own
investments calculated based on the funded level of the plan at the valuation date. The initial healthcare
trend rate was 9 %, reduced by decrements to an ultimate rate of 5% after nine years. The UAAL is being
amortized as a level percentage of projected payrolls on an open basis. The remaining amortization period
at December 31, 2010 was 27 years.
REQUIRED SUPPLEMENTARY INFORMATION
UMW
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2010
Statement 11
Page 1 of 7
Revenue:
General property taxes:
Current and delinquent
Fiscal disparities
Excess tax increments
Total general property taxes
Licenses and permits:
Business
Non - business
Total licenses and permits
Intergovernmental:
Federal:
Other
State:
Market Value Credit
Police state aid
MSA maintenance
Other
County/Regional:
Solid waste
Other
Total intergovernmental
Special Assessments:
Penalties and Interest
Charges for services:
General government
Planning /engineering
Fees retained from collection for
other govemments - SAC /surcharge
Administrative charge - other funds
Aerial map charge - other funds
Public safety
Total charges for services
Fines and forfeits
Investment earnings
Refunds
Miscellaneous:
Gas franchise fees
Cable TV
Donations
Other
Total miscellaneous
Total Revenue
2010
Original
Budget
$ 7,675,232
7,675,232
43,600
354,150
397,750
Final
Budget
$ 6,621,032
965,000
123,000
7,709,032
83,600
242,150
325,750
Variance with
Final Budget
Positive
Actual (Negative)
$ 6,478,929
963,968
123,202
7,566,099
89,523
240,615
330,138
$ (142,103)
(1,032)
202
(142,933)
5,923
(1,535)
4,388
- 3,907 3,907
185,000 185,000 181,398 (3,602)
167,000 167,000 184,652 17,652
183,323 183,323 202,030 18,707
35,000 35,000 33,641 (1,359)
5,000 5,000 4,153 (847)
575,323 575,323 609,781 34,458
5,000 5,000 10,172 5,172
22,450 22,450 18,778 (3,672)
10,000 10,000 14,148 4,148
3,000 3,000 977 (2,023)
50,000 50,000 50,000 -
4,000 4,000 (4,000)
251,000 264,000 280,702 16,702
340,450 353,450 364,605 11,155
130,000 130,000 127,203 (2,797)
93,000 53,000 45,811 (7,189)
15,000 25,000 26,841 1,841
120,000 120,000 93,991 (26,009)
55,000 55,000 56,934 1,934
5,000 5,000 176 (4,824)
- 1,741 1,741
180,000 180,000 152,842 (27,158)
9,411,755 9,356,555 9,233,492 (123,063)
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2010
2010
Statement 11
Page 2 of 7
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Expenditures:
General government:
Mayor and council:
Current:
Personal services $ 40,719 $ 40,719 $ 33,342 $ 7,377
Other services and charges 30,800 43,800 41,340 2,460
Contractual Services 14,792 14,792 14,373 419
Total mayor and council 86,311 99,311 89,055 10,256
Elections:
Current:
Personal services 19,605 19,605 17,192 2,413
Supplies 250 250 625 (375)
Other services and charges 3,250 3,250 1,396 1,854
Contractual Services 500 500 - 500
Total elections 23,605 23,605 19,213 4,392
Administration:
Current:
Personal services 440,638 345,438 337,769 7,669
Supplies - 86 (86)
Other services and charges 22,420 22,420 9,848 12,572
Contractual Services 3,400 3,400 4,698 (1,298)
Total administration 466,458 371,258 352,401 18,857
Finance:
Current:
Personal services 296,907 296,907 275,476 21,431
Supplies 1,500 1,500 1,148 352
Other services and charges 103,325 103,325 94,323 9,002
Contractual Services 85,900 85,900 102,018 (16,118)
Total finance 487,632 487,632 472,965 14,667
Cable TV:
Current:
Personal services 2,530 2,530 1,639 891
Supplies 50 50 - 50
Total cable TV 2,580 2,580 1,639 941
Consultants:
Current:
Legal 160,000 170,000 170,206 (206)
58
s
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2010
2010
Statement 11
Page 3 of 7
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
General government (continued):
Engineering /planning:
Current:
-
Contractual services $ 216,500 $ 166,500 $ 174,470 $ (7,970)
Total engineering/planning 216,500 166,500 174,470 (7,970)
Senior Service:
- Current:
Personal services 33,354 33,354 33,420 (66)
Other services and charges 1,600 1,600 2,107 (507)
Capital outlay: 500 500 - 500
Total senior service 35,454 35,454 35,527 (73)
Charter commission:
Current:
Other services and charges 1,500 1,500 1,475 25
Total charter commission 1,500 1,500 1,475 25
General government buildings:
- Current:
Personal services 90,766 90,766 81,509 9,257
Supplies 42,500 42,500 33,822 8,678
_ Other services and charges 340,880 340,880 273,979 66,901
Contractual services 25,000 25,000 19,610 5,390
Total general government buildings 499,146 499,146 408,920 90,226
Total general government
IMMO
1,979,186 1,856,986 1,725,871 131,115
59
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2010
Public safety:
Police:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total police
Fire protection:
Current:
Contractual services
Building inspection:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Total building inspection
Total public safety
Public works:
Streets:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Total streets
Fleet:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Total fleet
Total public works
Statement 11
Page 4 of 7
2010
Original
Budget
Final
Budget
$ 3,069,357 $ 2,979,357
28,500 32,500
80,000 83,000
37,000 37,000
9,500 9,500
3,224,357 3,141,357
516,045
516,045
191,780 191,780
1,130 1,130
13,500 13,500
1,150 1,150
207,560 207,560
3,947,962 3,864,962
533,349
105,500
87,900
172,500
899,249
100,608
264,000
56,070
2,700
423,378
1,322,627
60
538,349
105,500
97,900
172,500
914,249
Variance with
Final Budget
Positive
Actual (Negative)
$ 2,943,059
31,335
88,441
34,443
7,890
3,105,168
516,044
173,910
324
10,250
300
184,784
3,805,996
553,818
93,406
101,016
177,371
925,611
110,608 115,687
214,000 204,439
56,070 36,893
2,700 1,889
383,378 358,908
$ 36,298
1,165
(5,441)
2,557
1,610
36,189
1
17,870
806
3,250
850
22,776
58,966
(15,469)
12,094
(3,116)
(4,871)
(11,362)
(5,079)
9,561
19,177
811
24,470
1,297,627 1,284,519 13,108
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2010
2010
Statement 11
Page 5 of 7
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Parks and recreation:
Parks:
Current:
- Personal services $ 431,263 $ 441,263 $ 439,193 $ 2,070
Supplies 27,000 27,000 19,601 7,399
Other services and charges 52,700 52,700 45,965 6,735
Contractual services 30,950 30,950 7,070 23,880
Total parks 541,913 551,913 40,084
Recreation:
_ Current:
Personal services 263,421 273,421 256,734 16,687
Supplies 2,500 2,500 2,991 (491)
Other services and charges 16,600 16,600 12,338 4,262
-
Contractual services 800 800 1,570 (770)
Total recreation 283,321 293,321 273,633 19,688
Total parks and recreation
825,234 845,234 785,462 59,772
Conservation of natural resources:
Forestry:
Current:
Personal services 50,515 50,515 49,456 1,059
Supplies 1,250 1,250 906 344
' Other services and charges 800 800 735 65
Contractual services 7,500 7,500 1,078 6,422
Capital outlay 5,000 5,000 2,151 2,849
- Total forestry 65,065 65,065 54,326 10,739
Environmental:
Current:
Personal services 85,105 85,105 81,988 3,117
Supplies 1,500 1,500 623 877
Other services and charges 9,480 9,480 5,681 3,799
Contractual services 1,050 1,050 47 1,003
-
Total environmental 97,135 97,135 88,339 8,796
61
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2010
Statement 11
Page 6 of 7
2010
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Conservation of natural resources (continued):
Solid waste abatement:
Current:
Personal services $ 29,925 $ 29,925 $ 28,638 $ 1,287
Other services and charges 550 550 550
Contractual services 6,000 6,000 5,910 90
Total solid waste abatement 36,475 36,475 34,548 1,927
Total conservation of natural resources
198,675 198,675 177,213 21,462
Community Development:
Community Development:
Current:
Personal services 215,100 215,100 214,284 816
Supplies 100 100 - 100
Other services and charges 9,030 19,030 14,576 4,454
Contractual Services 1,300 1,300 1,399 (99)
Total community development 225,530 235,530 230,259 5,271
Economic Development:
Current:
Personal services 87,651 87,651 86,451 1,200
Supplies 150 150 13 137
Other services and charges 11,200 51,200 45,569 5,631
Contractual services 400 400 535 (135)
Total economic development 99,401 139,401 132,568 6,833
Planning and zoning commission:
Current:
Personal services 166,289 166,289 167,713 (1,424)
Supplies 250 250 250
Other services and charges 18,400 18,400 10,220 8,180
Contractual services 46,350 46,350 62,131 (15,781)
Total planning and zoning commission 231,289 231,289 240,064 (8,775)
Total community development 556,220 606,220 602,891 3,329
Other :
Contingency 74,351 74,351 - 74,351
Total Expenditures 8,904,255 8,744,055 8,381,952 362,103
Revenue over Expenditures 507,500 612,500 851,540 239,040
62
IMMV
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2010
2010
Statement 11
Page 7 of 7
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Other financing sources (uses):
— Transfer out $ (557,500) $ (612,500) $ (612,699) $ (199)
Net increase (decrease) in fund balance $ $ 238,841 $ 238,841
Fund Balance - January 1 5,387,964
Fund balance - December 31 $ 5,626,805
63
CITY OF LINO LAKES, MINNESOTA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2010
Note 1 BUDGETS
The General Fund budget is legally adopted on a basis consistent with U.S. Generally Accepted Accounting Principles.
The legal level of budgetary control is at the department level. The following is a listing of expenditures that exceeded
budget appropriations.
Final
Budget
Actual
Actual in
Excess of
Budget
General Fund:
General government:
Legal $ 170,000 $ 170,206 $ (206)
Engineering /planning 166,500 174,470 (7,970)
Senior service 35,454 35,527 (73)
Public works:
Streets 914,249 925,611 (11,362)
Community development:
Planning and zoning commission 231,289 240,064 (8,775)
64
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFIT PLAN
December 31, 2010
Statement 12
— Actuarial UAAL as a
Actuarial Accrued Percentage
Actuarial Value of Liability Unfunded Funded Covered of Covered
s.. Valuation Assets (AAL) AAL Ratio Payroll Payroll
Date (a) (b) (b -a) (a/b) (c) ((b -a) /c)
1/1/2008 $ $ 329,191 $ 329,191 $ 4,859,980 6.8%
65
Nonmajor Governmental Funds
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 nonmajor Special Revenue Funds
during the year.
Economic Development Authority - established to account for the receipt and uses of funds for
economic purposes.
Program Recreation - established to account for various self - supporting recreational programs.
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.
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 nonmajor Capital Project
Funds during the year:
Capital Improvement Projects - to account for the proceeds from Equipment Certificates.
Capital Equipment Revolving Fund - to account for funds held to purchase capital equipment.
Closed Bond Fund - to account for excess funds from matured bond issues.
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.
Legacy Woods Edge Improvement Fund — the Legacy Woods Edge Improvement fund accounts for
construction costs related to infrastructure improvements in the Legacy Woods Edge development.
Tax Increment Funds - to account for development projects financed with tax increments.
Capital Project Funds (Continued)
OEM
Birch Street Hodgson Road Improvement Fund - to account for costs to improve the intersection at Birch
Street and Hodgson Road.
Dedicated Parks - to account for the receipts and use of monies collected from dedicated parks fees.
Municipal State Aid - to account for the collection of assessments on municipal state aid projects.
Office Equipment Revolving Fund - to account for the receipt and use of funds for office equipment
purchases.
Traffic Signal – to account for costs associated with construction of traffic signals in the City.
Permanent Funds
Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, and not
principal, may be used for purposes that support the City's programs. The City maintained the following
nonmajor Permanent Fund during the year.
Foxborough Environment Fund - established to account for the use of funds received for environmental
— maintenance and improvements in the Foxborough area.
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2010
Special Revenue Debt Service
Lease Public Project
Economic Special Certificates Revenue Refunding
Development Program Revenue of Bonds Bonds
Authority Recreation Subtotal Indebtedness of 1998A of 1999C
Assets
Cash and investments $ $ 124,494 $ 124,494 $ 121,716 $ 486,798 $ 270,684
Accounts receivable 1,147 1,147 - -
Due from other govemmental units -
Interfund receivable
Taxes receivable:
Delinquent 10,126 3,950 2,666
Due from county 3,532 726 488
Special assessments receivable:
Delinquent
Deferred
Due from county -
Long-term notes receivable 225,000 225,000
Prepaid items 2,342 2,342
Total assets $ 225,000 $ 127,983 $ 352,983 $ 135,374 $ 491,474 $ 273,838
Liabilities and Fund Balance
Liabilities:
Interfund payable
Accounts payable
Salaries payable
Contracts and retainage payable
Due to other governments
Advances from other funds
Deferred revenue
Total liabilities
$ $
14,939
231
14,939
231
- $ $
10,126 3,950
15,170 15,170 10,126 3,950
2,666
2,666
Fund balance (deficit):
Reserved for prepaid items 2,342 2,342 - -
Reserved for debt retirement - 125,248 487,524 271,172
Reserved for environmental improvement - - - -
Reserved for long -term notes receivable 225,000 225,000
Unreserved:
Designated:
Recreation programs - 110,471 110,471
Capital improvements -
Undesignated -
Total fund balance (deficit) 225,000 112,813 337,813 125,248 487,524 271,172
Total liabilities and fund balance $ 225,000 $ 127,983 $ 352,983 $ 135,374 $ 491,474 $ 273,838
66
limor
Statement 13
Page 1 of 3
Debt Service (Continued)
Improvement Improvement and Tax
Improvement Improvement Refunding Improvement Utility Revenue Improvement Abatement
Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds
2002A 2002B 2003A 2003B 2004A 2005B 2006C
$ 243,523 $ 647,720 $ 122,469 $ 63,541 $ 215,188 $ 262,158 $ 83,127
1,115
298
6,058 6,138
1,607 1,696
- - 11,737 5,933 2,892
62,986 206,249 139,173 35,041 132,356 215,336
- - 87 - 927
$ 306,509 $ 853,969 $ 261,729 $ 111,732 $ 353,477 $ 488,978 $ 90,961
62,986 206,249 139,173
62,986 206,249 139,173
243,523 647,720
243,523
$ 306,509 $ 853,969 $ 261,729 $ 111,732 $ 353,477 $ 488,978 $ 90,961
$ $
47,893 138,289 224,286 6,138
47,893 138,289 224,286 6,138
122,556 63,839 215,188 264,692 84,823
647,720 122,556 63,839 215,188 264,692 84,823
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2010
Debt Service (continued)
Utility CIP Improvement and
Revenue Refunding TIF Improvement Utility Revenue Debt
Bonds Bonds Bonds Bonds Refunding Bonds Service
2006D 2006E 2007A 2009A 2010 Subtotal
Assets
Cash and investments $ 50,974 $ 244,784 $ 155,088 $ 425 $ 4,945 $ 2,973,140
Accounts receivable - - - -
Due from other governmental units - -
Interfund receivable
Taxes receivable:
Delinquent - 12,632 - 42,685
Due from county 3,601 - - 11,948
Special assessments receivable:
Delinquent 2,694 - 23,256
Deferred 138,103 - 929,244
Due from county - - - 1,014
Long -term notes receivable - - -
Prepaid items - - - -
Total assets
Liabilities and Fund Balance
$ 191,771 $ 261,017 $ 155,088 $ 425 $ 4,945 $ 3,981,287
Liabilities:
Interfund payable $ - $ $ - $ - $ $ -
Accounts payable
Salaries payable
Contracts and retainage payable
Due to other governments
Advances from other funds - - -
Deferred revenue 140,797 12,632 - 995,185
Total liabilities 140,797 12,632 - 995,185
Fund balance (deficit):
Reserved for prepaid items - - - -
Reserved for debt retirement 50,974 248,385 155,088 425 4,945 2,986,102
Reserved for environmental improvement - - - -
Reserved for long -term notes receivable
Unreserved:
Designated:
Recreation programs -
Capital improvements
Undesignated - - -
Total fund balance (deficit) 50,974 248,385 155,088 425 4,945 2,986,102
Total liabilities and fund balance $ 191,771 $ 261,017 $ 155,088 $ 425 $ 4,945 $ 3,981,287
68
Irmo
Statement 13
Page 2 of 3
Capital Projects
Capital Capital Closed Surface Birch Street
Improvement Equipment Bond Street Water Hodgson Road
Projects Revolving Fund Fund Reconstruction Sealcoating Management Improvement
$ 1,416,151 $ 286,637 $ 292,067 $ 538,252 $ 445,003 $ 276,610 $ 15,383
14,647 - -
1,500
534,485 842,196
1,729 26,814
8,037 145,412 248,596
29,221
$ 1,965,283 $ 286,637 $ 1,144,029 $ 683,664 $ 445,003 $ 582,741 $ 15,383
$ $ $ $ $ $ $
11,536 46,182 474 1,002 58
13,293
9,766 145,412 275,410
11,536 46,182 9,766 145,886 14,295 275,468
1,953,747 240,455 537,778 430,708 307,273 15,383
1,134,263 - - - -
1,953,747 240,455 1,134,263 537,778 430,708 307,273 15,383
$ 1,965,283 $ 286,637 $ 1,144,029 $ 683,664 $ 445,003 $ 582,741 $ 15,383
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2010
Assets
Cash and investments
Accounts receivable
Due from other governmental units
Interfund receivable
Taxes receivable:
Delinquent
Due from county
Special assessments receivable:
Delinquent
Deferred
Due from county
Long -term notes receivable
Prepaid items
Total assets
Liabilities and Fund Balance
Capital Projects (continued)
Tax Tax Tax Tax
Increment Increment Increment Increment
Financing Financing Financing Financing Dedicated Municipal
1 -5 1 -9 1 -10 1 -11 Parks State Aid
$ 55,668 $ - $ 135,900 $ $ 66,963 $ 1,251,484
$ 55,668 $
$ 135,900 $ $ 66,963 $ 1,251,484
Liabilities:
Interfund payable $ - $ - $ $ 761,593 $ $
Accounts payable - - 567
Salaries payable -
Contracts and retainage payable
Due to other governments 49,462 2,486
Advances from other funds 658,875
Deferred revenue
Total liabilities 49,462 764,646 658,875
Fund balance (deficit):
Reserved for prepaid items
Reserved for debt retirement
Reserved for environmental improvement - -
Reserved for long -term notes receivable - -
Unreserved:
Designated:
Recreation programs - - -
Capital improvements 55,668 86,438 1,251,484
Undesignated - - (764,646) (591,912)
Total fund balance (deficit) 55,668 86,438 (764,646) (591,912) 1,251,484
Total liabilities and fund balance $ 55,668 $ $ 135,900 $ - $ 66,963 $ 1,251,484
70
Statement 13
Page 3 of 3
Permanent
Capital Projects (Continued) Fund
Office
Equipment Legacy Woods Capital Foxborough
Revolving Edge Traffic Projects Environment
Fund Improvement Signal Subtotal Fund
Total
2010
$ 250,142 $ 522,104 $ $ 5,552,364 $ 112,676 $ 8,762,674
14,647 15,794
1,500 1,500
1,376,681 - 1,376,681
42,685
11,948
- 28,543 51,799
- - 402,045 1,331,289
- - 29,221 - 30,235
- - - 225,000
- - 2,342
$ 250,142 $ 522,104 $ $ 7,405,001 $ 112,676 $ 11,851,947
ORM
$ - $ - $ 4,184 $ 765,777 $ $ 765,777
- - 1,654 61,473 76,412
- - - 231
_ - 13,293 13,293
- - 51,948 51,948
- - 658,875 658,875
- - 430,588 1,425,773
- 5,838 1,981,954 2,992,309
2,342
2,986,102
100,000 100,000
225,000
- - 110,471
250,142 522,104 5,651,180 5,651,180
- - (5,838) (228,133) 12,676 (215,457)
250,142 522,104 (5,838) 5,423,047 112,676 8,859,638
$ 250,142 $ 522,104 $ - $ 7,405,001 $ 112,676 $ 11,851,947
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2010
Special Revenue Debt Service
Lease Public Project
Economic Special Certificates Revenue Refunding
Development Program Revenue of Bonds Bonds
Authority Recreation Subtotal Indebtedness of 1998A of 1999C
Revenue:
General property taxes $ $ - $ - $ 255,805 $ 2,393 $ 1,607
Tax increments - - -
Intergovernmental - - -
Special assessments - - 259 134 88
Charges for services 175,485 175,485 - -
Investment earnings 1,555 1,555 1,948 4,293 3,281
Miscellaneous - - - 120,000 -
Total revenue 177,040 177,040 258,012 126,820 4,976
Expenditures:
Current:
General government 198 - 198 -
Public works - -
Parks, recreation and forestry 160,359 160,359 -
Conservation of natural resources - - -
Community development - - -
Capital outlay:
General government - -
Public safety - -
Public works - - -
Debt service:
Principal - 231,000 115,000 90,000
Interest and fiscal charges - 25,117 4,600 2,733
Total expenditures 198 160,359 160,557 256,117 119,600 92,733
Revenue over (under) expenditures (198) 16,681 16,483 1,895 7,220 (87,757)
Other financing sources (uses):
Transfer in 198 - 198
Transfer out -
Sale of property
Issuance of debt
Premium on bonds issued -
Payment made to refunding
bond escrow agent
Total other financing
sources (uses) 198 - 198
Net increase (decrease) in fund balance 16,681 16,681 1,895
Fund balance (deficit)
Beginning of year 225,000 96,132 321,132 123,353 480,304 358,929
7,220 (87,757)
Fund balance (deficit) - December 31 $ 225,000 $ 112,813 $ 337,813 $ 125,248 $ 487,524 $ 271,172
72
Statement 13
Page 3 of 3
Permanent
Capital Projects (Continued) Fund
Office
Equipment Legacy Woods Capital Foxborough
Revolving Edge Traffic Projects Environment
Fund Improvement Signal Subtotal Fund
Total
2010
$ 250,142 $ 522,104 $ $ 5,552,364 $ 112,676 $ 8,762,674
�- 14,647 15,794
1,500 1,500
1,376,681 1,376,681
42,685
11,948
- - 28,543 51,799
- - - 402,045 1,331,289
- - - 29,221 30,235
- - - 225,000
- - 2,342
$ 250,142 $ 522,104 $ - $ 7,405,001 $ 112,676 $ 11,851,947
$ $ - $ 4,184 $ 765,777 $ $ 765,777
- - 1,654 61,473 76,412
- - - - 231
_ - - - 13,293 13,293
- - 51,948 51,948
- - - 658,875 658,875
- - 430,588 1,425,773
- - 5,838 1,981,954 2,992,309
2,342
2,986,102
100,000 100,000
225,000
- - - 110,471
250,142 522,104 5,651,180 5,651,180
- - (5,838) (228,133) 12,676 (215,457)
250,142 522,104 (5,838) 5,423,047 112,676 8,859,638
$ 250,142 $ 522,104 $ - $ 7,405,001 $ 112,676 $ 11,851,947
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2010
Special Revenue Debt Service
Lease Public Project
Economic Special Certificates Revenue Refunding
Development Program Revenue of Bonds Bonds
Authority Recreation Subtotal Indebtedness of 1998A of 1999C
Revenue:
General property taxes $ $ $ - $ 255,805 $ 2,393 $ 1,607
Tax increments - - - -
Intergovernmental - - -
Special assessments - - 259 134 88
Charges for services 175,485 175,485 - -
Investment earnings 1,555 1,555 1,948 4,293 3,281
Miscellaneous - - - 120,000 -
Total revenue 177,040 177,040 258,012 126,820 4,976
Expenditures:
Current:
General government 198 198
Public works -
Parks, recreation and forestry 160,359 160,359
Conservation of natural resources -
Community development
Capital outlay:
General government
Public safety
Public works
Debt service:
Principal - 231,000 115,000 90,000
Interest and fiscal charges - 25,117 4,600 2,733
Total expenditures 198 160,359 160,557 256,117 119,600 92,733
Revenue over (under) expenditures (198) 16,681 16,483 1,895 7,220 (87,757)
Other financing sources (uses):
Transfer in 198 - 198
Transfer out - - -
Sale of property - - -
Issuance of debt
Premium on bonds issued -
Payment made to refunding
bond escrow agent
Total other financing
sources (uses) 198 - 198 -
Net increase (decrease) in fund balance 16,681 16,681 1,895 7,220 (87,757)
Fund balance (deficit)
Beginning of year 225,000 96,132 321,132 123,353 480,304 358,929
Fund balance (deficit) - December 31 $ 225,000 $ 112,813 $ 337,813 $ 125,248 $ 487,524 $ 271,172
72
Statement 14
Page 1 of 3
Immir
Debt Service (Continued)
Improvement Improvement and Tax
Improvement Improvement Refunding Improvement Utility Revenue Improvement Abatement
_ Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds
2002A 2002B 2003A 2003B 2004A 2005B 2006C
$ - $ - $ $ 22,336 $ $ 118,014 $ 132,713
Ilsow
19,915 114,075 26,645 24 19,454 67,038 120
2,732 7,025 537 610 4,103 2,695 248
22,647 121,100 27,182 22,970 23,557 187,747 133,081
timm
25,000 225,000 55,000 25,000 75,000 420,000 -
�- 4,800 47,258 25,451 7,754 35,555 103,903 104,291
29,800 272,258 80,451 32,754 110,555 523,903 104,291
Mow
IMMO
(7,153) (151,158) (53,269) (9,784) (86,998) (336,156) 28,790
- 79,581
- - 980,307
- (965,000)
79,581 - 15,307 -
(7,153) (151,158) 26,312 (9,784) (71,691) (336,156) 28,790
250,676 798,878 96,244 73,623 286,879 600,848 56,033
$ 243,523 $ 647,720 $ 122,556 $ 63,839 $ 215,188 $ 264,692 $ 84,823
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2010
Debt Service (Continued)
Utility
Revenue
Bonds
2006D
Revenue:
General property taxes $
Tax increments
Intergovernmental - -
Special assessments 17,008 232
Charges for services - -
Investment eamings - 738
Miscellaneous
Total revenue 17,008 305,546
Expenditures:
Current:
General government
Public works
Parks, recreation and forestry
Conservation of natural resources
Community development
Capital outlay:
General government
Public safety
Public works
Debt service:
Principal 50,000 80,000
Interest and fiscal charges 18,992 118,869
Total expenditures 68,992 198,869
CIP
Refunding
Bonds
2006E
TIF
Bonds
2007A
$ 304,576 $
Revenue over (under) expenditures (51,984) 106,677
Other financing sources (uses):
Transfer in 68,122
Transfer out
Sale of property
Issuance of debt
Discount on bonds issued
Premium on bonds issued
Payment made to refunding
bond escrow agent
Total other financing
sources (uses)
Net increase (decrease) in fund balance
Fund balance (deficit)
Beginning of year
Fund balance (deficit) - December 31
175,000
160,296
335,296
Improvement
Bonds
2009A
99,575
99,575
(335,296) (99,575)
335,346 100,000
68,122 335,346
16,138 106,677 50
34,836 141,708 155,038
100,000
425
Improvement and
Utility Revenue
Refunding Bonds
2010
536
536
26,264
26,264
(25,728)
19,693
10,980
30,673
50,974 $ 248,385 $ 155,088 $ 425 $
74
4,945
Debt
Service
Subtotal
$ 837,444
264,992
28,746
120,000
1,251,182
1,566,000
785,458
2,351,458
(1,100,276)
583,049
1,000,000
10,980
(965,000)
629,029
(471,247)
3,457,349
4,945 $ 2,986,102
UMW
Wows
law
Statement 14
Page 2 of 3
Capital Projects
Capital Capital Closed Surface Birch Street
Improvement Equipment Bond Street Water Hodgson Road
Projects Revolving Fund Fund Reconstruction Sealcoating Management Improvement
$ - $ - $ - $ $ $ - $ -
2,892 24,235 231 91,397
20,936 3,833 12,085 7,329 7,000 2,749 176
192,522 2,651 - - - - -
213,458 6,484 14,977 31,564 7,231 94,146 176
2,324 1,997
22,549
94,277
178,405
155,716
386,982
29,695
24,873 272,682 1,997 155,716 386,982 29,695
188,585 (266,198) 12,980 (124,152) (379,751) 64,451 176
110,000 - 422,500
20,600
170,000
300,600 - 422,500
188,585 34,402 12,980 (124,152) 42,749 64,451
176
1,765,162 206,053 1,121,283 661,930 387,959 242,822 15,207
$ 1,953,747 $ 240,455 $ 1,134,263 $ 537,778 $ 430,708 $ 307,273 $ 15,383
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2010
Capital Projects (Continued)
Tax Increment Tax Increment Tax Increment Tax Increment
Financing Financing Financing Financing Dedicated Municipal
1 -5 1 -9 1 -10 1 -11 Parks State Aid
Revenue:
General property taxes $ - $ - $ $ - $ - $ -
Tax increments 40,970 137,975 65,000 -
Intergovernmental - 567,082
Special assessments -
Charges for services - -
Investment earnings 619 1,117 1,243 15,810
Miscellaneous - - 2,436 -
Total revenue 41,589 139,092 65,000 3,679 582,892
Expenditures:
Current:
General govemment:
Public works -
Parks, recreation and forestry
Conservation of natural resources - -
Community development 36,905 351,910 99,143 7,833
Capital outlay:
General government -
Public safety -
Public works -
Debt service:
Principal -
Interest and fiscal charges 22,103
Total expenditures 36,905 351,910 99,143 7,833 22,103
Revenue over (under) expenditures 4,684 (351,910) 39,949 57,167 (18,424) 582,892
Other financing sources (uses):
Transfer in - - 55,000
Transfer out - (38,178) (55,167) (242,000)
Sale of property
Issuance of debt
Premium on bonds issued -
Payment made to refunding
bond escrow agent -
Total other financing
sources (uses) (38,178) (55,167) 55,000 (242,000)
Net increase (decrease) in fund balance 4,684 (351,910) 1,771 2,000 36,576 340,892
Fund balance (deficit)
Beginning of year 50,984 351,910 84,667 (766,646) (628,488) 910,592
Fund balance (deficit) - December 31 $ 55,668 $ $ 86,438 $ (764,646) $ (591,912) $ 1,251,484
76
Statement 14
Page 3 of 3
Capital Projects (Continued)
Permanent
Fund
Office
Equipment Legacy Woods Capital Foxborough
Revolving Edge Traffic Projects Environment Total
Fund Improvement Signal Subtotal Fund 2010
$ - $ - $ - $ $ - $ 837,444
243,945 - 243,945
- 567,082 - 567,082
- 118,755 - 383,747
- - - 175,485
2,807 5,995 - 81,699 1,322 113,322
- - 197,609 5,700 323,309
2,807 5,995 - 1,209,090 7,022 2,644,334
UMW
s
- - 4,321 - 4,519
4,328 5,838 605,108 - 605,108
- - - 160,359
- 10,170 10,170
- 495,791 - 495,791
215 - 215 215
94,277 94,277
178,405 178,405
1,566,000
22,103 807,561
215 4,328 5,838 1,400,220 10,170 3,922,405
2,592 1,667 (5,838) (191,130) (3,148) (1,278,071)
Vamp
25,000 - - 612,500 1,195,747
- (335,345) (335,345)
- - 20,600 - 20,600
- - 170,000 - 1,170,000
am. - 10,980
- (965,000)
25,000 - 467,755 - 1,096,982
27,592 1,667 (5,838) 276,625 (3,148) (181,089)
222,550 520,437 5,146,422 115,824 9,040,727
$ 250,142 $ 522,104 $ (5,838) $ 5,423,047 $ 112,676 $ 8,859,638
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUND - PROGRAM RECREATION
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2010
Statement 15
2010
Original Final
Budget Budget
Actual
Variance with
Final Budget
Positive
(Negative)
Revenue:
Charges for services:
Recreation Fees $ 156,105 $ 156,105 $ 175,485 $ 19,380
Investment earnings - 1,555 1,555
Total revenue 156,105 156,105 177,040 20,935
Expenditures:
Current:
Personal services 90,800 90,800 89,485 1,315
Supplies 44,230 44,230 66,336 (22,106)
Other services and charges 6,000 6,000 831 5,169
Contractual services 12,050 12,050 3,707 8,343
Capital outlay 3,000 3,000 3,000
Total expenditures 156,080 156,080 160,359 (4,279)
Net increase (decrease) in fund balance $ 25 $ 25 16,681 $ 16,656
Fund balance - January 1 96,132
Fund balance - December 31 $ 112,813
78
Fiduciary Funds
Agency Fund
Agency Funds are used to account for assets held by the City as an agent for individuals, private
organizations, or other governments. The City maintained the following Agency fund during the year:
Contractor's Deposits — to account for pass- through costs relating to prospective developers.
CITY OF LINO LAKES, MINNESOTA Statement 16
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - FIDUCIARY FUNDS - AGENCY FUNDS
Year Ended December 31, 2010
Balance Balance
January 1, December 31,
2010 Additions Deductions 2010
Assets
Cash and investments $ 773,845 $ 131,724 $ 152,062 $ 753,507
Deposits receivable 10,520 750 10,520 750
Total assets $ 784,365 $ 132,474 $ 162,582 $ 754,257
Liabilities
Accounts payable $ 3,700 $ 140,314 $ 130,960 $ 13,054
Deposits payable 780,665 94,082 133,544 741,203
Total Liabilities $ 784,365 $ 234,396 $ 264,504 $ 754,257
79
SUPPLEMENTARY FINANCIAL INFORMATION
CITY OF LINO LAKES, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2010
Exhibit 1
General Obligation Bonds:
2007A Equipment Certificates
2008A Equipment Certificates
2009A Equipment Certificates
2010A Equipment Certificates
Civic Complex Lease Revenue Bonds, Series 1998A
Public Project Revenue Refunding Bonds, Series 1999C
G.O. Tax Abatement Bonds, Series 2006C
G.O. Utility Revenue Bonds, Series 2006D
G.O. CIP Refunding Bonds, Series 2006E
G.O. Tax Increment Bonds, Series 2007A
Total General Obligation Bonds
Special Assessment Bonds:
G. O. Improvement Bonds of 2002A
G. O. Improvement Bonds of 2002B
G. O. Improvement Refunding Bonds of 2003A
G. O. Improvement Bonds of 2003B
G. O. Improvement and Utility Bonds of 2004A
G. O. Improvement Bonds of 2005A
G. O. Improvement Refunding Bonds of 2005B
G.O. Improvement & Utility Revenue Refunding Bonds, Series 2010A
Total General Improvement Bonds with special assessments pledged
Interest
Rates
Dated
Final
Maturity
Date
4.00% 2/1/07 12/31/2010
4.00% 2/1/08 12/31/2011
3.00% 4/1/2009 12/31/2012
2.00 % -3.00% 4/1/10 12/31/2013
4.20 % -5.35% 8/1/98 2/1/19
4.75 % -5.10% 9/1/99 2/1/10
4.00 % -4.30% 8/15/06 2/1/23
4.00 % -4.15% 8/15/06 2/1/17
4.00% 11/1/06 2/1/18
4.00 % - 4.125% 7/15/2007 2/1/2024
3.00 % -4.10% 8/1/02 2/1/13
3.20 % -5.55% 8/1/02 2/1/13
2.00 % -4.25% 12/1/03 2/1/19
3.20 % -5.60% 12/1/03 2/1/14
1.90 % -4.45% 11/15/04 2/1/20
4.35 % -5.15% 11/1/05 2/1/21
3.75 % -5.00% 11/1/05 2/1/15
2.00 % -3.00% 7/9/10 2/1/20
Revenue Bonds:
G. O. Water Utility Revenue Refunding Bonds of 2006F 3.55 % - 3.625% 11/1/06 2/1/12
Total Revenue Bonds
Other Long -Term Debt:
Note Payable - Anoka County
Total City indebtedness
80
4.00 % -3.70% 8/01/09 8/1/24
s
MEMO
Exhibit 1
Prior Years Principal Interest
Original Payable 2010 Payable Due Due
Issue Payments 1 /1 /10 Issued Payments 12/31/10 In 2010 In 2010
$ 160,000 $ 105,000 $ 55,000 $
209,000 63,000 146,000
336,000 - 336,000
170,000 -
5,350,000 5,235,000 115,000
980,000 890,000 90,000
2,460,000 2,460,000
570,000 100,000 470,000
2,990,000 2,990,000
4,215,000 165,000 4,050,000
17,440,000 6,558,000 10,712,000
645,000
2,110,000
2,090,000
250,000
1,330,000
5,550,000
3,755,000
1,000,000
16,730,000
1,740,000
1,740,000
4,260,000
535,000
1,135,000
1,430,000
100,000
290,000
755,000
1,220,000
5,465,000
110,000
975,000
660,000
150,000
1,040,000
4,795,000
2,535,000
10,265,000
570,000 1,170,000
570,000 1,170,000
- 4,260,000
170,000
170,000
1,000,000
1,000,000
$ 55,000 $ $ - $ -
72,000 74,000 74,000 2,960
104,000 232,000 114,000 6,960
170,000 52,000 9,775
115,000 -
90,000 - -
2,460,000 30,000 102,820
50,000 420,000 50,000 16,122
80,000 2,910,000 305,000 110,300
175,000 3,875,000 215,000 151,626
741,000 10,141,000 840,000 400,563
25,000 85,000 25,000 2,930
225,000 750,000 235,000 34,310
55,000 605,000 60,000 22,638
25,000 125,000 30,000 5,950
1,040,000 - -
300,000 4,495,000 315,000 219,110
420,000 2,115,000 425,000 87,219
1,000,000 100,000 29,625
2,090,000 9,175,000 1,190,000 401,782
375,000 795,000 390,000 21,701
375,000 795,000 390,000 21,701
4,260,000 153,410
$ 40,170,000 $ 12,593,000 $ 26,407,000 $ 1,170,000 $ 3,206,000 $ 24,371,000 $ 2,420,000 $ 977,456
81
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2010
Exhibit 2
Public
Lease Project G. O. G. O. G. O.
Year of Equipment Equipment Equipment Revenue Refunding Improvement Improvement Improvement
Levy/ Certificates Certificates Certificates Bonds Bonds Bonds Bonds Bonds
Collection of 2008A of 2009A of 2010A of 1998A 1999C of 2002A of 2003B of 2005A
2010/2011 $ 80,808 $ 127,008 $ 64,864 $
2011/2012 - 127,617 64,617
2012/2013 - 64,890
2013/2014 -
2014/2015
2015/2016 -
2016/2017 -
2017/2018 -
2018/2019 -
2019/2020 -
2020/2021 -
2021/2022 -
2022/2023 - -
2023/2024 -
$ 9,645 $ 23,524 $ 568,297
8,385 21,917 566,722
20,248 569,609
23,781 566,197
567,247
572,497
571,184
574,072
574,907
579,639
$ 80,808 $ 254,625 $ 194,371 $ $ - $ 18,030 $ 89,470 $ 5,710,371
82
Exhibit 2
G. O. G. O. G. O. G.O.
Improvement Tax CIP G. 0. Improvement
Refunding Abatement Refunding TIF and Utility Revenue
Bonds Bonds Bonds Bonds Refunding Bonds
of2005B 2006C 2006E 2007A 2010A
Total
$ 524,213 $ 196,581 $ 445,410 $ 389,473 $ 123,375 $ 2,553,198
'- 512,925 235,011 468,720 432,943 114,713 2,553,570
490,613 245,511 459,060 442,813 123,427 2,416,171
463,050 255,381 443,940 493,843 121,433 2,367,625
- 264,458 449,820 495,103 124,688 1,901,316
278,140 460,110 500,983 121,537 1,933,267
285,411 464,100 506,023 118,387 1,945,105
297,263 - 268,723 120,488 1,260,546
- 313,472 271,243 117,180 1,276,802
-- - 323,316 278,593 124,372 1,305,920
337,517 285,313 - 622,830
350,447 291,403 641,850
- 301,855 301,855
306,127 306,127
$ 1,990,801 $ 3,382,508 $ 3,191,160 $ 5,264,438 $ 1,209,600 $ 21,386,182
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS
December 31, 2010
Exhibit 3
G. O.
G.O. G. O. Improvement G. O.
Equipment Equipment Equipment Improvement Improvement Refunding Improvement
Certificates Certificates Certificates Bonds Bonds Bonds Bonds
2008A 2009A 2010A of2002A of2002B 2003A 2003B
Bonds payable $ 74,000 $ 232,000 $ 170,000 $ 85,000 $ 750,000 $ 605,000 $ 125,000
Future interest payable 2,960 10,500 15,115 5,375 63,059 116,659 14,098
Totals $ 76,960 $ 242,500 $ 185,115 $ 90,375 $ 813,059 $ 721,659 $ 139,098
Payments to maturity:
2011 $ 76,960 $ 120,960 $ 61,775 $ 27,930 $ 269,310 $ 82,638 $ 35,950
2012 - 121,540 61,540 31,830 271,395 80,537 34,390
2013 - 61,800 30,615 272,354 78,438 32,778
2014 81,088 35,980
2015 78,488
2016 80,788
2017 77,988
2018 79,994
2019 81,700
2020 -
2021
2022
2023
2024
$ 76,960 $ 242,500 $ 185,115 $ 90,375 $ 813,059 $ 721,659 $ 139,098
84
MINN
Exhibit 3
G. O. G.O. G.O. G.O. G.O.
G. 0. Improvement Tax Utility CIP G.O. Improvement
Improvement Refunding Abatement Revenue Refunding TIF and Utility Revenue
Bonds Bonds Bonds Bonds Bonds Bonds Refunding Bonds
2005A 2005B 2006C 2006D 2006E 2007A 2010A
$ 4,495,000 $ 2,115,000 $ 2,460,000 $ 420,000 $ 2,910,000 $ 3,875,000 $ 1,000,000
1,371,949 253,594 843,152 63,697 492,400 1,060,781 152,000
$ 5,866,949 $ 2,368,594 $ 3,303,152 $ 483,697 $ 3,402,400 $ 4,935,781 $ 1,152,000
$ 534,111 $ 512,219 $ 132,820 $ 66,122 $ 415,300 $ 366,626 $ 129,625
532,986 491,375 185,520 69,022 417,800 407,026 108,400
531,111 477,875 221,320 71,722 439,300 416,026 116,600
- 533,361 456,625 231,020 69,292 430,000 463,426 114,700
529,736 430,500 240,043 66,832 415,600 464,326 117,250
530,236 248,381 69,254 420,800 469,526 114,250
534,611 260,858 71,453 430,100 473,926 111,250
532,861 267,464 433,500 252,126 113,175
534,633 278,327 254,326 110,025
534,784 293,233 261,026 116,725
538,519 302,183 267,126 -
315,103 272,504
326,880 282,016
285,775
$ 5,866,949 $ 2,368,594 $ 3,303,152 $ 483,697 $ 3,402,400 $ 4,935,781 $ 1,152,000
CITY OF LINO LAKES, MINI Exhibit 3
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS (CONTINUED)
December 31, 2010
G.O. Water
Utility
Revenue Note
Refunding Payable -
Bonds Anoka
of 2006F County Totals
Bonds payable $ 795,000 $ 4,260,000 $ 24,371,000
Future interest payable 29,043 1,813,670 6,308,052
Totals $ 824,043 $ 6,073,670 $ 30,679,052
Payments to maturity:
2011 $ 411,702 $ 153,410 $ 3,397,458
2012 412,341 153,410 3,379,112
2013 153,410 2,903,349
2014 153,410 2,568,902
2015 516,410 2,859,185
2016 522,010 2,455,245
2017 527,010 2,487,196
2018 531,410 2,210,530
2019 539,260 1,798,271
2020 541,136 1,746,904
2021 546,946 1,654,774
2022 556,816 1,144,423
2023 575,716 1,184,612
2024 603,316 889,091
$ 824,043 $ 6,073,670 $ 30,679,052
Iamm
MEM
CITY OF LINO LAKES, MINNESOTA
INSURANCE IN FORCE
December 31, 2010
Exhibit 4
Coverage Amount
General Liability:
Bodily Injury/Property Damage $ 1,500,000
Personal Injury/Police Professional Liability 1,500,000
Fire Legal Liability 50,000
Medical Expense Occurrence Limit 1,000
Medical Expense Aggregate 10,000
Property Damage ($500 Deductible)
Property:
Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers) 27,033,146
Faithful Performance Blanket Bond 500,000
Storage Tank Liability 250,000
Rented/Leased Equipment ($500 Deductible) 250,000
Public Official and Employee Liability ($500 Deductible each occurrence) 1,500,000
Automotive:
Bodily injury and property damage 1,500,000
Comprehensive and Collision Actual Cash Value
Uninsured motorists 200,000
Workmen's compensation Statutory
— Umbrella Liability 1,000,000
Crime - Theft Disappearance and Destruction ($500 Deductible) 250,000
NMI
87
CITY OF LINO LAKES, MINNESOTA Exhibit 5
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES
Tax Capacity Tax Capacity
Values Values
2009/2010 2008/2009
Taxable valuations:
Total $ 22,070,825 $ 23,196,932
Fiscal disparities:
Distribution 2,833,602 2,779,103
Contribution (1,697, 800) (1,461,587)
Less: Captured Tax Increment Value (327,659) (664,119)
$ 22,878,968 $ 23,850,329
Tax Tax
Certified Capacity Certified Capacity
Levy Rate Levy Rate
Taxes Levied:
Revenue $ 7,816,232 34.086 $ 8,295,172 34.716
Bond and Interest 879,182 3.819 949,166 4.017
Totals $ 8,695,414 37.905 $ 9,244,338 38.733
The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution
88
III.
STATISTICAL
SECTION
Statistical Section (Unaudited)
This part of the Comprehensive Annual Financial Report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about overall financial health. The following are the
categories of the various schedules that are included in this section.
Financial Trends Tables 1 -4
These schedules contain trend information to help the reader understand how the City's financial
performance and well -being have changed over time.
Revenue Capacity Tables 5 -8
These schedules contain information to help the reader assess the City's most significant revenue
sources.
Debt Capacity Tables 9 -11
These schedules present information to help the reader assess the affordability of the City's
current levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information Tables 12 -13
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City's financial activities take place.
Operating information Tables 14 -16
These schedules contain service and infrastructure data to help the reader understand how the
information the City's financial report relates to the services the City provides and the activities it
performs.
CITY OF LINO LAKES, MINNESOTA
NET ASSETS BY COMPONENT,
LAST EIGHT FISCAL YEARS
(accrual basis of accounting)
Table 1
Fiscal Year
2003 2004 2005 2006 2007 2009 2009 2010
Governmental activities
Invested in capital assets, net of related debt S 25,993,905 5 28,807,262 $ 25,460,528 $ 29,549,174 5 36,789,153 $ 28,472,865 $ 23,400,453 $ 22,562,217
WW1 Restricted 3.568,555 3,045,052 12,050,484 10,704,508 10,324,467 9,870,676 9,414,474 8,428,025
Unrestricted 15,668,226 1649,541 13,577,071 14,516.466 6,339,528 10,790,359 15,926,322 16,738,885
tmws
Total governmental activities net assets
5 45,230,686 $ 48,101,855 S 51,088,083 S 54,770,148 $ 53,453,148 $ 49,133,900 5 48,741,249 $ 47,729,127
Business -type activities
Invested in capital assets, net of related debt $ 25,537,383 S 26,713,498 5 28,342,832 5 29,485,942 $ 29,836,775 5 30,372,670 5 30,071,840 5 29,648,461
Unrntricted 3,778,936 4.744,875 5,572,338 6,880,547 8,063.983 9,028,778 10,112,207 10,728,626
rota) business-
CS MI assets $ 29,316,319 $ 31,458,373 $ 33,915,170 5 36,366,489 S 37,900,758 $ 39,401,448 $ 40,184.047 5 40,377,087
Primary Government
Invested in capital assets, net of related debt $ 51,531,288 5 55,520,760 $ 53,803,360 5 59,035,116 5 66,625,928 $ 58,845,535 5 53,472,293 $ 52,210,678
Restricted 3,568,555 3,045.052 12,050,484 10,704,508 10,324,467 9,870,676 9,414,474 8,428,025
Unrestricted 19,447,162 20,994,416 19,149,409 21,397,013 14,403,511 19,819,137 26,038,529 27,467,511
Total primary government net assets S 74,547,005 S 79,560,228 $ 85,003,253 $ 91,136,637 $ 91,353,906 $ 88,535,348 S 88,925,296 $ 88,106,214
Note: The City began to report accrual information when it implemented GASB 34 in fiscal year 2001
89
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET ASSETS,
LAST EIGHT FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2003 2004 2005 2006 2007 2008 2009
Expenses
Govemmental activities:
General Government $ 6,092,587 S 2,524,387 S 2,941,279 $ 2,886,825 $ 2,197,672 $ 2,323,358 $ 2,201,439
Public Safety 2,648,944 2,799,294 3,091,174 3,516,376 3,730,504 4,051,162 4,299,366
Public Services 1,162,412 7,254,708 9,187,436 3,871,968 10,580,560 7,608,626 4,027,553
Parks, Recreation and Forestry 932,113 1,196,096 799,335 1,162,458 1,357,133 919,948 1,313,560
Conservation of Natural Resources 111,946 116,869 150,092 156,592 183,420 184,624 215,607
Community Development 859,110 420,874 383,211 691,880 1,122,802 1,114,158 1,005,997
Interest on long -term debt 815,681 748,832 797,341 926,021 980,849 1,045,781 928,668
Total governmental activities expenses S 12,622,793 $ 15,061,060 S 17,349,868 $ 13,212,120 $ 20,152,940 $ 17,247,657 $ 13,992,190
Business -type activities:
Water $ 968,458 $ 914,039 $ 876,592 $ 976,575 S 1,170,902 S 1,020,770 S 1,089,569
Sewer 1,046,170 1,130,994 1 ,217,825 1 ,228,123 1,298,963 1 ,287,943 1,432,107
Total business -type activities 2,014,628 2,045,033 2,094,417 2,204,698 2,469,865 2,308,713 2,521,676
Total primary government expenses $ 14,637,421 $ 17,106,093 $ 19,444 ,285 S 15,416,818 S 22,622,805 S 19,556,370 $ 16,513,866
Program Revenues
Governmental activities:
Charges for services:
General Government S 102,520 $ 122,861 S 111,480 $ 88,924 $ 91646 S 79,844 S 101,741
Public Safety 964,034 1,049,858 998 ,210 844,514 1,078,995 1 ,296,418 725,747
Public Works 493,312 454,191 434,087 420,741 389,489 413,040 428,174
Parks, Recreation and Forestry 250,816 242,857 196,951 188,439 185,803 187 ,285 165,994
Conservation of Natural Resources 5,369 11,763 4,873 6,854 4,559 3,660 3,858
Community Development 28,210 28,952 26,985 20,530 15,839 11,623 8,667
Operating grants and contributions 633,691 677,079 761,924 643,749 851,791 693,065 682,797
Capital grants and contributions 4,536,567 7,515 ,238 10,128,024 5,963,204 7,189,346 1,094,789 1,357,015
Total governmental activities program revenues $ 7,014,519 $ 10,102,799 S 12.662,534 $ 8,176,955 $ 9,807,468 $ 3,779,724 $ 3,473,993
Business -type activities:
Charges for services:
Water 8 1,064,326 8 979,075 $ 1,031,175 $ 1,175,172 $ 1,215,763 S 1,058,493 S 1,365,817
Sewer 1,216,589 1 ,280,652 1,361,759 1,391,702 1,446,112 1,472,093 1,502,164
Operating grants and contributions 62,710
Capital grants and contributions 2,719,081 1,589,419 1,733,775 1,535,631 80,750 10,117 8,769
Total business -type activities program revenues 4,999,996 3,849,146 4,126,709 4,102,505 2,742,625 2,540,703 2,939,460
Total primary government program revenues $ 12,014,515 $ 13,951,945 $ 16,789 ,243 S 12,279,460 $ 12,550,093 $ 6,320,427 $ 6,413,453
Net (Expense)/Revenue
Govemmental activities $ (5,608,274) $ (4,958,261) $ (4,687,334) S (5,035,165) $ (10,345,472) $ (13,467,933) $ (10,518,197)
Business -type activities 2,985,368 1,804,113 2,032 ,292 1,897,807 272,760 231,990 417,784
Total primary government net expense $ (2,622,906) $ (3,154,148) S (2,655,042) $ (3,137,358) S (10,072,712) S (13 ,235,943) $ (10,100,413)
General Revenues and Other Changes In Net Assets
Govemmental activities:
Property taxes $ 6,847,470 $ 6,630,279 $ 7,383,415 $ 8 ,269,944 $ 8,785 ,280 $ 9,424,697 $ 9,808,324
Unrestricted grants and contributions - 256,877 129,607 11,321
Unrestricted investment earnings 194,220 221,302 433,387 713,794 864,578 576,071 429,325
Gain on sale of capital assets 1 ,280,957 33,217 17,424 12,512 12,644
Miscellaneous 160,955 -
Transfers (301,355) (303,108) (304,195) (299,725) (895,687) (994,202) (136,068)
Total govemmental activities $ 6,740,335 S 7.829,430 S 7,673,562 $ 8,717 ,230 S 9,028,472 $ 9,148,685 S 10,125,546
Business -type activities:
Unrestricted investment earnings $ 20,866 $ 34,833 $ 120,310 S 253,787 S 365,822 $ 274,498 $ 228,747
Transfers 301,355 303,108 304,195 299,725 895,687 994,202 136,068
Total business -type activities 322,221 337,941 424,505 553,512 1 ,261,509 1,268,700 364,815
Total primary government S 7,062,556 S 8,167,371 S 8,098,067 $ 9,270,742 $ 10,289,981 S 10,417,385 $ 10,490,361
Change in Net Assets
Governmental activities
Business -type activities
Total primary government change in net assets
$ 1,132,061 $ 2,871,169 $ 2,986 ,228 $ 3,682,065 $ (1,317,000) $ (4,319,248) $ (392,651)
3,307,589 2,142,054 2,456,797 2,451,319 1,534,269 1,500,690 782,599
$ 4,439,650 $ 5,013 ,223 $ 5,443,025 $ 6,133,384 $ 217 ,269 $ (2,818.558) $ 389,948
Note: The City began to report accrual information when it implemented GASB 34 in fiscal year 2003.
90
Table 2
2010
1,987,415
3,971,261
3,968,063
1,12_4,907
197,571
1,105,254
1,064,172
13,418,613
1,045,901
1,466,847
2,512,748
15,931,391
98,403
691,005
427,223
177,984
4,153
14,148
617,450
1,388,984
3,41950
1,087,013
1,498 ,218
8,709
2,593,940
$ 6,013 ,290
(9,999.293)
81,192
(9,918,101)
8,761,183
4,389
225,677
(7,078)
8,987,171
104,770
7,078
111,848
9,099,019
(1,012,122)
193,040
(819,082)
91
CITY OF LINO LAKES, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
General Fund
Reserved
Unreserved
Total general fund
All Other Governmental Funds
Reserved reported in:
Special Revenue Funds
Capital Projects Funds
Debt Service Funds
Permanent Funds
Unreserved reported in:
Special Revenue Funds
Capital Projects Funds
Debt Service Funds
Permanent Funds
Total all other governmental funds
Table 3
Fiscal Year
2001
$ 105,969
3,818,700
$ 3,924,669
$ 1,551
1,843,423
1,768,402
41,195
6,242,862
(41,953)
2002
$ 120,727
4,232,291
$ 4,353,018
$ 2,430
1,946,617
1,818,859
25,200
6,317,650
(612,943)
2003
$ 133,921
4,775,969
$ 4,909,890
$ 1,759
1,946,618
2,482,184
32,704
5,406,014
675,409
2004
$ 142,492
5,067,973
$ 5,210,465
$ 1,718
957,112
2,556,300
57,616
6,241,408
452,972
$ 9,855,480 $ 9,497,813 $ 10,544,688 $ 10,267,126
Total all funds $ 13,780,149
92
$ 13,850,831
$ 15,454,578 $ 15,477,591
UMW
Table 3 (Continued)
Fiscal Year
2005
2006
$ 148,652 $ 153,009
5,300,156 5,337,225
$ 5,448,808 $ 5,490,234
$ 1,763
957,112
7,371,359
100,000
74,716
7,348,375
$ 1,813
957,112
3,992,952
100,000
82,385
5,525,508
853 5,378
- $ 15,854,178 $ 10,665,148
2007
$ 181,759
5,356,272
$ 5,538,031
$ 226,921
885,825
3,925,402
100,000
100,955
8,395,827
17,023
$ 13,651,953
$ 21,302,986 $ 16,155,382 $ 19,189,984
2008
$ 190,825
5,393,316
$ 5,584,141
$ 226,973
812,400
3,405,272
106,573
5,927,411
22,224
$ 10,500,853
$ 16,084,994
2009
$ 196,568
5,191,396
$ 5,387,964
$ 227,176
736,772
3,457,349
100,000
93,956
11,611,835
(558,443)
15,824
$ 15,684,469
$ 21,072,433
2010
$ 181,471
5,445,334
$ 5,626,805
$ 227,342
658,875
2,986,102
100,000
110,471
12,537,841
(1,093,765)
12,676
$ 15,539,542
$ 21,166,347
CITY OF LINO LAKES, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Revenues
Property Taxes
Licenses and Permits
Intergovernmental
Special Assessments
Charges for Services
Fines and Forfeits
Investment Eamings
Miscellaneous
Total revenues
Expenditures
Current:
General Government
Public Safety
Public Works
Parks, Recreation and Forestry
Conservation of Natural Resources
Community Development
Capital outlay
Debt Service
Principal
Interest and fiscal charges
Construction/Acquisition
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other Financing Sources (Uses)
Sale of Property
Proceeds from Issuance of Debt
Premium on Bonds Issued
Discount on Bonds Issued
Payment to Refunded Bond Escrow Agent
Transfer In
Transfer Out
Total other financing sources (uses)
Net change in fund balances
Table 4
Fiscal Year
2001
2002
2003
$ 5,856,349 $ 6,243,200 $ 6,687,516
1,016,456 913,498 766,524
2,101,953 858,816 2,011,285
1,783,237 2,050,015 2,812,386
684,264 611,414 658,370
101,559 100,393 97,223
571,248 447,182 194,049
699,020 710,513 677,823
12,814,086 11,935,031 13,905,176
2,652,762 2,893,683 5,808,015
2,212,932 2,463,004 2,609,171
1,134,874 1,245,451 1,770,649
914,432 952,039 969,597
139,599 111,880 114,580
992,339 1,057,099 622,218
2,097,050 2,851,332 1,684,450
960,281 1,030,395 865,638
501,810 1,833,592 229,321
11,606,079 14,438,475 14,673,639
1,208,007 (2,503,444) (768,463)
332,030 2,878,201 2,673,565
(1,680,000)
412,239
(719,889)
(1,655,620)
$ (447,613)
Debt service as a percentage of
noncapital expenditures 30.2%
851,472 1,120,223
(1,155,547) (1,421,578)
2,574,126 2,372,210
94
2004
$ 6,523,938
867,909
2,419,531
1,587,510
639,565
106,053
221,303
782,179
13,147,988
2005
$ 7,230,287
812,172
1,808,111
1,769,821
601,548
100,980
433,385
948,009
13,704,313
2,261,908 2,701,731
2,798,013 3,099,032
5,126,578 7,071,322
954,945 1,111,301
115,631 140,334
515,287 464,553
1,960,000 2,016,000
798,405 838,950
14,530, 767 17,443,223
(1,382,779) (3,738,910)
1,280,957 280,269
1,604,000 9,412,000
176,231
(6,057) -
(1,170,000) -
5,283,306 2,651,469
(5,586,414) (2,955,664)
1,405,792 9,564,305
70,682 $ 1,603,747 $ 23,013 $ 5,825,395
33.6% 18.4% 19.7% 16.8%
MENEM
Table 4 (Continued)
Fiscal Year
2006
2007
$ 8,103,263 $ 8,529,846
581,582 694,435
1,818,519 6,143,689
2,901,100 1,961,253
687,551 753,698
101,518 139,932
713,795 864,578
716,692 889,901
15,624,020 19,977,332
2008
$ 9,095,085
802,135
1,004,476
950,188
872,534
133,531
576,071
516,415
13,950,435
2009
$ 9,561,570
307,714
1,259,016
968,995
778,163
111,807
429,325
513,306
13,929,896
2,614,303 1,953,960 2,058,267 1,918,246
3,314,159 3,513,460 3,806,389 4,122,352
7,755,727 8,446,911 5,542,308 1,965,640
1,076,727 1,103,021 1,033,260 1,106,006
143,653 183,346 183,024 209,466
683,036 1,107,328 1,113,232 1,005,095
835,770 2,008,073 585,875 501,806
2,155,000 1,973,000 1,749,000 1,908,000
1,011,157 937,895 1,074,052 994,809
19,589,532 21,226,994 17,145,407 13,731,420
(3,965,512) (1,249,662) (3,194,972) 198,476
28,818 54,037
6,327,000 4,375,000
450
• • (13,635)
(7,225,000)
5,811,452
(6,111,177)
(1,182,092)
(25,798)
2,900,249
(3,019,224)
4,284,264
2010
$ 8,647,488
330,138
1,176,863
851,270
780,044
127,203
225,677
502,992
12,641,675
1,730,390
3,798,106
1,902,411
945,821
185,232
1,098,682
282,938
1,866,000
1,042,883
12,852,463
(210,788)
13,750 35,700 20,600
209,000 4,596,000 1,170,000
11,141 10,980
4,763,391
(4,796,159)
189,982
1,413,985
(1,367,863)
4,688,963
$ (5,147,604) $ 3,034,602 $ (3,004,990) $
16.9%
203%
17.0%
(965,000)
1,195,747
(1,127,625)
304,702
4,887,439 $ 93,914
22.7% 23.7%
CITY OF LINO LAKES, MINNESOTA
— ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY,
LAST TEN FISCAL YEARS
Payable
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Residential
Property
$ 10,763,728
9,179,811
10,649,345
12,252,347
14,055,076
15,825,619
17,605,080
18,382,645
18,919,087
17,978,917
Commercial/
Industrial
Property
$ 1,872,003
1,202,560
1,487,554
1,982,146
2,290,829
2,740,583
3,047,965
3,431,107
4,002,349
3,800,004
Source: Anoka County, Minnesota Assessors' Office
lama
Personal
Property
$ 393,728
246,594
251,016
259,194
274,956
271,665
288,290
279,102
275,496
291,904
96
Total Taxable
Assessed
Value
$ 13,029,459
10,628,965
12,387,915
14,493,687
16,620,861
18,837,867
20,941,335
22,092,854
23,196,932
22,070,825
Table 5
Total Direct
Tax Rate
$ 35.90
53.08
47.60
42.29
42.22
41.40
38.99
38.97
38.73
37.91
CITY OF LINO LAKES, MINNESOTA
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $100 of Tax Capacity)
City Direct Rate Overlapping Rates
Table 6
General Centennial Total Direct
Obligation School Other and
Debt Redevelopment Total District Anoka Taxing Total Overlapping
Fiscal Year Basic Rate Service Debt Service Direct ISD # 12 County Districts Overlapping Tax Rate
2001 $ 29 $ 7 $ 35.898 $ 69.888 $ 28.859 $ 6.903 $ 105.650 $ 141.548
2002 43.940 9.144 53.084 37.828 37.976 5.913 81.717 134.801
2003 40.268 7.335 47.603 37.467 37.714 7.050 82.231 129.834
2004 36.302 5.985 42.287 36.649 35.221 6.373 78.243 120.530
2005 36.838 5.385 42.223 37.486 33.080 6.696 77.262 119.485
2006 36.044 5.354 41.398 40.253 32.096 6.479 78.828 120.226
2007 34.356 4.638 38.994 38.090 30.696 5.578 74.364 113.358
2008 34.560 4.407 38.967 35.258 31.078 6.956 73.292 112.259
2009 34.716 4.017 38.733 34.593 32.078 5.611 72.282 111.015
2010 34.086 3.819 37.905 37.285 35.189 5.879 78.353 116.258
Source: Anoka County Property Records and Tax Division
Notes:
The majority of Lino Lakes is served by Independent School District No. 12.
Rates for debt service are based on each year's requirements.
97
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS,
CURRENT YEAR AND NINE YEARS AGO
2010 2001
Table 7
Percentage Percentage
of Total of Total
City City
Taxable Taxable Taxable Taxable
Net Tax Net Tax Net Tax Net Tax
Taxpayer Capacity Rank Capacity Capacity Rank Capacity
Target Corporation $ 254,772 1 1.11 % $ %
Lino Lakes Realty LLC 242,114 2 1.06 -
Marshall Investment Corp. 164,371 3 0.72 -
Moline Concrete Products 150,370 4 0.66 85,888 4 0.65
ECC Lino Lakes LLC 147,060 5 0.64 -
Xcel Energy 141,737 6 0.62 129,316 1 0.97
Kohl's Department Store 140,438 7 0.61 -
Taylor Corporation 132,706 8 0.58 96,938 2 0.73
— Royal Oaks Realty Inc. 115,350 9 0.50
F &G Incorporated 108,700 10 0.48 62,078 5 0.47
Gargaro Properties LLC - 72,200 3 0.54
—
Lino Lakes Business Center 93,570 6 0.70
Anoka Electric Cooperative 41,040 7 0.31
Minnegasco, Inc. - 40,446 8 0.30
ft—
Northern Development LLC 39,958 9 0.30
DJT Properties LLC 29,536 10 0.22
Total $ 1,597,618 6.98 % $ 690,970 5.19 %
Source: Anoka County
NIMIPO
98
CITY OF LINO LAKES, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS.
LAST TEN FISCAL YEARS
Taxes Levied for the Fiscal Year
Fiscal Operating
Year Tax Levy
2001 $ 4,105,048
2002 4,885,509
2003 5,180,932
2004 5,623,542
2005 6,342,211
2006 7,042,626
2007 7,558,995
2008 7,973,236
2009 8,295,172
2010 7,816,232
Notes:
Debt
Tax Levy
$ 993,561
1,016,649
943,689
927,078
927,091
934,281
897,333
893,720
949,166
879,182
Total Tax
Levy
$ 5,098,609
5,902,158
6,124,621
6,550,620
7,269,302
7,976,907
8,456,328
8,866,956
9,244,338
8,695,414
Table 8
Collected within the
Fiscal Year of Levy
Amount
$ 5,047,912
5,847,692
6,062,273
6,145,419
6,881,838
7,594,019
8,324,180
8,581,974
8,982,756
8,400,439
Current year levies and collections include State levy related credits (HACA and Market Value Credit).
Does not include tax increment levies and collections.
99
Percentage
of
Levy
99.0%
99.1%
99.0%
93.8%
94.7%
95.2%
98.4%
96.8%
97.2%
96.6%
Collections in
Subsequent
Years
Total Collections to Date
Amount
Table 8 (Continued)
Percentage Outstanding Percentage
of Delinquent of Levy
Levy Taxes Outstanding
$ 50,411 $ 5,098,323 100.0% $ 286 0.0%
56,678 5,904,370 100.0% - 0.0%
87,237 6,149,510 100.0% 0.0%
48,417 6,193,836 100.0% 356,784 5.4%
56,188 6,938,026 95.4% 331,276 4.6%
61,568 7,655,587 96.0% 321,320 4.0%
101,847 8,426,027 99.6% 30,301 0.4%
108,474 8,690,448 98.0% 176,508 2.0%
106,254 9,089,010 98.3% 155,328 1.7%
8,400,439 96.6% 294,975 3.4%
CITY OF LINO LAKES, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Fiscal
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Governmental Activities
General
Obligation
Bonds
$ 6,686,430
6,244,450
6,030,000
5,764,000
5,335,000
7,177,000
11,569,000
11,184,000
10,712,000
10,141,000
Special
Assessments
Payable
$ 10,195,000
11,640,000
12,840,000
11,580,000
19,405,000
13,940,000
12,520,000
11,365,000
10,265,000
9,175,000
Other
Long -Term
Debt
$ 959,352
4,260,000
4,260,000
Notes:
Details regarding the District's outstanding debt can be found in the notes to the financial statements.
See the Demographic and Economic Statistics schedule for personal income and population data.
101
Table 9
Business -Type
Activities
General
Obligation
Revenue
Bonds
$ 3,465,000
3,220,000
2,970,000
2,705,000
2,425,000
4,410,000
1,855,000
1,530,000
1,170,000
795,000
Table 9 (Continued)
Total Percentage Percentage
Primary of Assessed of Personal
Government Market Value Income
$ 21,305,782 0.74 %
21,104,450 0.60
.... 21,840,000 0.48
20,049,000 0.40
27,165,000 0.35
25,527,000 0.41
w
25,944,000 0.60
24,079,000 0.55
26,407,000 0.50
24,371,000 0.48
102
3.94 %
3.69
3.64
3.13
3.95
3.63
3.48
3.11
N/A
N/A
w
NNW
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
As of December 31, 2010
Overlapping:
Anoka County
ISD12
ISD 624
ISD 831
Metropolitan Council
Anoka County Railroad Authority
Total Overlapping
City of Lino Lakes Direct Debt
Table 10
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable Debt
$ 165,392,433 6.5% $ 10,765,308
95,445,000 47.2% 45,049,239
105,365,000 3.3% 3,499,700
35,735,000 7.6% 2,716,401
255,290,000 0.6% 1,609,700
30,155,000 6.5% 1,962,773
65,603,121
$ 3,386,000 100% 3,386,000
Total Direct and Overlapping Debt: $ 68,989,121
Sources: Taxable value data used to estimate applicable percentages provided by the County Property Appraiser. Debt
outstanding data provided by each governmental unit.
Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and
businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long -term debt,
the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply
that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Does not include general obligation debt supported by special assessments, utility revenues,
tax or aid anticipation certificates, State -aid road or revenue debt.
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.
103
CITY OF LINO LAKES, MINNESOTA
Legal Debt Margin Information
Last Ten Fiscal Years
Debt limit
Total net debt applicable to limit
Legal debt margin
Table 11
Fiscal Year
2001 2002 2003 2004
$ 18,073,714 $ 20,688,642 $ 25,024,436 $ 28,616,070
5,836,430 5,479,450
5,350,000 5,169,000
$ 12,237,284 $ 15,209,192 $ 19,674,436 $ 23,447,070
Total net debt applicable to the limit
as a percentage of debt limit 32.29% 26.49% 21.38% 18.06%
104
IMO
Table 11
Legal Debt Margin Calculation for Fiscal Year 2010
Market value $ 2,001,889,600
Debt limit (3% of market value) 60,056,688
Debt applicable to limit 3,386,000
Legal debt margin $ 56,670,688
Fiscal Year
2005 2006 2007 2008 2009 2010
-- $ 30,698,674 $ 34,686,356 $ 38,556,150 $ 60,658,830 $ 64,036,746 $ 60,056,688
4,845,000 4,332,000 4,039,000 3,804,000 3,642,000 3,386,000
$ 25,853,674 $ 30,354,356 $ 34,517,150 $ 56,854,830 $ 60,394,746 $ 56,670,688
Mow
Wawa
15.78% 12.49% 10.48% 6.27% 5.69% 5.64%
105
CITY OF LINO LAKES, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Table 12
(2)
Personal Per
Income Capita (3) (4)
Fiscal (1) (thousands Personal School Unemployment
Year Population of dollars) Income Enrollment Rate
2001 17,386 $ 540,531 $ 31,090 6,911 4.1
2002 17,942 572,099 31,886 6,985 4.3
2003 18,368 600,266 32,680 6,992 5.0
2004 18,725 640,170 34,188 6,956 4.6
2005 19,698 686,968 34,875 6,934 3.8
2006 19,736 703,983 35,670 6,986 4.1
2007 19,851 745,901 37,575 6,874 4.8
2008 19,987 774,376 38,744 6,754 6.9
2009 20,305 N/A N/A 6,722 7.8
2010 20,400 N/A N/A 6,621 7.1
Source:
(1) = Estimates from Metropolitan Council, except for 2000 which is per the U.S. Census.
(2) = Information from State Demographers Office (Bureau of Economic Analysis Report).
(3) = Information from Independent School District No. 12.
(4) = Information from the State of Minnesota Jobs Training Research Statistics Department.
Note: Information not available is marked N/A
106
'MN Imo
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL EMPLOYERS,
CURRENT YEAR AND NINE YEARS AGO
Employer
(2)
2010 2001
Table 13
(1) (1)
Percentage Percentage
of Total of Total
Employees Rank Employment Employees Rank Employment
State of Minnesota Corrections 500 1 N/A % 600 1 N/A %
Target Corporation 271 2 N/A N/A
— AdGraphics 190 3 N/A 300 2 N/A
Molin Concrete Products 179 4 N/A 135 5 N/A
Synovis Interventional Systems 160 5 N/A 160 3 N/A
— Anoka County Juvenile Center 149 6 N/A 160 3 N/A
Rehbein Transit, Inc. 120 7 N/A 130 6 N/A
City of Lino Lakes 74 8 N/A 75 8 N/A
Custom Manufacturing 60 9 N/A 60 9 N/A
Nol -Tech Systems, Inc. 56 10 N/A 57 10 N/A
Summit Fire Protection - 120 7 N/A
Total 1,759 % 1,797 - %
alu
Source: City of Lino Lakes Official Statements
Notes:
(1) = While information was obtainable for the largest employers within the City of Lino Lakes, information on the total employment
within the City was not available.
107
CITY OF LINO LAKES, MINNESOTA
Full- time - Equivalent Employees by Type
Last Ten Fiscal Years
Table 14
2001 2002 2003 2004 2005
General Government
Administration 5.00 5.00 5.00 5.00 5.00
Seniors 0.63 0.63 0.63 0.63 0.63
Finance 3.50 3.50 3.50 3.50 3.50
Economic Development 1.75 1.75 1.00 1.00 1.00
Planning 2.00 2.00 2.00 2.00 2.00
Community Development 2.00 2.00 2.00 2.00 2.75
Engineering -
Building 1.00 1.00 1.00 1.00 1.00
Other 0.55 0.55 0.55 0.55 1.15
Total General Government 16.43 16.43 15.68 15.68 17.03
Public Safety
Officers 21.00 22.00 22.00 22.00 25.00
Civilians 4.00 4.00 4.00 4.00 4.75
Building Inspection 3.00 4.00 4.00 4.00 4.25
Total Public Safety 28.00 30.00 30.00 30.00 34.00
Public Works
Streets 5.85 5.85 5.85 5.85 6.35
Other 1.15 1.15 1.15 1.15 1.15
Total Public Works 7.00 7.00 7.00 7.00 7.50
Parks, Recreation and Forestry 9.15 9.15 9.15 9.15 9.05
Water 2.15 2.15 2.15 2.15 2.15
Sewer 2.15 2.15 2.15 2.15 2.15
Total 64.88 66.88 66.13 66.13 71.88
Source: City Finance Office
108
WNW
Immo
ammo
1M NV
Table 14 (Continued)
2006 2007 2008 2009 2010
5.00 5.00 5.00 5.00 4.00
0.63 0.63 0.63 0.63 0.63
3.50 3.50 3.50 3.50 3.00
1.00 1.00 1.00 1.00 1.00
2.00 2.00 2.00 2.00 2.00
2.75 2.75 2.75 2.75 2.25
1.00 1.00 1.00 1.00 1.00
1.15 1.40 1.40 1.40 1.40
17.03 17.28 17.28 17.28 15.28
26.00 26.00 27.00 27.00 27.00
4.75 4.75 4.75 4.75 4.25
4.25 4.25 4.25 4.25 2.75
35.00 35.00 36.00 36.00 34.00
6.85 7.35 7.35 7.35 6.85
1.15 1.15 1.15 1.15 1.15
8.00 8.50 8.50 8.50 8.00
9.55 9.80 9.80 9.80 9.30
2.15 2.15 2.15 2.15 2.15
2.15 2.15 2.15 2.15 2.15
73.88 74.88 75.88 75.88 70.88
109
CITY OF LINO LAKES, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Years
Function/Program
Table 15
Fiscal Year
2001 2002 2003 2004
General Government
Elections 1 2 1 2
Registered voters 9,349 9,423 9,911 11,718
Number of votes cast 3,089 8,291 4,650 10,147
Voter participation (registered) 33.0% 88.0% 46.9% 86.6%
Public Safety
Police
Calls for Service 6,569 7,318 7,668 7,538
Traffic Citations & Warnings 2,333 2,611 2,564 3,258
Part I Crimes 343 404 370 316
Part II Crimes 1,120 1,259 1,004 644
Inspections
Building Permits (1) 1,042 860 826 835
Inspections N/A N/A N/A N/A
Value of Building Permits $74,974,042 $53,977,610 $55,864,076 $61,579,910
Public Works
General Maintenance (hours) N/A N/A 2,656 3,263
Street Maintenance (hours) N/A N/A 4,082 3,533
Fleet Maintenance (hours) N/A N/A 3,780 3,804
Snow Plowing/Sanding (hours) N/A N/A 1,020 855
Culture and Recreation
Parks
Park Maintenance (hours) N/A N/A N/A 10,210
Utilities
Water Maintenance (hours) N/A N/A N/A 4,349
Sanitary Sewer Maintenance (hours) N/A N/A N/A 3,347
Source: Various City Departments
Notes:
Information not available is labeled N /A.
(1) 1,565 and 4,337 repair permits issued in 2007 and 2008, respectively, due to storm damage.
110
Table 15 (Continued)
Fiscal Year
2005 2006
2007 2008
2009 2010
1 2 1 2 1 2
11,035 11,618 10,908 12,723 11,805 12,284
5,288 8,284 2,337 11,051 4,354 8,545
47.9% 71.3% 21.4% 86.9% 36.9% 69.6%
7,766 7,418 7,208 7,318 6644 6575
.- 3,631 5,958 3,796 3,304 3180 2744
257 292 250 305 215 225
591 649 671 1,191 630 667
- 837 686 2,297 5,041 1,535 509
N/A N/A N/A N/A N/A N/A
$53,686,592 $42,078,007 $30,539,559 $15,852,780 $ 9,586,160 $ 11,295,493
6,014 5,692 6,758 6,129 5,870 4,945
3,106 3,631 2,916 3,851 3,267 3,099
4,440 4,460 4,144 5,043 4,782 4,850
1,003 867 1,425 1,353 950 1,638
10,577 10,368
10,939 11,136
12,406 9,257
3,904 4,387 4,256 5,716 5,041 3,560
4,092 3,347 4,148 3,760 3,486 3,531
111
CITY OF LINO LAKES, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION /PROGRAM
Last Ten Years
Function/Program
Table 16
Fiscal Year
2001 2002 2003 2004 2005
Public Safety
Police
Stations 1 1 1 1
Patrol Units 9 9 9 10
Fire (Joint Powers)
Stations in City 1 1 1 1
Fire Trucks 4 4 4 4
1
11
1
4
Public Works
Lights 405 486 489 489 559
Vehicles 27 28 28 29 29
City Streets (miles) 91.9 93.2 93.8 94.3 95.5
Culture and Recreation
Parks
Parks 17 18 19 19 18
Park Acres 133 138 142 142 141
Trails (miles) 14 14 18 18 19
Park Shelters 3 4 4 5 5
Basketball Courts 4 5 6 6 6
Fishing Pier 1 1 1 1 1
Skating Rinks 4 4 4 4 4
Soccer Fields 8 8 8 8 8
Baseball/Softball Fields 18 18 18 18 18
Tennis Courts 2 2 2 2 2
Playgrounds 15 16 17 17 17
Water
Distribution System (miles) 42.5 42.5 46.2 48.2 50.8
Water Connections 3,263 3,433 3,548 3,738 3,957
Gallons Pumped (millions) 407 358 518 474 475
Number of Fire Hydrants 398 409 452 490 523
Water Tower Capacity (millions gallons) 2 2 2 2 2
Sanitary Sewer
Collection System (miles) 51.3 51.3 59.2 61.4 63.5
Sewer Connections 3,343 3,636 3,763 3,960 4,142
Storm Sewer
Pipe (miles)
Source: Various City Departments
28.1
112
29.8 31.3
31.9 33.1
imm
IMMO
Table 16 (Continued)
Fiscal Year
2006 2007 2008 2009 2010
1 1 1 1 1
12 12 12 12 12
1 1 1 1
5 5 5 5
1
5
673 673 673 673 673
29 29 29 29 29
96.0 96.1 96.1 96.1 96.1
18 18 18 18 18
141 141 141 141 141
20 29 29 29 29
7 7 7 7 7
6 6 6 6 6
1 1 1 1 1
4 4 4 4 4
8 8 8 8 8
20 20 20 20 20
2 2 2 2 2
16 16 16 16 16
51.1 51.5 51.5 51.5 51.5
4,090 4,112 4,247 4,340 4,382
565 595 590 589 498
-- 558 558 558 558 558
2 2 2 2 2
fmlor
63.3 64.5 64.5
64.5 64.5
4,282 4,428 4,447 4,486 4,530
34.1 34.3 34.3 34.3 34.3