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Home My WebLink AboutComprehensive Annual Financial Report 12/31/2009COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF LINO LAKES, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2009 Prepared By: Finance Department Alan Rolek, Director of Finance Paula Schloer, Accountant two 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 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 Revenue, 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 Omm CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference Number Required Supplementary Information General Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Statement 11 58 Notes to Required Supplementary Information 65 Schedule of Funding Progress for Postemployment Benefit Plan Statement 12 66 Combining Fund Financial Statements Combining Balance Sheet — Nonmajor Governmental Funds Statement 13 67 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance — Nonmajor Governmental Funds Statement 14 73 Special Revenue Fund — Program Recreation: Schedule of Revenue, Expenditures and Changes in Fund Balance Budget and Actual Statement 15 79 Statement of Changes in Assets and Liabilities Fiduciary Funds — Agency Funds Statement 16 80 Supplementary Financial Information Combined Schedule of Indebtedness Exhibit 1 81 Schedule of Deferred Tax Levies Exhibit 2 83 Debt Service Payments to Maturity - All Bonds Exhibit 3 85 Insurance in Force Exhibit 4 88 Taxable Valuations, Tax Levies and Tax Rates Exhibit 5 89 III. STATISTICAL SECTION Net Assets by Component — Last Seven Fiscal Years Table 1 90 Changes in Net Assets - Last Seven Fiscal Years Table 2 91 Fund Balances, Governmental Funds - Last Ten Fiscal Years Table 3 93 Changes in Fund Balances, Governmental Funds — Last Ten Fiscal Years Table 4 95 Assessed and Actual Value of Taxable Property - Last Ten Fiscal Years Table 5 97 CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference Number Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years Table 6 98 Principal Property Taxpayers Table 7 99 Property Tax Levies and Collections — Last Ten Fiscal Years Table 8 100 Ratios of Outstanding Debt by Type Table 9 102 Direct and Overlapping Governmental Activities Debt Table 10 104 Legal Debt Margin Information Table 11 105 Demographic and Economic Statistics Table 12 107 Principal Employers, Current Year and Nine Years Ago Table 13 108 Full -Time Equivalent Employees by Type Table 14 109 Operating Indicators by Function/Program Table 15 111 Capital Asset Statistics by Function/Program Table 16 113 I. INTRODUCTORY SECTION CITY OF LINO LAKES, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 2009 Elected Officials Term Expires Mayor: John Bergeson December 31, 2009 Council Members: Kathi Gallup December 31, 2011 Daniel Stoltz (Resigned October, 2009) December 31, 2011 Jeff O'Donnell December 31, 2009 Jeff Reinert December 31, 2009 Dave Roeser December 31, 2011 Appointed Personnel - City Administrator Open Director of Administration Daniel Tesch Director of Finance Alan Rolek Director of Public Safety David Pecchia Director of Community Development Michael Grochala Director of Public Service Rick DeGardner City of Lino Lakes Organizational Chart Honorable Mayor and City Council Commissions Cable Economic Development Planning. and Zoning Environmental Cite Administrator City Clerk Professional Consultants Engineering Attorney Fiscal Public Services t Public Safety Administration Community Development Finance Police Emergency Management Hunan Resources Administrative Services 2 Planning Economic Development Engineering Environmental Services Inspections Accounting Management Information Systems I Utility Billing Vow June 21, 2010 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 IMIMP December 31, 2009. 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 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, 2009, 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, 2009, 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 • F1t: 651- 982 -2499 Profile of the Government The City of Lino Lakes, incorporated in 1955, is a growing community in the southeast corner of the County of Anoka. It covers an area of 33 square miles and has a population of approximately 20,000. The population has more than doubled from the 1990 census figure of 8,807 and has grown by 19% 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 58 and 79, 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 in 1993 by the city council has made an impact in the diversity of the City's tax base. Since 1993, the city has added more than $108 million in additional commercial /industrial market value. Development of the Apollo Business Park on I -35W is nearly completed, with a Pomp's Tire building completed in 2006 and a Hampton Inn hotel completed during 2007. The Clearwater Creek Development Center on I -35E continues to attract industrial development. The commercial retail center on Lake Drive and Apollo Drive in the Town Center area, known as the Lino Lakes Marketplace, has continued to develop. The two anchor tenants, Target and Kohl's, were completed and opened in 2002. A Dairy Queen Grill `n Chill restaurant was completed and opened in 2003, and a Discount Tire store opened in mid -2004. Two retail buildings of approximately 6,000 square feet each were added to the area during 2005. A Wells Fargo branch bank was also constructed in this area and opened in early 2006. Another 6,000 square foot building was added in 2008 to house a Sears Appliance Outlet center. 4 Factors Affecting Financial Condition (Continued) A 12,582 square foot building was built by Schwan's in the Marshan Industrial Park on the southwest quadrant of I -35W and Lake Drive was completed in 2005, further contributing jobs and adding value to the city's growing commercial /industrial tax base. Construction of a two -story office building at the intersection of Lake Drive and Hodgson Road was completed in 2006 and will house E.G. Rud Surveyors and several other tenants. The City initiated an Alternative Urban Areawide Review (AUAR) in 2005 of more than 4,000 acres in the northeast quadrant of the city, which includes property in the I -35E corridor, to assess the impact of future development scenarios in this area. The AUAR provides clear direction for future development regarding environmental and transportation improvements that will be needed, relieving development interests of project - by- project environmental assessments. The City and Anoka County, with financial assistance from the American Recovery and Reinvestment Act, began reconstruction of the I -35E /County Road 14 interchange in late 2009. The City's portion of the cost for this project is being financed through Anoka County, with the City issuing a $4.26 million General Obligation Note to the County. The project is expected to be completed in 2011. Building activity and development continued to soften during 2009 reflecting the broader market trends nation- wide and the onset of an economic recession in December, 2007. Building permits for new homes in 2009 numbered 28, compared to 29 in 2008. This represents about 1/3 of new home permits issued in 2007 and is down • by over 85% from 2005. Long -term financial planning. 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 2011. However, the deep economic recession has stalled housing and commercial plans in the development and has forced the remaining 26 acres into foreclosure and potential tax forfeiture. The City is working with investors to be prepared to market the property when the economy turns. ▪ 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. 5 Factors Affecting Financial Condition (Continued) 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 low interest rate environment has persisted over the last few years and has had a significant impact on the city's investment earnings. The average yield on investments for 2009 was 3.19 %. 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. Pension benefits. The City of Lino Lakes participates in a statewide defined benefit pension plan administered by the Public Employees Retirement Association of Minnesota (PERA). All full -time and part-time employees are covered by PERA. PERA administers the Public Employees Retirement Fund (PERF) which is a cost - sharing, multiple - employer retirement plan. A plan description and funding policy are included in the Notes to the Financial Statements beginning on page 50. Other Post Employment Benefits (OPEB). The City of Lino Lakes has adopted and initiated GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. The City engaged and actuary to determine the City's liability for postemployment healthcare benefits as of January 1, 2008. A plan description and funding policy are included in the Notes to the Financial Statements beginning on page 56. 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, 2008. 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. 6 Awards and Acknowledgements (Continued) A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2009 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 Vow 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, 2008 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. ssoktE °Foe,. c,'F OF TM! elf. MO STATES y• g CANAM Jo MORON 2 SEAT 4, 07;0 4 President 8 efe.0404-0 Executive Director 11. FINANCIAL SECTION law Vamp Honorable Mayor and Members of the City Council City of Lino Lakes, Minnesota Lars•nAllen CPAs, Consultants & Advisors www.larsonallen.coni 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, 2009, 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, 2009, 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 June 21, 2010 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. Umwr 1NTt'. Vr I0N.AL 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 June 21, 2010 10 t_P LarsonAllen LLP Wow OMNI City of Lino Lakes, Minnesota Management's Discussion and Analysis December 31, 2009 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, 2009. 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 $88,925,296 (net assets). Of this amount $26,038,529 (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 increased by $389,948, reflecting the construction financing for the -' I35E /County Road 14 interchange project netted against depreciation of existing infrastructure assets. • As of the close of the current fiscal year, the City of Lino Lakes' governmental funds reported combined ending fund balance of $21,072,433, an increase of $4,887,439 in comparison with the prior year primarily due to the construction financing for the I35E /County Road 14 interchange. Approximately 78% of this total amount, or $16,354,568, 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 $5,191,396, or 57% of total general fund expenditures. • The City's total bonded debt decreased by $1,932,000 (8.0 %) during the current fiscal period. In addition, the City issued a note to Anoka County for $4,260,000 during the year for the the City's portion I35E /County Road 14 interchange project cost. Principal in the amount of $2,268,000 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, 2009 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 two categories: governmental funds and proprietary 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 City of Lino Lakes, Minnesota Management's Discussion and Analysis December 31, 2009 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) 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 -57 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 $88,925,296 at the close of the most recent fiscal year, an increase of $389,948 from the previous year. This increase is due to $782,599 increase in business type activities. By far the largest portion of the City of Lino Lakes' net assets (60 %) 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, 2009 and 2008 are as follows: Current and Other Assets Capital Assets Total Assets Noncurrent Liabilities Outstanding Other Liabilities Total Liabilities Governmental Activities Business -Type A ctivities Total 2009 2008 2009 2008 2009 2008 $ 31,111,757 $ 26,752,468 $ 10,258,440 $ 9,139,304 $ 41,370,197 $ 35,891,772 44,441,064 46,886,728 31,240,252 31,900,320 75,681,316 78,787,048 75,552,821 73,639,196 41,498,692 41,039,624 117,051,513 114,678,820 25,984,244 23,306,988 1,204,232 1,564,874 27,188,476 24,871,862 827,328 1,198,308 110,413 73,302 937,741 1,271,610 26,811,572 24,505,296 1,314,645 1,638,176 28,126,217 26,143,472 Net Assets: Invested in Capital Assets, Net of Related Debt 23,400,453 28,472,865 30,071,840 30,372,670 53,472,293 58,845,535 _ Restricted 9,414,474 9,870,676 - 9,414,474 9,870,676 Unrestricted 15,926,322 10,790,359 10,112,207 9,028,778 26,038,529 19,819,137 Total Net Assets $ 48,741,249 $ 49,133,900 $ 40,184,047 $ 39,401,448 $ 88,925,296 $ 88,535,348 Of the remaining balance of the City of Lino Lakes' net assets, restricted net assets (11 %) are to be used for debt service requirements and a nonexpendable environmental fund. Unrestricted net assets (29 %) 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, 2009 GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUEDZ 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 govemmental and business -type activities. Governmental activities Governmental activities decreased the City of Lino Lakes' net assets by $392,651. 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 $782,599. 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, 2009 and 2008: Govemmental Activities Business -Type Activities Total 2009 2008 2009 2008 2009 2008 REVENUES Program Revenues: Charges for Services $ 1,434,181 $ 1,991,870 $ 2,867,981 $ 2,530,586 $ 4,302,162 $ 4,522,456 Operating Grants and Contributions 682,797 693,065 62,710 745,507 693,065 Capital Grants and Contributions 1,357,015 1,094,789 8,769 10,117 1,365,784 1,104,906 General Revenues: Property Taxes 9,673,693 9,256,407 9,673,693 9,256,407 Franchise Taxes 133,892 167,389 133,892 167,389 Other Taxes 739 901 739 901 Contributions Not Restricted to Specific Programs 11,321 129,607 11,321 129,607 Unrestricted Investment Earnings 429,325 576,071 228,747 274,498 658,072 850,569 Gain on Disposal of Capital Assets 12,644 12,512 - - 12,644 12,512 Total Revenues 13,735,607 13,922,611 3,168,207 2,815,201 16,903,814 16,737,812 EXPENSES General Govemment 2,201,439 2,323,358 2,201,439 2,323,358 Public Safety 4,299,366 4,051,162 4,299,366 4,051,162 Public Service 4,027,553 7,608,626 4,027,553 7,608,626 Parks, Recreation and Forestry 1,313,560 919,948 1,313,560 919,948 Conservation of Natural Resources 215,607 184,624 - 215,607 184,624 Community Development 1,005,997 1,114,158 1,005,997 1,114,158 Interest on Long -Term Debt 928,668 1,045,781 928,668 1,045,781 Water - 1 ,089,569 1,020,770 1,089,569 1,020,770 Sewer 1,432,107 1,287,943 1,432,107 1,287,943 Total Expenses 13,992,190 17,247,657 2,521,676 2,308,713 16,513,866 19,556,370 CHANGE IN NET ASSETS BEFORE TRANSFERS (256,583) (3,325,046) 646,531 506,488 389,948 (2,818,558) Transfers (136,068) (994,202) 136,068 994,202 - - CHANGE IN NET ASSETS (392,651) (4,319,248) 782,599 1,500,690 389,948 (2,818,558) Net Assets - Beginning of Year 49,133,900 53,453,148 39,401,448 37,900,758 88,535,348 91,353,906 NET ASSETS- END OF YEAR $ 48,741,249 $ 49,133,900 $ 40,184,047 $ 39,401,448 $ 88,925,296 $ 88,535,348 14 City of Lino Lakes, Minnesota Management's Discussion and Analysis December 31, 2009 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 r 5,000,000 ,500,000 ,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1 000,000 $500,000 $- P era\ J Gec` Sa \eta 5ec•I\Ges \o`esk6 e40* ** P�.° \\G te�o�a‘a o �akcN e. �� ∎i� G Pa��s ce sek \o�\ Go d\ Gon Revenues by Source — Governmental Activities Unrestricted grants and contributions 0% Franchise taxes 1% Property taxes 70% Unrestricted investment eamings 3% Other 1% �eC\ eb\ deJe \op \oo\e`v \�` \eces\o� Charges for services 10% Operating grants and contributions 5% ■ Expenses • Revenues Capital grants and contributions 10% City of Lino Lakes, Minnesota Management's Discussion and Analysis December 31, 2009 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 Capital grants and contributions 6% Operating grants and contributions 2% Other 6% Sewer 16 ❑ Expenses 1 • Revenues Charges for services 86% Umwr Immo City of Lino Lakes, Minnesota Management's Discussion and Analysis December 31, 2009 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 $21,072,433, an increase of $4,887,439, or 30 %, over the previous year, primarily due to the construction financing for the 135E /County Road 14 interchange. Approximately 78% of this total amount, or $16,354,568, 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 ($198,744), 2) to pay debt service ($3,457,349), 3) to fund interfund advances ($736,772), 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 $5,191,396, while the total fund balance was $5,387,964. 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 57% of total general fund expenditures, while total fund balance represents 60% of that same amount. The fund balance of the City of Lino Lakes' general fund decreased by $196,177 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. The recession also had an impact on property tax delinquencies, interest rates, which made a significant impact on budgeted investment earnings, and intergovernmental revenues expected from the state. Reduced expenditures, primarily for personal services and contractual services, offset some of the reduced revenues. However, an early retirement incentive program to encourage personnel reductions, a personnel litigation settlement, and a transfer to another governmental fund toward the annual installment of an interfund loan for property acquisition, all of which were approved by City Council actions, were the primary causes of the year -end deficit. Overall, the general fund's revenues were within 4% of the amended budget, while expenditures and transfers were 2% below budgeted levels. The G.O. improvement bonds 2005A fund has a total fund deficit of ($558,443). 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 in 2009. 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 $4,304,023, primarily due to the issuance of debt for construction financing. This balance will be reduced throughout 2010 and 2011 as the interchange project progresses. The area and unit charge fund has a total fund balance of $2,898,162, of which $736,772 is reserved for advances to other funds, and $2,161,390 is unreserved and available for financing capital improvements. The fund balance during the current year increased by $249,199, due in large part to the reduction in the advances to other funds and to lower expenditures in 2009. City of Lino Lakes, Minnesota Management's Discussion and Analysis December 31, 2009 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS (CONTINUED) Proprietary 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 $17,614,967, of which $3,634,255 are unrestricted. The increase in net assets of $568,512 was primarily due to operating income, contributions from the private sources and the primary government, and investment earnings. Total net assets in the sewer fund at the end of 2009 were $22,569,080, of which $6,477,952 was unrestricted. Net assets increased $214,087 during the current year resulting primarily from operating income and investment income. The water rates were adjusted in 2009, reflecting water conservation efforts through a tiered rate structure. Sewer Rates were unchanged in 2009. GENERAL FUND BUDGETARY HIGHLIGHTS The original budget was amended several times during the year reflecting donations and grants received primarily for police personnel and equipment, a reduction in expected state aid, and reallocating resources within the original budget. Revenues were $343,352 under budget for the year. This is due to a few major factors. The Governor used his unallotment powers to withhold the Market Value Credit the City was to receive from the State in 2009, amounting to over $241,000 of lost revenue. Property taxes were lower due to higher delinqencies in tax payments. Investment earnings, due to declining interest rates were also significantly under budget. Lower building activity due to the recessed economy and, therefore, fewer new construction building permits being issued was also a factor. State intergovernmental revenues for police PERA aid were at budgeted levels for the year due to sustained state funding in these areas. Local government 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 greater than expected traffic control contracts. Fines and forfeitures were under budgeted amounts due to reduced funding for patrolling for vehicular violations. Expenditures came in under the budgeted revenues by $140,628 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 amounts, and supplies costs were generally lower than anticipated. There were also net transfers from the general fund of $579,745, $55,549 over budgeted transfers. This resulted in a net fund balance decrease of $196,177 for the fiscal year. 18 City of Lino Lakes, Minnesota Management's Discussion and Analysis December 31, 2009 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, 2009, is $75,681,316 (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 3.9 %. Due to the economic recession, 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. Capital Assets at Year -End (Net of Accumulated Depreciation) Govemmental Activities Business -Type Activities Total 2009 2008 2009 2008 2009 2008 Land $ 2,809,059 $ 2,809,059 $ - $ $ 2,809,059 $ 2,809,059 Construction in Progress - 2,762,525 13,054 13,054 13,054 2,775,579 Buildings 3,945,724 4,162,757 - - 3,945,724 4,162,757 Office Equipment and Fumiture 408,514 443,209 - - 408,514 443,209 Vehicles 1,364,599 1,311,603 - - 1,364,599 1,311,603 Machinery and Shop Equipment 184,434 215,050 213,894 218,523 398,328 433,573 Other Equipment 311,081 351,186 - 311,081 351,186 Infrastructure 35 ,417,653 34,831,339 31,013,304 31,668,743 66,430,957 66,500,082 Capital Assets, Net $ 44,441,064 $ 46,886,728 $ 31,240,252 $ 31,900,320 $ 75,681,316 $ 78,787;048 Additional information on the City's capital assets can be found in the notes to the financial statements on pages 34 -57. Long -term debt At the end of the current fiscal year, the City of Lino Lakes had total bonded debt outstanding of $22,147,000. Of this amount $10,712,000 comprises tax supported debt, $10,265,000 is special assessment debt and $1,170,000 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 has issued 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. Outstanding Debt at Year -End Govemmental Activities Business -Type Activities Total 2009 2008 2009 2008 2009 2008 G.O. Bonds $ 10,712,000 $ 11,184,000 $ $ - $ 10,712,000 $ 11,184,000 G.O. Special Assessment Bonds 10,265,000 11,365,000 - 10,265,000 11,365,000 G.O. Revenue Bonds - 1,170,000 1,530,000 1,170,000 1,530,000 Total Outstanding Debt $ 20,977,000 $ 22,549,000 $ 1,170,000 $ 1,530,000 $ 22,147,000 $ 24,079,000 The City of Lino Lakes' total bonded debt decreased by $1,932,000 (8.0 %) during the current fiscal year. The key factors for the change include the issuance of $336,000 in 2009A Equipment Certificates and retirement of principal in the amount of $2,268,000 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 -57. City of Lino Lakes, Minnesota Management's Discussion and Analysis December 31, 2009 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES • The unemployment rate for the City of Lino Lakes at year -end is 7.8 %, which is a significant increase from a rate of 6.9% a year ago. This is slightly higher than the state's average unemployment rate of 7.4% and significantly lower than the national average of 10.0% at the end of 2009. • Residential growth in the City has slowed significantly over the last two 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 2009 as in 2007, and less than 85% of new home permits issued in 2005. This is expected to level off in 2010, with hopes of the beginning of a recovery of the housing market in 2011 -12. This, as well as falling property values of the existing tax base, will have a significant impact on the City's tax base for 2011 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, 2004, 2005, 2006, 2007 and 2008. While the City is exempted from local government aid, none of the allocated market value homestead credit was received in 2009 and none is expected to be received in 2010. • 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, 2009 Statement 1 Governmental Business -type Activities Activities Total ASSETS Cash and investments $ 16,698,796 $ 9,183,098 $ 25,881,894 Cash and investments with escrow agent 4,359,660 - 4,359,660 Accrued interest receivable 68,486 - 68,486 Accounts receivable 85,773 393,782 479,555 Due from other governments 256,181 - 256,181 Internal Balances (559,110) 559,110 - Taxes receivable 576,825 - 576,825 Special assessments receivable 8,859,284 49,759 8,909,043 Long -term notes receivable 225,000 - 225,000 Prepaid items 198,744 21,223 219,967 Inventory - 42,875 42,875 Unamortized bond issue costs 242,118 8,593 250,711 Permanently restricted cash and investments 100,000 100,000 Capital assets: Land 2,809,059 - 2,809,059 ..... Construction in progress - 13,054 13,054 Other capital assets, net of depreciation 41,632,005 31,227,198 72,859,203 Total assets 75,552,821 41,498,692 117,051,513 LIABILITIES Accounts payable 223,814 78,310 302,124 Salaries payable 203,480 14,549 218,029 "' Contracts and retainage payable 10,860 10,860 Accrued interest payable 389,046 17,554 406,600 Due to other governments 128 128 Non- current liabilities: Due within one year 2,293,056 398,448 2,691,504 Due in more than one year 23,691,188 805,784 24,496,972 Total liabilities 26,811,572 1,314,645 28,126,217 NET ASSETS Invested in capital assets, net of related debt 23,400,453 30,071,840 53,472,293 Restricted for: Debt service 9,314,474 9,314,474 Environmental improvements - nonexpendable 100,000 - 100,000 Unrestricted 15,926,322 10,112,207 26,038,529 Total net assets $ 48,741,249 $ 40,184,047 $ 88,925,296 The accompanying notes are an integral part of these basic financial statements. 21 CITY OF LINO LAKES, MINNESOTA STATEMENT OF ACTIVITIES December 31, 2009 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 $ 2,201,439 4,299,366 4,027,553 1,313,560 215,607 1,005,997 928,668 13,992,190 1,089,569 1,432,107 2,521,676 $ 16,513,866 Program Revenues Charges for Services $ 101,741 725,747 428,174 165,994 3,858 8,667 1,434,181 1,365,817 1,502,164 2,867,981 $ 4,302,162 Operating Grants and Contributions Contributions Capital Grants and $ 27,665 $ 185,440 425,161 3,200 41,331 682,797 62,710 62,710 $ 745,507 1,357,015 1,357,015 8,107 662 8,769 $ 1,365,784 General revenues: Taxes: Property taxes, levied for general purpose Franchise taxes Other taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on disposal of capital assets Transfers Total general revenues and transfers Change in net assets Net assets - beginning Net assets - ending The accompanying notes are nn integral part of these basic financial statements. 22 Statement 2 Net (Expense) Revenue and Changes in Net Assets Governmental Business -type Activities Activities Total $ (2,072,033) $ $ (2,072,033) (3,388,179) (3,388,179) (1,817,203) (1,817,203) (1,144,366) (1,144,366) (170,418) (170,418) (997,330) - (997,330) (928,668) - (928,668) (10,518,197) - (10,518,197) (10,518,197) 347,065 70,719 417,784 417,784 347,065 70,719 417,784 (10,100,413) 9,673,693 - 9,673,693 133,892 - 133,892 739 - 739 11,321 11,321 429,325 228,747 658,072 12,644 12,644 (136,068) 136,068 - 10,125,546 364,815 10,490,361 (392,651) 782,599 389,948 49,133,900 39,401,448 88,535,348 $ 48,741,249 $ 40,184,047 $ 88,925,296 23 CITY OF LINO LAKES, MINNESOTA BALANCE SHEET - GOVERNMENTAL FUNDS December 31, 2009 G.O. Area and Improvement I35E Unit Assets General Bonds 2005A Interchange Charge Cash and investments $ 5,246,546 $ 667 $ $ 2,138,830 Cash and investments with escrow agent - - 4,271,141 Accrued interest receivable 68,486 Accounts receivable 59,372 22,454 Due from other governmental units 154,681 - 100,000 lnterfund receivable - Taxes receivable: Delinquent 375,530 Due from county 68,535 - Delinquent tax increment - Special assessments receivable: Delinquent 77 2,399,798 - 155,676 Deferred 1,138 3,225,999 - 1,593,506 Due from county - - - 295 Long -term notes receivable - - Prepaid items 196,568 - Advances to other funds - - - 736,772 Total assets $ 6,170,933 $ 5,626,464 $ 4,371,141 $ 4,647,533 Liabilities and equity Liabilities: Interfund payable $ - $ 559,110 $ 61,843 $ Accounts payable 202,728 - 5,275 189 Salaries payable 203,368 - Contracts and retainage payable - Due to other governmental units 128 - - Advances from other funds - - Deferred revenue 376,745 5,625,797 1,749,182 Total liabilities 782,969 6,184,907 67,118 1,749,371 Fund balances: Reserved : Reserved for prepaid items 196,568 - Reserved for debt retirement - - - Reserved for advances to other funds - - - 736,772 Reserved for environmental improvements - - Reserved for long -term notes receivable - - - Urreserved: Designated: General fund 5,191,396 - Special revenue funds - - - Capital projects funds - - 4,192,882 2,161,390 Undesignated reported in: Debt service funds - (558,443) - Capital projects funds - - 111,141 - Permanent funds - Total fund balances 5,387,964 (558,443) 4,304,023 2,898,162 Total liabilities and fund balances $ 6,170,933 $ 5,626,464 $ 4,371,141 $ 4,647,533 The accompanying notes are an integral part of these basic financial statements. 24 Statement 3 Other Total Governmental Governmental Funds Funds 9,412,753 $ 16,798,796 88,519 4,359,660 68,486 3,947 85,773 1,500 256,181 825,571 825,571 42,836 418,366 7,841 76,376 82,083 82,083 55,645 2,61 1,196 1,426,636 6,247,279 514 809 225,000 225,000 2,176 198,744 736,772 $ 12,175,021 $ 32,991,092 $ 763,728 $ 1,384,681 15,622 223,814 112 203,480 10,860 10,860 128 736,772 736,772 1,607,200 9,358,924 3,134,294 11,918,659 2,176 198,744 3,457,349 3,457,349 736,772 100,000 100,000 225,000 225,000 5,191,396 93,956 93,956 5,420,273 11,774,545 (558,443) (273,851) (162,710) 15,824 15,824 9,040,727 21,072,433 $ 12,175,021 $ 32,991,092 25 CITY OF LINO LAKES, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMEN1 OF NET ASSETS December 31, 2009 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 $ 21,072,433 Land $ 2,809,059 Buildings, Net of Accumulated Depreciation 3,945,724 Office Equipment and Furniture, Net of Accumulated Depreciation 408,514 Vehicles, Net of Accumulated Depreciation 1,364,599 Machinery and Shop Equipment, Net of Accumulated Depreciation 184,434 Other Equipment, Net of Accumulated Depreciation 311,081 Infrastructure, Net of Accumulated Depreciation 35,417,653 44,441,064 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. Bond issuance costs are reported as expenditures in the governmental funds and are shown net of accumulated amortization on the statement of net assets. 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: 9,358,924 242,118 (389,046) Bonds Payable (25,237,000) Unamortized Premiums (111,186) Unamortized Discounts 36,560 Other Post Employment Benefits (44,734) Compensated Absence Payable (627,884) (25,984,244) Total Net Assets of Governmental Activities $ 48,741,249 The accompanying notes are 00 integral part of these basic financial statements. 26 CITY OF LINO LAKES, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS December 31, 2009 Revenue: General property taxes Tax increments Licenses and permits Intergovernmental Special assessments Charges for services Fines and forfeits Investment earnings Refunds Miscellaneous Total revenue Expenditures: Current: General government Public safety Public works Parks, recreation and forestry Conservation of natural resources Community development Capital outlay: General government Public safety Public works Parks, recreation and forestry Conservation of natural resources Debt service: Principal Interest and fiscal charges Total expenditures Revenue over (under) expenditures Other financing sources (uses): Transfer in Transfer out Sale of property Issuance of debt Premium on bonds issued Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance - Beginning of year Fund balance - December 31 General $ 7,939,231 307,714 435,034 6,917 376,503 111,807 105,443 20,332 136,029 9,439,010 1,905,895 4,122,352 1,262,774 927,562 194,235 601,620 11,282 24,000 5,722 9,055,442 383,568 (579,745) (579,745) (196,177) 5,584,141 G.O. Improvement Bonds 2005A 285,000 249,512 534,512 (534,512) (25,000) (25,000) (559,512) I35E Interchange 100,000 100,000 46,285 46,285 53,715 4,260,000 11,141 4,271,141 4,324,856 Statement 5 Area and Unit Charge 526,132 239,166 86,987 852,285 14,386 14,386 837,899 (588,700) (588,700) 249,199 1,069 (20,833) 2,648,963 $ 5,387,964 $ (558,443) $ 4,304,023 $ 2,898,162 The accompanying notes are an integral part of these basic financial statements. 27 Other Governmental Funds $ 908,208 714,131 723,982 435,946 162,494 236,895 7,718 349,227 3,538,601 12,351 642,195 178,444 15,231 403,475 12,832 165,314 281,265 1,391 1,623,000 745,297 4,080,795 (542,194) 1,413,985 (174,418) 35,700 336,000 1,61 1,267 1,069,073 Statement 5 Total Governmental Funds $ 8,847,439 714,131 307,714 1,259,016 968,995 778,163 111,807 429,325 28,050 485,256 13,929,896 1,918,246 4,122,352 1,965,640 1,106,006 209,466 1,005,095 12,832 176,596 281,265 25,391 5,722 1,908,000 994,809 13,731,420 198,476 1,413,985 (1,367,863) 35,700 4,596,000 11,141 4,688,963 4,887,439 7,971, 654 16,184,994 9,040,727 $ 21,072,433 28 CITY OF LINO LAKES, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVMES December 31, 2009 Statement 6 Net Change in Fund Balances -Total Governmental Funds $ 4,887,439 Amounts reported for govemmental 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 Gain 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: $ 639,265 (182,190) 12,644 (35,700) (2,879,683) (2,445,664) Issuance of note payable (4,260,000) Issuance of equipment certificates (336,000) Bond premium (11,142) Bond issuance costs 50,142 Repayment of bond principal 1,908,000 Change in accrued interest expense for general obligation bonds 22,324 Amortization of bond issuance costs (22,704) Amortization of bond premium 19,246 Amortization of bond discount (2,867) (2,633,001) 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, 2008 9,565,856 Deferred revenue - December 31, 2009 9,358,924 (206,932) 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 2009, compensated absence payable and other post employment benefits payable increased. Change in Net Assets of Governmental Activities The accompanying notes are an integral part of these basic financial statements. 29 5,507 $ (392,651) CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET ASSETS - PROPRIETARY FUNDS December 31, 2009 Statement 7 Assets _ Current assets: Cash and cash equivalents Accounts receivable 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 not being depreciated: Construction in progress 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: Interfund payable Accounts payable Salaries payable Contracts and retainage payable Accrued interest payable Due to other governmental units 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 $ 3,432,696 185,413 7,590 484 9,654 3,635,837 Sewer $ 5,750,402 208,369 559,110 484 11,569 6,529,934 Total 2009 $ 9,183,098 393,782 559,110 7,590 968 21,223 10,165, 771 41,201 - 41,201 42,875 - 42,875 8,593 - 8,593 13,054 13,054 48,690 - 48,690 122,811 341,392 464,203 19,727,063 21,227,039 40,954,102 19,898,564 21,581,485 41,480,049 (4,749,440) (5,490,357) (10,239,797) 15,149,124 16,091,128 31,240,252 15,241,793 16,091,128 31,332,921 18,877,630 22,621,062 41,498,692 51,418 7,369 17,554 375,000 11,724 463,065 793,412 6,186 799,598 1,262,663 26,892 7,180 11,724 45,796 6,186 6,186 51,982 78,310 14,549 17,554 375,000 23,448 508,861 793,412 12,372 805,784 1,314,645 13,980,712 16,091,128 30,071,840 3,634,255 6,477,952 10,112,207 $ 17,614,967 $ 22,569,080 $ 40,184,047 CITY OF LINO LAKES, MINNESOTA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - PROPRIETARY FUNDS December 31, 2009 Statement 8 Operating revenue: Charges for services Hook -up charges Water meter sales Other operating revenue Total operating revenue Water $ 1,334,055 8,750 10,874 12,138 1,365,817 Total Sewer 2009 $ 1,477,007 7,490 17,667 1,502,164 $ 2,811,062 16,240 10,874 29,805 2,867,981 Operating expenses: Personal services 187,201 172,744 359,945 Materials and supplies 269,925 43,147 313,072 Contractual services 60,814 91,973 152,787 MCES sewer charges - 625,353 625,353 Depreciation 423,218 446,788 870,006 Utilities 78,532 37,121 115,653 Other 21,262 14,981 36,243 Total operating expenses 1,040,952 1,432,107 2,473,059 Net income from operations 324,865 70,057 394,922 Other income (expense): Investment earnings 74,818 153,929 228,747 Special assessments 8,107 662 8,769 Bond interest (43,298) (43,298) Paying agent fees (5,319) - (5,319) Total other income (expense) 34,308 154,591 188,899 Net income before contributions and transfers 359,173 224,648 583,821 Contributions and transfers: Contributions from private sources Capital contributions from primary government Transfer out Total contributions and transfers Change in Net Assets Net Assets - January 1 Net Assets - December 31 The accompa v notes a hash finait( ial 31 62,710 - 62,710 182,190 182,190 (35,561) (10,561) (46,122) 209,339 (10,561) 198,778 568,512 214,087 782,599 17,046,455 22,354,993 39,401,448 $ 17,614,967 $ 22,569,080 $ 40,184,047 CITY OF LINO LAKES, MINNESOTA STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS December 31, 2009 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 Acquisition of capital assets 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: Contributions from Private Sources 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 - Water lines in the amount of $182,190 were contributed to the The accompanying notes are an integral part of these haste financial statements. Water $ 1,411,077 (447,818) (186,160) 777,099 (35,561) (35,561) (360,000) 60,675 (49,044) (348,369) 74,818 467,987 2,964,709 $ 3,432,696 $ 324,865 62,710 423,218 (17,451) (177) (42,875) 26,809 14,212 $ 777,099 $ 24,286 Sewer Total 2009 $ 943,159 $ 2,354,236 (747,775) (1,195,593) (171,098) (357,258) 24,286 801,385 (10,561) (10,561) 558 (27,748) (27,190) 153,929 140,464 5,609,938 $ 5,750,402 $ 70,057 (46,122) (46,122) (360,000) 61,233 (49,044) (27,748) (375,559) 228,747 608,451 8,574,647 $ 9,183,098 $ 394,922 62,710 446,788 870,006 (559,005) 52,234 Water Fund in 2009. (576,456) 52,057 (42,875) 41,021 $ 801,385 CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET ASSETS - FIDUCIARY FUNDS - AGENCY FUNDS December 31, 2009 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 2009 $ 773,845 10,520 784,365 3,700 780,665 $ 784,365 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Lino Lakes is a public corporation formed under Minnesota Statute 410. As such, the City is under home rule charter regulations and applicable statutory guidelines. The 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: 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, 2009 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 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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 sane 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, 2009 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 be authorized by the City Council with fund (contingency) reserves or additional revenues. 5. Formal budgetary integration is employed as a management control device during the year for the General Fund. 6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and calculate user charges. These debt service and budget amounts represent general obligation bond indenture provisions and net income for operation and capital maintenance and are not reflected in the financial statements. 37 IMMO CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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 total fund level. Monitoring of budgets is maintained at the expenditure category level (i.e., personal services, supplies; other services and charges; capital outlay) within each activity. 9. The City Council may authorize 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 market 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, 2009 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 2009 totaled $1,058,027. 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, 2009 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 Councii 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, 2009 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 Yaw Inimm Vomw CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Q. RECENTLY ISSUED ACCOUNTING STANDARDS Statement No. 51 Accounting and Financial Reporting for Intangible Assets. The provisions of this Statement are effective for periods beginning after June 15, 2009. GASB 51 addresses the recognition of intangible assets, including easements, water rights, timber rights, patents, trademarks, and computer software. Additionally, it establishes a specified- conditions approach to recognizing intangible assets that are internally generated. GASB 51 provides guidance on determining the useful life of intangible assets when contractual or legal provisions limit the length of their life. This statement is effective for periods beginning after June 15, 2009 and the provisions of this statement are generally required to be applied prospectively beginning in fiscal year 2010 and thereafter. Statement No. 54 Fund Balance Reporting and Governmental Fund Type Definitions. The requirements of this Statement are effective for financial statement periods beginning after June 15, 2010. Governments that wish to implement earlier than that date are encouraged to do so. The effect these standards may have on future financial statements is not determinable at this time. Note 2 DEPOSITS AND INVESTMENTS 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, 2009 is $17,331,352 and $17,489,658, 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 $4,271,141 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, 2009 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 finial 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 market value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its market 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 market 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 $ 2,158,304 $ 2,158,304 $ $ - $ Federal Farm Credit Banks 310,500 310,500 Federal Home Loan Bank 2,525,832 249,610 1,727,062 549,160 Federal Home Loan Mortgage Corp. 1,591,014 1,591,014 - Federal National Mortgage Assn. 1,252,098 1,005,690 246,408 Municipal Bonds 775,635 100,858 100,947 573,830 - Mutual Fund 273,184 273,184 - - Total $ 8,886,567 $ 2,532,346 $ 350,557 $ 5,208,096 $ 795,568 43 w CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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 $ 2,158,304 Federal Farm Credit Banks Aaa 310,500 Federal Home Loan Bank Aaa 2,525,832 Federal Home Loan Mortgage Corp. Aaa 1,591,014 Federal National Mortgage Assn. Aaa 1,252,098 Municipal Bonds Aaa 775,635 Mutual Fund Not Rated 273,184 Total $ 8,886,567 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. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 2 DEPOSITS AND INVESTMENTS (CONTINUED) 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 $ 2,525,832 28.42% Federal Home Loan Mortgage Corporation 1,591,014 17.90% Federal National Mortgage Association 1,252,098 14.09% Minnesota Municipal Money Market Trust Fund 2,158,304 24.29% 45 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 • Note 3 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2009 was as follows: Beginning Balance Increases Ending Decreases Transfers Balance Governmental Activities: Capital Assets, Not Bcing Depreciated: Land $ 2,809,059 $ - $ $ $ 2,809,059 Construction in Progress 2,762,525 66,980 (2,829,505) - Total Capital Assets, Not Being Depreciated 5,571,584 66,980 (2,829,505) 2,809,059 Capital Assets, Being Depreciated: Buildings 6,499,752 - 6,499,752 Office Equipment and Furniture 1,074,267 62,231 (2,781) 1,133,717 Vehicles 2,264,657 327,864 (243,558) 2,348,963 Machinery and Shop Equipment 659,702 - (20,000) - 639,702 Other Equipment 980,308 - 980,308 ".. Infrastructure 72,643,792 3,011,695 (182,190) 75,473,297 Total Capital Assets, Being Depreciated 84,122,478 3,401,790 (266,339) (182,190) 87,075,739 Accumulated Depreciation for: ....,,. Buildings (2,336,995) (217,033) (2,554,028) Office Equipment and Furn iture (631,058) (96,926) 2,781 (725,203) Vehicles (953,054) (251,812) 220,502 - (984,364) Machinery and Shop Equipment (444,652) (30,616) 20,000 - (455,268) ..„ Other Equipment (629,122) (40,105) - (669,227) Infrastructure (37,812,453) (2,243,191) (40,055,644) Total Accumulated Depreciation (42,807,334) (2,879,683) 243,283 (45,443,734) Total Capital Assets, Being Depreciated, Net 41,315,144 522,107 (23,056) (182,190) 41,632,005 Governmental Activities Capital Assets, Net $ 46,886,728 $ 589,087 $ (2,852,561) $ (182,190) $ 44,441,064 Depreciation expense was charged to governmental functions as follows: Governmental Activities: w General Government $ 273,283 Public Safety 131,609 Public Services 2,297,605 Parks, Recreation and Forestry 176,336 Vmwm Conservation of Natural Resources 350 Community Development 500 Total Depreciation Expense, Governmental Activities $ 2,879,683 Beginning Balance Increases Ending Decreases Transfers Balance Business -Type Activities: Capital Assets, Not Being Depreciated: Construction in Progress $ 13,054 $ - $ - $ - $ 13,054 Total capital assets, not being depreciated 13,054 - - - 13,054 Capital Assets, Being Depreciated: Buildings 48,690 - 48,690 ,+ Machinery and Shop Equipment 436,455 27,748 - 464,203 Water and Sewer Lines 40,771,912 - - 182,190 40,954,102 Total Capital Assets, Being Depreciated 41,257,057 27,748 - 182,190 41,466,995 Accumulated Depreciation for: Buildings (48,690) - - - (48,690) Machinery and Shop Equipment (217,932) (32,377) - (250,309) Water and Sewer Lines (9,103,169) (837,629) - (9,940,798) Total Accumulated Depreciation (9,369,791) (870,006) - (10,239,797) '� Total Capital Assets, Being Depreciated, Net 31,887,266 (842,258) 182,190 31,227,198 Business -Type Capital Assets, Net $ 31,900,320 $ (842,258) $ - $ 182,190 $ 31,240,252 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 4 CITY INDEBTEDNESS City indebtedness at December 31, 2009 is composed of the following: Final Issue Maturity Interest Original Date Date Rate Issue Payable 12/31/2009 Governmental Activities: General Obligation Bonds: 2007A Equipment Certificates 2/1/2007 12/31/2010 4.00% $ 160,000 $ 55,000 2008A Equipment Certificates 2/1/2008 12/31/2011 4.00% 209,000 146,000 2009A Equipment Certificates 4/1/2009 12/31/2012 3.00% 336,000 336,000 Civic Complex Lease Rev. Bonds, Series I998A 8/1/1998 2/1/2019 4.20 % -5.35% 5,350,000 115,000 Public Project Revenue Ref. Bonds, Series 1999C 9/1/1999 2/1/2010 4.75 % -5.10% 980,000 90,000 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% 570,000 470,000 G.O. CIP Refunding Bonds, Series 2006E 11/1/2006 2/1/2018 4.00% 2,990,000 2,990,000 G.O. Tax Increment Financing Bonds, Series 2007A 7/15/2007 2/1/2024 4.00 % - 4.125% 4,215,000 4,050,000 Total General Obligation Bonds 17,270,000 10,712,000 Special Assessment Bonds: G.O. Improvement Bonds, Series 2002A 8/1/2002 2/1/2013 3.00 % -4.10% 645,000 110,000 G.O. Improvement Bonds, Series 2002B 8/1/2002 2/1/2013 3.20 % - 5.55% 2,110,000 975,000 G.O. Improvement Refunding Bonds, Series 2003A 12/1/2003 2/1/2019 2.00%-4.25% 2,090,000 660,000 G.O. Improvement Bonds, Series 2003B 12/1/2003 2/1/2014 3.20 % -5.60% 250,000 150,000 G.O. Improvement and Utility Bonds, Series 2004A 11/15/2004 2/1/2020 1.90% -4.45% 1,330,000 1,040,000 G.O. Improvement Bonds, Series 2005A 11/1/2005 2/1/2021 4.35% -5.15% 5,550,000 4,795,000 G.O. Improvement Refunding Bonds, Series 2005B 11/1/2005 2/1/2015 3.75 % -5.00% 3,755,000 2,535,000 Total Special Assessment Bonds 15,730,000 10,265,000 Total Bonds 33,000,000 20,977,000 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) (36,560) Unamortized Bond Premiums 180,247 111,186 Compensated Absences Payable N/A 627,884 Other Post Employment Benefit Plan N/A 44,734 Total Governmental Activities $ 37,394,757 $ 25,984,244 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 $ 1,170,000 Total Revenue Bonds 1,740,000 1,170,000 Unamortized Bond Discounts (4,002) (1,588) Compensated Absences Payable N/A 35,820 Total Business -Type Activities $ 1,735,998 $ 1,204,232 47 Vow CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 4 CITY INDEBTEDNESS (CONTINUED) The following is a schedule of changes in City indebtedness for the year ended December 31, 2009: Payable Payable Due Within 12/31/2008 Issues Payments 12/31/2009 One Year Governmental activities: Bonded debt: General Obligation $ 11,184,000 $ 336,000 $ 808,000 $ 10,712,000 $ 741,000 ,.,, Special Assessment 11,365,000 - 1,100,000 10,265,000 1,125,000 Unamortized Bond Discounts (39,427) (2,867) (36,560) - Unamortized Bond Premiums 119,290 11,142 19,246 111,186 - Note Payable - Anoka County - 4,260,000 - 4,260,000 � , Compensated Absences Payable 655,644 550,369 578,129 627,884 427,056 Other Post Employment Benefit Plan 22,481 41,152 18,899 44,734 - Total Governmental Activities 23,306,988 5,198,663 2,521,407 25,984,244 2,293,056 Business -Type Activities: Revenue Bonds Unamortized Bond Discounts Compensated Absences Payable Total Business -Type Activities 1,530,000 (2,350) 37,224 31.281 1,564,874 31,281 360,000 1,170,000 (762) (1,588) 32,685 35,820 391,923 1,204,232 375,000 23,448 398,448 Total $ 24,871,862 $ 5,229,944 $ 2,913,330 $ 27,188,476 $ 2,691,504 Imar All long -term bonded indebtedness outstanding at December 31, 2009 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, 2010 $ 1,866,000 $ 986,489 $ 375,000 $ 35,471 $ 3,262,960 2011 1,963,000 951,774 390,000 21,701 3,326,475 2012 2,048,000 866,530 405,000 7,341 3,326,871 2013 2,065,000 774,756 - - 2,839,756 2014 1,885,000 685,903 - - 2,570,903 2015 -2019 9,595,000 2,230,906 - - 11,825,906 2020 -2024 5,815,000 805,449 - - 6,620,449 Total $ 25,237,000 $ 7,301,807 $ 1,170,000 $ 64,513 $ 33,773,320 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. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 4 CITY INDEBTEDNESS (CONTINUED) Public Project Revenue Bonds and Civic Complex Lease Revenue Bonds — These bonds were issued by the Economic Development Authority (EDA) of Lino Lakes for the purpose of financing the construction of public facilities. Pursuant to Minnesota Statutes and a lease purchase contract between the EDA and the City of Lino Lakes, a Trust Indenture between the EDA and a regional bank has been established for the purpose of financing payment of these bonds. The City has pledged rental payments in amounts equal to the debt service requirements and plans to annually appropriate City funds available for this purpose. As required by bond covenant, a reserve account has been established with a trustee, which is to be used to pay principal and interest on the bonds in the event that other available resources are inadequate to do so. In December 2009, the City of Lino Lakes has 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. 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 2009 is computed as follows: 12/31/09 Market value $ 2,134,558,200 Applicable percentage 3.0% Debt Limit 64,036,746 Amount of debt applicable to debt limit: Total bonded debt Less: Special assessment bonds Public project revenue bonds Tax abatement bonds Utility revenue bonds Tax increment financing bonds Revenue bonds Total debt applicable to debt limit Legal debt margin 49 22,147,000 (10,265,000) (90,000) (2,460,000) (470,000) (4,050,000) (1,170,000) 3,642,000 $ 60,394,746 Maw Wow law CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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 Public Employees Retirement Fund (PERF) 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. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for 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 PERF and PEPFF members hired prior to July 1, 1989 whose annuity is calculated using Method I, 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 PERF 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. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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. PERF 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 2009. The City is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERF members, 6.75% for Coordinated Plan PERF members, and 14.1% for PEPFF members. Employer contribution rates for the Coordinated Plan and PEPFF will increase to 7.0% and 14.1 %, respectively, effectively January 1, 2010. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 2009, 2008, and 2007 were $186,454, $183,456 and $172,504, respectively. The City's contributions to the Public Employees Police & Fire Fund for the years ended December 31, 2009, 2008, and 2007 were $303,949, $268,569, and $219,592, 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 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, 2009 as follows: Fund Balance Deficit Dedicated Parks $ (628,488) Tax Increment Financing 1 -11 (766,646) G.O. Improvement Bonds 2005A (558,443) 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 fund had expenditures in excess of budget for 2009: Budget Actual Excess Program Recreation Special Revenue Fund $ 159,085 $ 178,444 $ (19,359) 51 —' CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 9 CONTINGENCIES Litigation - The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs. Federal and State Funds - The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the . _ terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2009. Mow 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. 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 These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 2009. Future scheduled tax levies for all bonds outstanding at December 31, 2009 totaled $23,716,179. Note 11 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY At December 31, 2009, 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, 2009 are shown on the various balance sheets as segregations of the fund equity. A summary of such designations and reservations at December 31, 2009 is as follows: Governmental Activity: General Fund: Reserved for Prepaid Items $ 196,568 Designated for Cash Flow Reserve 5,191,396 135E Interchange : Designated for Capital Improvements 4,192,882 Area and Unit Charge: Reserved for Advance to Other Funds 736,772 Designated for Capital Improvements 2,161,390 Other Nonmajor Governmental Funds: Reserved for Prepaid Items 2,176 Reserved for Debt Retirement 3,457,349 Reserved for Environmental Improvements 100,000 Reserved for Long -Term Notes Receivable 225,000 Designated for Recreation Purposes 93,956 Designated for Capital Improvements 5,420,273 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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 2009 was $100,326. 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, 2009 are as follows: Governmental Activity: G.O. Improvement Bonds 2005A I35E Interchange Other Nonmajor Governmental Funds Business -Type Activity: Sewer Fund Receivable 825,571 559,110 Payable 559,110 61,843 763,728 $ 1,384,681 $ 1,384,681 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, 2009 are as follows: Receivable Payable Governmental Activity: Area and Unit Charge $ 736,772 $ Other Nonmajor Governmental Funds 736,772 $ 736,772 $ 736,772 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 2009 are as follows: Transfer In Transfer Out Governmental Activity: General Fund $ $ (579,745) Improvement Bonds of 2005A (25,000) Area and Unit Charge (588,700) Other Nonmajor Governmental Funds 1,413,985 (174,418) Total Governmental Activity 1,413,985 (1,367,863) Business -Type Activity: Water Fund (35,561) Sewer Fund (10,561) Total Business -Type Activity (46,122) Total $ 1,413,985 $ (1,413,985) In addition to the above transfers, a capital transfer of $182,190 was made from the governmental funds to the business type funds for infrastructure. Interfund transfers are other financing sources and uses within the fund financial statements. The purpose of the transfers are to provide funding for capital improvement projects, capital outlay, and debt service as well as to open and close funds. 53 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 I I 1 i Man 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, 2009, two series of Industrial Revenue Bonds were outstanding with aggregate remaining principal balances of $985,000 and $1,200,000, respectively, and one series Commercial Revenue Notes was outstanding with an aggregate remaining principal balance of $3,028,831. Note 17 LEASE COMMITMENT The City of Lino Lakes entered into an agreement dated December 8, 1997 to lease space within the City Hall NimM 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: Amount 2010 $ 120,000 2011 60,000 Total $ 180,000 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 17 LEASE COMMITMENT (CONTINUED) The prorated carrying value of the building being leased is as follows: Building $ 929,970 Less: Accumulated Depreciation (309,990) Net $ 619,980 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 2009, the City of Lino Lakes' contributions to the District were as follows: Operating $ 512,287 Capital 69,000 Total $ 581,287 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, 2009 are as follows: Total Assets $ 1,183,199 Total Liabilities 129,002 Total Net Assets 1,054,197 Total Operating Revenue 852,355 Total Operating Expenses 717,181 Anoka County The City of Lino Lakes has entered into a joint powers agreement with Anoka County for the reconstruction of County State Aid Highway 14 (Main Street) and I -35E Interchange County Project. NOM Mows alb irmdt imh a. VOW CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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. OWN Nliow 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, 2009 there were approximately 63 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 2009, the City contributed $18,889 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 $ 41,152 Annual OPEB Cost (Expense) 41,152 Contributions Made (18,899) Increase in Net OPEB Obligation 22,253 Net OPEB Obligation- Beginning of Year 22,481 Net OPEB Obligation- End of Year $ 44,734 The City's annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB obligation for 2009: Percentage Fiscal Annual of Annual Net Year OPEB OPEB Cost OPEB Ended Cost Constributed Obligation 12/31/2008 $ 41,152 45.4% $ 22,481 12/31/2009 41,152 45.9% 44,734 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 %. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 19 OTHER POST EMPLOYMENT BENEFIT PLAN (CONTINUED) D. Funded Status and Funding Progress (Continued) 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, 2009 was 28 years. Note 20 SUBSEQUENT EVENTS Subsequent to year -end, the City issued $170,000 Certificates of Indebtedness for the purpose of financing the purchase of capital equipment. Subsequent to year -end, the City issued $1,015,000 General Obligation Improvement and Utility Revenue Refunding Bonds, Series 2010A. 57 REQUIRED SUPPLEMENTARY INFORMATION CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2009 Statement 11 Page 1 of 7 2009 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenue: General property taxes: Current and delinquent $ 8,125,172 $ 8,137,672 $ 6,989,837 $ (1,147,835) Fiscal disparities - - 949,394 949,394 Total general property taxes 8,125,172 8,137,672 7,939,231 (198,441) Licenses and permits: Business 43,400 43,400 40,959 (2,441) Non - business 449,650 449,650 266,755 (182,895) ._ Total licenses and permits 493,050 493,050 307,714 (185,336) State: Market Value Credit 250,000 4,916 4,916 Police state aid 185,000 185,000 185,440 440 - MSA maintenance 167,000 167,000 179,661 12,661 Other 15,000 15,000 25,528 10,528 County /Regional: - Solid waste 35,000 35,000 35,631 631 Other 5,000 5,000 3,858 (1,142) Total intergovernmental 657,000 407,000 435,034 28,034 Special Assessments: - Penalties and Interest 5,000 5,000 6,917 1,917 Charges for services: General government 25,500 25,500 21,021 (4,479) Planning /engineering 15,000 15,000 5,427 (9,573) Fees retained from collection for other governments - SAC /surcharge 4,000 4,000 974 (3,026) Administrative charge - other funds 50,000 50,000 37,348 (12,652) - Aerial map charge - other funds 4,000 4,000 3,240 (760) Public safety 211,000 214,000 308,493 94,493 Total charges for services 309,500 312,500 376,503 64,003 Fines and forfeits 130,000 130,000 111,807 (18,193) Investment earnings 175,000 125,000 105,443 (19,557) Refunds 15,000 15,000 20,332 5,332 Miscellaneous: Gas franchise fees 120,000 120,000 100,326 (19,674) Cable TV 30,000 30,000 33,566 3,566 Donations 5,000 7,140 2,040 (5,100) ... Other - 97 97 Total miscellaneous 155,000 157,140 136,029 (21,111) Total Revenue 10,064,722 9,782,362 9,439,010 (343,352) 58 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2009 2009 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 $ 42,513 $ 42,513 $ 34,963 $ 7,550 Supplies 500 500 221 279 Other services and charges 39,150 39,150 51,432 (12,282) Contractual Services 14,792 14,792 15,356 (564) Total mayor and council 96,955 96,955 101,972 (5,017) Elections: Current: Personal services 11,344 11,344 6,354 4,990 Supplies 650 650 325 325 Other services and charges 1,970 1,970 1,560 410 Contractual Services 500 500 500 Total elections 14,464 14,464 8,239 6,225 Administration: Current: Personal services 506,522 447,371 395,581 51,790 Supplies - 112 (112) Other services and charges 24,670 24,670 6,627 18,043 Contractual Services 9,480 9,480 9,476 4 Total administration 540,672 481,521 411,796 69,725 Finance: Current: Personal services 323,297 323,297 313,088 10,209 Supplies 1,500 1,500 702 798 Other services and charges 104,825 104,825 98,147 6,678 Contractual Services 88,400 88,400 83,355 5,045 Total finance 518,022 518,022 495,292 22,730 Cable TV: Current: Personal services 2,530 2,530 1,564 966 Supplies 50 50 - 50 Capital outlay 600 600 600 Total cable TV 3,180 3,180 1,564 1,616 Consultants: Current: Legal 150,000 150,000 155,925 (5,925) 59 CITY OF LINO LAKES, MINNESOTA Statement 11 GENERAL FUND Page 3 of 7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2009 2009 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) General government (continued): Engineering/planning: Current: Contractual services $ 200,000 $ 200,000 $ 213,552 $ (13,552) Total engineering /planning 200,000 200,000 213,552 (13,552) Senior Service: Current: Personal services 36,530 36,530 32,504 4,026 Other services and charges 2,700 2,700 2,146 554 Capital outlay: 500 500 - 500 Total senior service 39,730 39,730 34,650 5,080 Charter commission: Current: Other services and charges 2,200 2,200 2,803 (603) Total charter commission 2,200 2,200 2,803 (603) General government buildings: Current: _ Personal services 96,284 96,284 88,521 7,763 Supplies 46,500 46,500 37,433 9,067 Other services and charges 334,880 334,880 329,584 5,296 _ Contractual services 35,000 35,000 24,564 10,436 Total general government buildings 512,664 512,664 480,102 32,562 Total general government 2,077,887 2,018,736 1,905,895 60 112,841 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2009 2009 Statement 11 Page 4 of 7 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Public safety: Police: Current: Personal services $ 3,051,523 $ 2,973,912 $ 3,026,517 $ (52,605) Supplies 33,000 38,140 37,616 524 Other services and charges 88,800 88,800 116,032 (27,232) Contractual services 37,200 37,200 43,569 (6,369) Capital outlay 12,875 12,875 10,594 2,281 Total police 3,223,398 3,150,927 3,234,328 (83,401) Fire protection: Current: Contractual services 512,288 512,288 512,287 1 Building inspection: Current: Personal services 341,819 341,819 362,629 (20,810) Supplies 1,130 1,130 828 302 Other services and charges 13,900 13,900 8,843 5,057 Contractual services 1,750 1,750 14,031 (12,281) Capital outlay - - 688 (688) Total building inspection 358,599 358,599 387,019 (28,420) Total public safety 4,094,285 4,021,814 4,133,634 (111,820) Public works: Streets: Current: Personal services 607,538 575,071 543,524 31,547 Supplies 118,500 118,500 104,651 13,849 Other services and charges 85,750 85,750 106,072 (20,322) Contractual services 172,500 172,500 170,310 2,190 Capital outlay 4,000 4,000 4,000 Total streets 988,288 955,821 924,557 31,264 Fleet: Current: Personal services 101,908 101,908 105,797 (3,889) Supplies 264,000 264,000 198,867 65,133 Other services and charges 55,070 55,070 31,858 23,212 Contractual services 2,700 2,700 1,695 1,005 Total fleet 423,678 423,678 338,217 85,461 Total public works 1,411,966 1,379,499 1,262,774 116,725 61 UMW CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2009 2009 Statement 11 Page 5 of 7 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Parks and recreation: - Parks: Current: Personal services $ 518,860 $ 486,393 $ 493,316 $ (6,923) Supplies 42,000 42,000 43,528 (1,528) Other services and charges 53,200 53,200 58,009 (4,809) Contractual services 35,950 35,950 57,997 (22,047) Total parks 650,010 617,543 652,850 (35,307) Recreation: Current: Personal services 283,107 283,107 261,579 21,528 Supplies 2,500 2,500 2,413 87 Other services and charges 16,600 16,600 9,673 6,927 Contractual services 800 800 1,047 (247) - Capital outlay 24,000 24,000 24,000 - Total recreation 327,007 327,007 298,712 28,295 Total parks and recreation Conservation of natural resources: Forestry: 977,017 944,550 951,562 (7,012) Current: Personal services 52,309 52,309 52,748 (439) Supplies 1,400 1,400 1,469 (69) - Other services and charges 800 800 345 455 Contractual services 9,100 9,100 1,898 7,202 Capital outlay 5,000 5,000 4,337 663 Total forestry 68,609 68,609 60,797 7,812 Environmental: Current: Personal services 89,653 89,653 86,471 3,182 Supplies 2,100 2,100 950 1,150 Other services and charges 14,155 14,155 10,559 3,596 Contractual services 1,250 1,250 534 716 Capital outlay 1,000 1,000 1,385 (385) Total environmental 108,158 108,158 99,899 8,259 62 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2009 2009 Statement 11 Page 6 of 7 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Conservation of natural resources (continued): Solid waste abatement: Current: Personal services $ 30,172 $ 30,172 $ 30,828 $ (656) Other services and charges 700 700 20 680 Contractual services 8,000 8,000 8,413 (413) Total solid waste abatement 38,872 38,872 39,261 (389) Total conservation of natural resources 215,639 215,639 199,957 15,682 Community Development: Community Development: Current: Personal services 248,006 248,006 236,958 11,048 Supplies 200 200 88 112 Other services and charges 9,280 9,280 8,508 772 Contractual Services 1,400 1,400 2,034 (634) Total community development 258,886 258,886 247,588 11,298 Economic Development: Current: Personal services 94,135 94,135 90,414 3,721 Supplies 200 200 200 Other services and charges 11,600 11,600 2,481 9,119 Contractual services 800 800 1,120 (320) Total economic development 106,735 106,735 94,015 12,720 Planning and zoning commission: Current: Personal services 178,425 178,425 171,648 6,777 Supplies 500 500 500 Other services and charges 26,800 26,800 21,881 4,919 Contractual services 62,450 62,450 66,488 (4,038) Total planning and zoning commission 268,175 268,175 260,017 8,158 Total community development 633,796 633,796 601,620 32,176 Other : Contingency 44,132 44,132 44,132 Total Expenditures 9,454,722 9,258,166 9,055,442 202,724 Revenue over Expenditures 610,000 524,196 383,568 (140,628) 63 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -- Year Ended December 31, 2009 temp Statement 11 Page 7 of 7 2009 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Other financing sources (uses): Transfer out $ (610,000) $ (524,196) $ (579,745) $ (55,549) Net increase (decrease) in fund balance $ - $ - (196,177) $ (196,177) Fund Balance - January 1 5,584,141 Fund balance - December 31 $ 5,387,964 64 CITY OF LINO LAKES, MINNESOTA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2009 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: Mayor and council $ 96,955 $ 101,972 $ (5,017) Consultants 150,000 155,925 (5,925) Engineering/planning 200,000 213,552 (13,552) Charter commission 2,200 2,803 (603) Public safety Police 3,150,927 3,234,328 (83,401) Building inspection 358,599 387,019 (28,420) Parks and recreation: Parks 617,543 652,850 (35,307) Conservation of natural resources: Solid waste abatement 38,872 39,261 (389) 65 Statement 12 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFIT PLAN December 31, 2009 Actuarial UAAL as a Actuarial Accrued Percentage "" Actuarial Value of Liability Unfunded Funded Covered of Covered 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% 66 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) 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. CSAH 14/8 Reconstruction Fund - established to account for the costs associated with the reconstruction of County and State Highways 14 and 8. 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, 2009 Special Revenue Debt Service Lease Economic Special Certificates Revenue Development Program Revenue of Bonds Authority Recreation Subtotal Indebtedness of 1998A Assets Cash and investments $ - $ 96,489 $ 96,489 $ 121,149 $ 390,676 Cash and investments with escrow agent - - - 88,519 Accounts receivable - 447 447 - -' Due from other governmental units - - - Interfund receivable - - - - - Taxes receivable: Delinquent - - 11,972 7,430 Due from county - - 2,204 1,109 Delinquent tax increment - - Special assessments receivable: Delinquent - - - - Deferred - - Due from county - Long -term notes receivable 225,000 - 225,000 - Prepaid items 2,176 2,176 - Advances to other funds - Land held for resale - - - Total assets Liabilities and Fund Balance $ 225,000 $ 99,112 $ 324,112 $ 135,325 $ 487,734 Liabilities: Interfund payable $ $ - $ Accounts payable 2,868 Salaries payable 112 Contracts and retainage payable Deferred revenue Total liabilities - 2,980 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 Undesignated Total fund balance (deficit) 225,000 2,868 112 11,972 7,430 2,980 11,972 7,430 2,176 2,176 - - 123,353 480,304 93,956 225,000 93,956 225,000 96,132 321,132 123,353 480,304 Total liabilities and fund balance $ 225,000 $ 99,112 $ 324,112 $ 135,325 $ 487,734 67 Mow Ilomm Mom Statement 13 Page 1 of 3 Debt Service (Continued) Public Project Refunding Bonds of 1999C Improvement Bonds of 2002A Improvement Bonds of 2002B Improvement Refunding Bonds of 2003A $ 358,054 $ 250,676 $ 798,878 $ 96,244 5,016 875 77,477 299,368 154,916 Improvement Bonds of 2003B Improvement and Utility Revenue Bonds of 2004A $ 73,460 $ 926 163 5,868 38,233 .� $ 363,945 $ 328,153 $ 1,098,246 $ 251,160 $ 118,650 Immo 5,016 5,016 358,929 77,477 77,477 250,676 299,368 299,368 798,878 358,929 250,676 798,878 $ 363,945 $ 328,153 $ 1,098,246 $ 251,160 $ 118,650 $ 434,392 $ 871,236 $ - $ 154,916 154,916 96,244 Improvement Bonds of 2005B 286,879 $ 599,445 2,968 144,545 5,214 941 8,611 256,563 462 $ 434,392 $ 871,236 - $ 45,027 45,027 73,623 96,244 73,623 147,513 147,513 286,879 270,388 270,388 600,848 286,879 600,848 CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2009 Debt Service (continued) Tax Utility CIP Abatement Revenue Refunding TIF Debt Bonds Bonds Bonds Bonds Service 2006C 2006D 2006E 2007A Subtotal Assets Cash and investments $ 55,152 $ 34,836 $ 140,040 $ 155,038 $ 3,360,527 Cash and investments with escrow agent - - - 88,519 Accounts receivable - - - - Due from other governmental units - - - - Interfund receivable - - - - - Taxes receivable: - Delinquent 4,572 - 7,706 - 42,836 Due from county 881 - 1,668 - 7,841 Delinquent tax increment - - - - - Special assessments receivable: Delinquent 1,302 - - 18,749 Deferred 146,130 - - 1,117,232 Due from county - - - 462 Long -term notes receivable - - - - - Prepaid items - - - - - Advances to other funds - - - - - Land held for resale - - - - - Total assets $ 60,605 $ 182,268 $ 149,414 $ 155,038 $ 4,636,166 Liabilities and Fund Balance Liabilities: Interfund payable $ - $ - $ - $ - $ - Accounts payable - - - - Salaries payable - - - - - Contracts and retainage payable - - - - Deferred revenue 4,572 147,432 7,706 - 1,178,817 Total liabilities 4,572 147,432 7,706 - 1,178,817 Fund balance (deficit): Reserved for prepaid items - Reserved for debt retirement 56,033 34,836 141,708 155,038 3,457,349 Reserved for environmental improvement - Reserved for long -term notes receivable Unreserved: Designated: Recreation programs Capital improvements Undesignated Total fund balance (deficit) 56,033 34,836 141,708 155,038 3,457,349 Total liabilities and fund balance $ 60,605 $ 182,268 $ 149,414 $ 155,038 $ 4,636,166 69 + 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 $ 1,765,288 $ 206,053 $ 303,711 $ 661,930 $ 387,959 $ 241,913 $ 15,207 1,500 825,571 - 1,476 29 35,391 - - 10,365 181 298,858 - - - 52 $ 1,765,288 $ 206,053 $ 1,141,123 $ 661,930 $ 388,169 $ 577,714 $ 15,207 - $ - $ $ - $ - $ $ 126 - 7,999 - - 643 - - 11,841 - 210 334,249 126 - 19,840 - 210 334,892 1,765,162 206,053 661,930 387,959 242,822 15,207 - - 1,121,283 - - - - 1,765,162 206,053 1,121,283 661,930 387,959 242,822 15,207 $ 1,765,288 $ 206,053 $ 1,141,123 $ 661,930 $ 388,169 $ 577,714 $ 15,207 CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2009 Assets Cash and investments Cash and investments with escrow agent Accounts receivable Due from other governmental units Interfund receivable Taxes receivable: Delinquent Due from county Delinquent tax increment Special assessments receivable: Delinquent Deferred Due from county Long -term notes receivable Prepaid items Capital Projects (continued) Tax Tax Tax Tax Increment Increment Increment Increment Financing Financing Financing Financing Dedicated 1 -5 1 -9 1 -10 1 -11 Parks $ 51,401 $ 352,110 $ 85,118 $ - $ 104,784 82,083 3,500 Total assets $ 51,401 $ 352,110 $ 85,118 $ 82,083 $ 108,284 Liabilities and Fund Balance Liabilities: Interfund payable $ - $ - $ - $ 763,728 $ Accounts payable 417 200 451 2,918 Salaries payable - - - Contracts and retainage payable Advances from other funds - - - - 736,772 Deferred revenue - - - 82,083 Total liabilities 417 200 451 848,729 736,772 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 50,984 351,910 84,667 Undesignated - - - (766,646) (628,488) Total fund balance (deficit) 50,984 351,910 84,667 (766,646) (628,488) Total liabilities and fund balance $ 51,401 $ 352,110 $ 85,118 $ 82,083 $ 108,284 71 Immo Statement 13 Page 3 of 3 Capital Projects (Continued) Permanent Fund Office Equipment CSAH 14/8 Legacy Woods Capital Foxborough Municipal Revolving Reconstruction Edge Projects Environment - State Aid Fund Project Improvement Subtotal Fund Ilnwr ■ $ 910,592 $ 222,550 $ Total 2009 $ 531,297 $ 5,839,913 $ 115,824 $ 9,412,753 - - 88,519 3,500 - 3,947 - 1,500 - 1,500 - - 825,571 - 825,571 - - - 42,836 - - - 7,841 - 82,083 - 82,083 $ 910,592 $ 222,550 $ 36,896 - 55,645 309,404 - 1,426,636 52 - 514 225,000 2,176 $ 531,297 $ 7,098,919 $ 115,824 $ 12,175,021 $ - $ $ 763,728 $ - $ 763,728 12,754 - 15,622 112 10,860 10,860 - 10,860 736,772 - 736,772 428,383 - 1,607,200 10,860 1,952,497 - 3,134,294 2,176 3,457,349 100,000 100,000 225,000 - - - - - 93,956 910,592 222,550 520,437 5,420,273 5,420,273 - - - - (273,851) 15,824 (258,027) 910,592 222,550 520,437 5,146,422 115,824 9,040,727 $ 910,592 $ 222,550 $ $ 531,297 $ 7,098,919 $ 115,824 $ 12,175,021 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS December 31, 2009 Special Revenue Debt Service Lease Economic Special Certificates Revenue Development Program Revenue of Bonds Authority Recreation Subtotal Indebtedness of 1998A Revenue: General property taxes $ $ - $ - $ 255,076 $ 122,436 Tax increments - - - Intergovernmental - - - Special assessments - - - 224 195 Charges for services 162,494 162,494 Investment earnings 3,536 3,536 4,051 5,812 Refunds - - - Miscellaneous - - 135,000 Total revenue - 166,030 166,030 259,351 263,443 Expenditures: Current: General government 549 - 549 - Public works - - - Parks, recreation and forestry 178,444 178,444 - - --� Conservation of natural resources - - - Community development Capital outlay: General govemment Public safety Public works Parks, recreation and forestry - - - - Debt service: Principal - - 228,000 270,000 Interest and fiscal charges - - 25,923 15,949 Total expenditures 549 178,444 178,993 253,923 285,949 Revenue over (under) expenditures (549) (12,414) (12,963) 5,428 (22,506) Other financing sources (uses): Transfer in 549 - 549 Transfer out - Sale of property - Issuance of debt - Total other financing sources (uses) 549 - 549 Net increase (decrease) in fund balance (12,414) (12,414) 5,428 (22,506) Fund balance (deficit) Beginning of year 225,000 108,546 333,546 117,925 502,810 Fund balance (deficit) - December 31 $ 225,000 $ 96,132 $ 321,132 $ 123,353 $ 480,304 73 amIAI r Statement 14 Page 1 of 3 Debt Service (Continued) Public Project Improvement Improvement and Refunding Improvement Improvement Refunding Improvement Utility Revenue Improvement -- Bonds Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of of1999C 2002A 2002B 2003A 2003B 2004A 2005B $ 100,252 $ - $ $ 99 11,899 114,075 7,497 107,848 6,352 19,335 18,251 133,410 - $ 18,720 $ - $ 108,645 42,328 17 85,343 67,691 120 1,652 6,097 3,195 42,448 20,389 91,440 179,531 95,000 25,000 215,000 55,000 25,000 75,000 420,000 9,035 5,323 58,044 27,232 8,490 40,617 119,215 104,035 30,323 273,044 82,232 33,490 115,617 539,215 3,813 (12,072) (139,634) (39,784) (13,101) (24,177) (359,684) 3,813 (12,072) (139,634) 81,300 81,300 41,516 (13,101) 447,400 447,400 (24,177) 87,716 355,116 262,748 938,512 54,728 86,724 311,056 513,132 $ 358,929 $ 250,676 $ 798,878 $ 96,244 $ 73,623 $ 286,879 $ 600,848 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS December 31, 2009 Debt Service (Continued) Tax Utility CIP Abatement Revenue Refunding TIF Debt Bonds Bonds Bonds Bonds Service 2006C 2006D 2006E 2007A Subtotal Revenue: General property taxes $ 103,690 $ - $ 199,389 $ $ 908,208 Tax increments - - - Intergovernmental - - 245,500 245,500 Special assessments 41 16,952 60 338,924 Charges for services - - - Investment earnings 302 - 667 55,080 Refunds - - - Miscellaneous - - 135,000 Total revenue 104,033 16,952 200,116 245,500 1,682,712 r Am. Expenditures: Malt Current: General government - - - - Public works Parks, recreation and forestry - - - - Conservation of natural resources Community development Capital outlay: General government Public safety Public works Parks, recreation and forestry - - - Debt service: Principal - 50,000 165,000 1,623,000 Interest and fiscal charges 103,851 20,554 120,034 166,658 720,925 Mtge Total expenditures 103,851 70,554 120,034 331,658 2,343,925 Revenue over (under) expenditures 182 (53,602) 80,082 (86,158) (661,213) Other financing sources (uses): Transfer in - 71,122 - 114,537 714,359 Transfer out Sale of property - - - - - Issuance of debt - - - Total other financing sources (uses) - 71,122 - 114,537 714,359 Net increase (decrease) in fund balance 182 17,520 80,082 28,379 53,146 Fund balance (deficit) Beginning of year 55,851 17,316 61,626 126,659 3,404,203 Fund balance (deficit) - December 31 $ 56,033 $ 34,836 $ 141,708 $ 155,038 $ 3,457,349 75 r Vow Statement 14 Page 2 of 3 Capital Projects Capital Capital Closed Surface Birch Street Improvement Equipment Bond Street Water Hodgson Road .r Projects Revolving Fund Fund Reconstruction Sealcoating Management Improvement IMINM Pim Tema $ - $ - $ - $ - $ - $ - $ - 3,478 24,630 940 67,974 - - 42,602 3,946 29,250 16,517 11,013 5,313 394 - - 28 - 7,690 - - 176,988 24,839 - - - - - 219,590 28,785 32,756 41,147 19,643 73,287 394 2,278 22,540 165,314 280,510 9,524 338,783 5,519 755 24,818 445,824 9,524 - 338,783 6,274 194,772 (417,039) 23,232 41,147 (319,140) 67,013 394 114,196 - - 385,000 - (14,728) 35,700 336,000 485,896 - - 385,000 (14,728) - 194,772 68,857 23,232 41,147 65,860 52,285 394 1,570,390 137,196 1,098,051 620,783 322,099 190,537 14,813 $ 1,765,162 $ 206,053 $ 1,121,283 $ 661,930 $ 387,959 $ 242,822 $ 15,207 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS December 31, 2009 Revenue: General property taxes Tax increments Intergovernmental Special assessments Charges for services Investment earnings Refunds Miscellaneous Total revenue Capital Projects (Continued) Tax Increment Tax Increment Tax Increment Tax Increment Financing Financing Financing Financing Dedicated 1 -5 1 -9 1 -10 1 -11 Parks 39,123 - $ $ $ 307,418 222,370 145,220 1,293 6,978 4,269 3,799 40,416 6,700 314,396 226,639 145,220 10,499 Awl la ABNIAL Expenditures: Air Current: General government: - - - Public works Parks, recreation and forestry - - - - Conservation of natural resources Community development 35,662 191,295 172,215 4,303 Capital outlay: General government Public safety Public works Parks, recreation and forestry - - - 1,391 Debt service: Principal - - - Interest and fiscal charges - - - 24,372 Total expenditures 35,662 191,295 172,215 4,303 25,763 Revenue over (under) expenditures 4,754 123,101 54,424 140,917 (15,264) Other financing sources (uses): Transfer in - - - 55,000 Transfer out - - (114,537) - Sale of property Issuance of debt Total other financing sources (uses) - - (114,537) 55,000 Net increase (decrease) in fund balance 4,754 123,101 (60,113) 140,917 39,736 Fund balance (deficit) Beginning of year 46,230 228,809 144,780 (907,563) (668,224) Fund balance (deficit) - December 31 $ 50,984 $ 351,910 $ 84,667 $ (766,646) $ (628,488) 77 dimEr iamb riot Ism Statement 14 Page 3 of 3 Permanent Capital Projects (Continued) Fund Office Equipment CSAH 14/8 Legacy Woods Capital Foxborough Municipal Revolving Reconstruction Edge Projects Environment Total State Aid Fund Project Improvement Subtotal Fund 2009 $ - $ - $ - $ - $ $ - $ 908,208 - - - - 714,131 - 714,131 293,482 - - 185,000 478,482 - 723,982 - - - 97,022 - 435,946 - - - - - 162,494 28,612 5,692 - 15,470 175,148 3,131 236,895 - - - 7,718 - 7,718 - - - 208,527 5,700 349,227 322,094 5,692 - 200,470 1,681,028 8,831 3,538,601 - - - 11,802 - 12,351 - - - 275,353 642,195 - 642,195 - - - - 178,444 - - - - 15,231 15,231 - - 403,475 - 403,475 12,832 - - 12,832 - 12,832 - - 165,314 - 165,314 - - 281,265 - 281,265 - - 1,391 - 1,391 - - - - 1,623,000 - - - 24,372 - 745,297 12,832 - 275,353 1,542,646 15,231 4,080,795 322,094 (7,140) - (74,883) 138,382 (6,400) (542,194) 25,000 119,881 - 699,077 - 1,413,985 (45,153) - - - (174,418) - (174,418) - - 35,700 - 35,700 336,000 - 336,000 (45,153) 25,000 119,881 896,359 - 1,611,267 276,941 17,860 119,881 (74,883) 1,034,741 (6,400) 1,069,073 633,651 204,690 (119,881) 595,320 4,111,681 122,224 7,971,654 $ 910,592 $ 222,550 $ - $ 520,437 $ 5,146,422 $ 115,824 $ 9,040,727 CITY OF LINO LAKES, MINNESOTA SPECIAL REVENUE FUND - PROGRAM RECREATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL December 31, 2009 Statement 15 Revenue: Charges for services: Recreation Fees Investment earnings Total revenue 2009 Original Final Budget Budget Actual $ 161,050 $ 161,050 $ 162,494 3,536 161,050 161,050 166,030 Variance with Final Budget Positive (Negative) 1,444 3,536 4,980 Expenditures: Current: Personal services 105,565 105,565 98,268 7,297 Supplies 31,020 31,020 77,548 (46,528) Other services and charges 1,450 1,450 354 1,096 Contractual services 18,050 18,050 2,274 15,776 Capital outlay 3,000 3,000 - 3,000 Total expenditures 159,085 159,085 178,444 (19,359) Net increase (decrease) in fund balance $ 1,965 $ 1,965 (12,414) $ (14,379) Fund balance - January 1 108,546 Fund balance - December 31 $ 96,132 79 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 December 31, 2009 Balance Balance January 1, December 31, 2009 Additions Deductions 2009 Assets Cash and investments $ 833,884 $ - $ 60,039 $ 773,845 Deposits receivable 10,520 - - 10,520 Total assets $ 844,404 $ - $ 60,039 $ 784,365 Liabilities Accounts payable $ 4,262 $ $ 562 $ 3,700 Deposits payable 825,142 - 44,477 780,665 Total Liabilities $ 829,404 $ $ 45,039 $ 784,365 80 SUPPLEMENTARY FINANCIAL INFORMATION CITY OF LINO LAKES, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS December 31, 2009 Exhibit 1 General Obligation Bonds: 2006A Equipment Certificates 2007A Equipment Certificates 2008A Equipment Certificates 2009A 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. 0. Improvement Bonds of 2002A G. 0. Improvement Bonds of 2002B G. 0. Improvement Refunding Bonds of 2003A G. 0. Improvement Bonds of 2003B G. 0. Improvement and Utility Bonds of 2004A G. 0. Improvement Bonds of 2005A G. 0. Improvement Refunding Bonds of 2005B Total General Improvement Bonds with special assessments pledged Interest Rates Dated Final Maturity Date 4.00% 2/1/06 12/31 /09 4.00% 2/1/07 12/31 /2010 4.00% 2/1/08 12/31 /2011 3.00% 4/1/2009 12/31 /2012 4.20 % -5.35% 8/1/98 2/1/19 4.75 % -5.I0% 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 Revenue Bonds: G. 0. Water Revenue Bonds of 1996B 4.10 % -5.70% 10/1/96 2/1/12 G. 0. Water Utility Revenue Refunding Bonds of2006F 3.55 % - 3.625% 11/1/06 2/1/12 Total Revenue Bonds Other Long -Term Debt: Note Payable - Anoka County 4.00 % -3.70% 8/01/09 8/1/24 Total City indebtedness 81 UMW WININ Exhibit 1 Prior Years Principal Interest Original Payable 2009 Payable Due Due Issue Payments 1/1/09 Issued Payments 12/31/09 In 2010 In 2010 307,000 197,000 110,000 110,000 - 160,000 50,000 110,000 - 55,000 55,000 55,000 2,475 209,000 - 209,000 - 63,000 146,000 72,000 5,840 - - 336,000 336,000 104,000 16,800 5,350,000 4,965,000 385,000 - 270,000 115,000 115,000 2,875 980,000 795,000 185,000 95,000 90,000 90,000 2,295 2,460,000 - 2,460,000 - - 2,460,000 - 103,420 570,000 50,000 520,000 - 50,000 470,000 50,000 18,123 2,990,000 - 2,990,000 - 2,990,000 80,000 118,000 4,215,000 4,215,000 - 165,000 4,050,000 175,000 159,426 17,241,000 6,057,000 11,184,000 336,000 808,000 10,712,000 741,000 429,254 645,000 510,000 135,000 2,110,000 920,000 1,190,000 2,090,000 1,375,000 715,000 250,000 75,000 175,000 1,330,000 215,000 1,115,000 5,550,000 470,000 5,080,000 3,755,000 800,000 2,955,000 15,730,000 4,365,000 11,365,000 3,320,000 1,740,000 5,060,000 3,320,000 210,000 3,530,000 25,000 110,000 25,000 3,930 215,000 975,000 225,000 46,388 55,000 660,000 55,000 24,581 25,000 150,000 25,000 7,315 75,000 1,040,000 75,000 37,899 285,000 4,795,000 300,000 234,485 420,000 2,535,000 420,000 103,062 1,100,000 10,265,000 1,125,000 457,660 1,530,000 - 360,000 1,170,000 375,000 35,471 1,530,000 - 360,000 1,170,000 375,000 35,471 4,260,000 - 4,260,000 99,575 $ 38,031,000 $ 13,952,000 $ 24,079,000 $ 4,596,000 $ 2,268,000 $ 26,407,000 $ 2,241,000 $ 1,021,960 82 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF DEFERRED TAX LEVIES December 31, 2009 Exhibit 2 Public Lease Project G. 0. Year of Equipment Equipment Equipment Equipment Revenue Refunding Improvement Levy/ Certificates Certificates Certificates Certificates Bonds Bonds Bonds Collection of 2006A of 2007A of 2008A of 2009A of 1998A 1999C of 2002A 2009/2010 $ - $ 60,349 $ 81,732 $ 126,840 $ 2010/2011 80,808 127,008 2011/2012 127,617 2012/2013 2013/2014 2014/2015 - - 2015/2016 - 2016/2017 - 2017/2018 - 2018/2019 2019/2020 - - 2020/2021 2021/2022 - - 2022/2023 - - 2023/2024 - $ $ 5,446 9,645 8,385 - $ 60,349 $ 162,540 $ 381,465 $ - $ $ 23,476 83 Exhibit 2 G.O. G. O. G. O. G. O. G. 0. Improvement G. 0. Improvement Tax CIP Improvement and Utility Improvement Refunding Abatement Refunding - Bonds Bonds Bonds Bonds Bonds Bonds of 2003B of 2004A of 2005A of 2005B 2006C 2006E $ 19,534 23,524 21,917 20,248 23,781 $ 127,439 124,793 127,187 129,268 125,772 122,133 128,853 124,548 125,388 125,898 126,123 $ 569,084 568,297 566,722 569,609 566,197 567,247 572,497 571,184 574,072 574,907 579,639 $ 546,197 $ 524,213 512,925 490,613 463,050 140,091 196,581 235,011 245,511 255,381 264,458 278,140 285,411 297,263 313,472 323,316 337,517 350,447 $ 442,470 445,410 468,720 459,060 443,940 449,820 460,110 464,100 G. O. 1'll-' Bonds 2007A Total $ 354,823 $ 2,474,005 389,473 2,489,752 432,943 2,501,427 442,813 2,357,122 493,843 2,371,964 495,103 1,898,761 500,983 1,940,583 506,023 1,951,266 268,723 1,265,446 271,243 1,285,520 278,593 1,307,671 285,313 622,830 291,403 641,850 301,855 301,855 306,127 306,127 $ 109,004 $ 1,387,402 $ 6,279,455 $ 2,536,998 $ 3,522,599 $ 3,633,630 $ 5,619,261 $23,716,179 limm 84 CITY OF LINO LAKES, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS December 31, 2009 Exhibit 3 G. O. G. 0. G. 0. Improvement Equipment Equipment Equipment Equipment Improvement Improvement Refunding Certificates Certificates Certificates Certificates Bonds Bonds Bonds 2006A 2007A 2008A 2009A of 2002A of 2002B 2003A Bonds payable $ $ 55,000 $ 146,000 $ 336,000 $ 110,000 $ 975,000 $ 660,000 Future interest payable - 2,475 8,800 27,300 9,305 109,447 141,270 Totals $ $ 57,475 $ 154,800 $ 363,300 $ 119,305 $ 1,084,447 $ 801,270 Payments to maturity: 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 $ 57,475 $ 77,840 $ 120,800 $ 28,930 $ 271,388 $ 79,611 - 76,960 120,960 27,930 269,310 82,638 - 121,540 31,830 271,395 80,537 - 30,615 272,354 78,438 - - - - 81,088 - - - 78,488 - - - - 80,788 - - 77,988 - - 79,994 - - - 81,700 $ $ 57,475 $ 154,800 $ 363,300 $ 119,305 $ 1,084,447 $ 801,270 85 laiwor OMEN Omit UMW Exhibit 3 G. O. Improvement Bonds 2003B G. O. Improvement and Utility Bonds 2004A G. O. Improvement Bonds 2005A G. O. Improvement Refunding Bonds 2005B G.O. Tax Abatement Bonds 2006C G.O. Utility Revenue Bonds 2006D G.O. CIP Refunding Bonds 2006E G.O. TIF Bonds 2007A $ 150,000 $ 1,040,000 $ 4,795,000 $ 2,535,000 $ 2,460,000 $ 470,000 $ 2,990,000 $4,050,000 21,413 241,345 1,606,435 356,657 946,572 81,819 610,400 1,220,207 $ 171,413 $ 1,281,345 $ 6,401,435 $ 2,891,657 $ 3,406,572 $ 551,819 $ 3,600,400 $5,270,207 $ 32,315 $ 35,950 34,390 32,778 35,980 112,900 $ 534,486 120,420 534,111 117,700 532,986 114,810 531,111 116,702 533,361 118,182 529,736 114,382 530,236 115,482 534,611 116,382 532,861 117,013 534,633 117,372 534,784 538,519 $ 523,063 512,219 491,375 477,875 456,625 430,500 $ 103,420 $ 68,122 $ 198,000 $ 334,426 132,820 66,122 415,300 366,626 185,520 69,022 417,800 407,026 221,320 71,722 439,300 416,026 231,020 69,292 430,000 463,426 240,043 66,832 415,600 464,326 248,381 69,254 420,800 469,526 260,858 71,453 430,100 473,926 267,464 433,500 252,126 278,327 254,326 293,233 - 261,026 302,183 - 267,126 315,103 272,504 326,880 282,016 - - 285,775 $ 171,413 $ 1,281,345 $ 6,401,435 $ 2,891,657 $ 3,406,572 $ 551,819 $ 3,600,400 $5,270,207 86 CITY OF LINO LAKES, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS (CONTINUED) December 31, 2009 Exhibit 3 Bonds payable Future interest payable Totals G.O. Water Civic Public Utility Complex Project Revenue Note Revenue Revenue Refunding Payable - Bonds Bonds Bonds Anoka of 1998A of 1999C of 2006F County Totals $ 115,000 $ 90,000 $ 1,170,000 $ 4,260,000 $ 26,407,000 5,750 2,295 64,515 1,913,245 7,369,250 $ 120,750 $ 92,295 $ 1,234,515 $ 6,173,245 $ 33,776,250 Payments to maturity: 2010 $ 120,750 $ 92,295 $ 410,472 $ 99,575 $ 3,265,868 2011 - - 411,702 153,410 3,326,478 2012 - 412,341 153,410 3,326,872 2013 - - - 153,410 2,839,759 2014 - - 153,410 2,570,904 2015 - - 516,410 2,860,117 2016 - - 522,010 2,455,377 2017 - 527,010 2,491,428 2018 - - 531,410 2,213,737 2019 - - 539,260 1,805,259 2020 - - 541,136 1,747,551 2021 - - 546,946 1,654,774 2022 - - 556,816 1,144,423 2023 - - 575,716 1,184,612 2024 - - - 603,316 889,091 $ 120,750 $ 92,295 $ 1,234,515 $ 6,173,245 $ 33,776,250 87 lamp CITY OF LINO LAKES, MINNESOTA INSURANCE IN FORCE December 31, 2009 Exhibit 4 Coverage Amount General Liability: Immo 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) Now Property: Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers) 27,013,072 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 Comprehensive and Collision Uninsured motorists 1,500,000 Actual Cash Value 200,000 Workmen's compensation Statutory Umbrella Liability 1,000,000 Crime - Theft Disappearance and Destruction ($500 Deductible) 250,000 88 CITY OF LINO LAKES, MINNESOTA Exhibit 5 TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Tax Capacity Tax Capacity Values Values 2008/2009 2007/2008 Taxable valuations: Total $ 23,196,932 $ 22,092,854 Fiscal disparities: Distribution 2,779,103 2,475,798 Contribution (1,461,587) (1,282,009) Less: Captured Tax Increment Value (664,119) (532,660) Taxes Levied: Revenue Bond and Interest Totals $ 23,850,329 $ 22,753,983 Tax Tax Certified Capacity Certified Capacity Levy Rate Levy Rate $ 8,295,172 34.716 $ 7,973,236 34.560 949,166 4.017 893,720 4.407 $ 9,244,338 38.733 $ 8,866,956 38.967 The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution 89 III. STATISTICAL SECTION Immo 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. Imam CITY OF LINO LAKES, MINNESOTA NET ASSETS BY COMPONENT, LAST SEVEN FISCAL YEARS (accrual basis of accounting) Table 1 Fiscal \'ear 2003 2004 2005 2006 2007 2008 2009 Governmental activities Invested in capital assets, net of related debt S 25.993,905 S 28,807,262 S 25.460,528 S 29.549.174 S 36.789.153 S 28.472,865 S 23,400,453 Restricted 3,568,555 3,045,052 12,050,484 10,704,508 10,324,467 9,870,676 9,414,474 Unrestricted 15,668.226 16,249.541 13.577,071 14,516,466 6,339,528 10,790,359 15,926,322 Total governmental activities net assets S 45,230,686 S 48,101,855 S 51,088,083 S 54,770,148 S 53,453,148 S 49,133,900 S 48,741,249 Business -type activities Invested in capital assets, net of related debt Unrestricted S 25,537.383 S 26.713,498 S 28,342,832 S 29,485,942 S 29,836,775 S 30,372,670 S 30,071,840 3.778.936 4,744,875 5.572.338 6,880,547 8,063.983 9,028,778 10,112,207 Total business-type activities net assets S 29,316,319 S 31,458,373 S 33,915,170 S 36,366.489 S 37,900,758 S 39,401,448 S 40,184,047 Primary Government Invested in capital assets, net of related debt S 51,531288 S 55.520,760 S 53.803,360 S 59.035.116 S 66.625,928 5 58,845,535 S 53,472,293 Restricted 3,568.555 3.045,052 12.050.484 10,704.508 10.324,467 9,870,676 9,414,474 Unrestricted 19,447,162 20.994,416 19,149,409 21,397,013 14,403,511 19,819,137 26,038,529 Total primary government net assets S 74,547.005 S 79,560.228 S 85,003253 S 91.136.637 S 91,353,906 S 88,535,348 S 88,925,296 Note: The City began to report accrual information when it implemented GASB 34 in fiscal year 2003. 90 CFIYOFIIN LAKES NINNESOIA CHANGES INNETAS TS, LAST SEVFNF1S ALYEARS ((mud Cans rfcrawlicg) Table 2 Fiscal Year 2003 2004 2005 2016 2007 2008 G e metal activities: Gruen) 5 6,092,587 $ 2524,387 5 2941,279 5 2,886,825 $ 2197,672 5 2,323,358 $ 2,201,439 Public Safety 2648,944 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 Pais, Reaeation and Fx , vlhy 932113 1,196,096 799,335 1,162458 1,357,133 919,948 1,313,560 Conservation oflslrtiral&awe_s 111,946 116,869 150,042 156,592 183,420 184,624 215,607 arnimty Developeft 859,110 420,874 383,211 691,880 1,122,802 1,114,158 1,005,997 Idaeston lag- tamdebt 815,681 748,832 797,341 926,021 980,849 1,045,781 928,668 5 12,622,793 $ 15,061,060 5 17,349,868 $ 13,212120 $ 20,152,990 $ 17,247,657 $ 13,992,190 Total gpverrnental activities e pmscs ) -t7pe activities: Water Sevier Total hisirn,s-type activities Total pmary g ve rre t expenses $ 968,458 $ 914,039 $ 876,592 $ 976,575 $ 1,170,902 $ 1,020,770 $ 1,089,569 1,046,170 1,130,994 1,217,825 1,228,123 1,298,963 1,287,943 1,432,107 2014,628 2045,033 2,099,417 2,204,698 2,469,865 2,308,713 2,521,676 $ 14,637,421 $ 17,106,093 $ 19,444,285 $ 15,416,818 $ 22,622,805 $ 19,556,370 $ 16,513,866 Pgrarn Rewrites Gwamaial activities: Cmges fir:mices: Coal Gaarrni t 5 102520 $ 122,861 $ 111,480 S :•:,924 S 91,646 S 79,844 5 101,741 Public Safety 964,034 1,049,858 998,210 844,514 1,078,995 1296,418 725,747 Public Weds 493 ,312 454,191 434,087 420,741 389,489 413,040 428,174 Parks, Rcv©tion and Fae;try 250,816 242,857 196,951 1 :,439 185,803 187,285 165,994 Ga se vatimofNitural Rasmus 5,369 11,763 4,873 6,854 4,559 3,660 3,858 Commity Developret 28,210 28,952 26,985 20,530 15,839 11,623 8,667 Creating gcarts and artnbdiars 633,691 677,079 761, 924 643,749 851,791 693,065 682,797 Capital grays and caldhiias 4,536,567 7,515238 10,128,024 5,963,209 7,189,346 1,099,789 1,357,015 Total gmernmatal activiti es p grammarxs 5 7,014,519 5 10,102,799 $ 12662534 $ 8,176,955 5 9,807,468 5 3,779,724 $ 3,473,993 Business -type activities: C irgas feu services: Water S 1,064,326 5 979,075 S 1,031,175 5 1,175,172 $ 1,215,763 $ 1,058,493 $ 1,365,817 Sewn 1,216,589 1,280,652 1,361,759 1,391,702 1,446,112 1,472,093 1,502,164 ( anti ggratis and mrirrbuticrs - - 62710 Ca ital grass and cnrtnbudas 2,719,081 1,589,419 1,733,775 1,535,631 80,750 10,117 8,769 TotalUsiress -type activitiespograrrmeverm 4,999,996 3,849,146 4,126,709 4,102,505 2,742,625 2540,703 2939,460 T1a1pumry99wmn1progranmewus 5 12014,515 $ 13,951,945 $ 16,789,243 $ 12,279,460 $ 12550,093 5 0320,427 5 6,413,453 Net (E8perseY1Reven e Ginenirental activities $ (5,608,274) $ (4,958,261) $ (4,687,334) $ (5,035,165) $ (10,345,472) $ (13,467,933) $ (10,518,197) Busrttssiypeactivities 2985,368 1,804,113 2,032,292 1,897,807 272,760 231,990 417,784 Taal pima y granrvi mt experisc S (2,622,906) S (3,154,148) S (2,655,042) S (3,137,358) S (10,072,712) S (13,235,943) S (10,100,413) 91 CITY OF LINOLARES, MINNESOTA CHANCES INNETASSEIS, LAST SEVINF79CAL YEARS (Conirm d) (crowed basis o) ace zxorti 4 Table 2 (Cmtincdi Fiscal Year 2003 2004 2005 21106 2007 2008 21109 General Reverues and Other Oranges in Net Assets Gmvrnatal activities: Paucity taxes $ 6,847,470 S 6,630,279 $ 7,383,415 S 8,269,944 $ 8,785,280 $ 9,424,697 $ 9,808 ,324 Ur rictedgatsaodcoihl ors - - - - 256,877 129,607 11,321 threstneted invesinatemrmg;, 194,220 221,302 433,387 713,794 864,578 576,071 429,325 Gin en sale of capital asses 1,280,957 33,217 17,424 12,512 12,644 Miscellaneous - 160,955 - Transfers (301355) (303,108) (304,195) (299,725) (895,687) (994,202) (136,068) Tdalgne<mritalactivities $ 6,740 ,335 S 7,829,430 S 7,673,562 S 8,717,230 S 9,028,472 $ 9,148,685 $ 10,125,546 Rims-type activities: rllrestrictedimestrnteamrgs 5 20,866 $ 34,833 $ 120,310 $ 253,787 $ 365,822 $ 274,498 S 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 pirrmyp. rrrnt. $ 7,062,556 $ 8,167,371 $ 8,098,067 $ 9,270,742 $ 10,289,981 $ 10,417,385 $ 10,490,361 Charge in Net Assets Cirvmmurialactivitics $ 1,132,061 $ 2,871,169 $ 2,986,228 $ 3,682,065 $ (1,317,000) $ (4,319,248) $ (392,651) Bisirm- typexvvties 3, 307,589 2,142,054 2,456,797 2,451,319 1,534,269 1,500,690 782,599 Teal pin ey gnu-remit clvgc in net aces S 4,439,650 $ 5,013,223 $ 5,443,025 S 6,133,384 $ 217,269 $ (2,818,558) $ 389,948 Vamp Note: The Otybegan to report aannl irdrmrticn wkn it inplenated GASB 34 in fiscal year 2003. glow Mime 92 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 Table 3 Fiscal Year 2000 2001 2002 2003 $ 105,052 $ 105,969 $ 120,727 3,436,544 3,818,700 4,232,291 $ 3,541,596 $ 3,924,669 $ 4,353,018 All Other Governmental Funds Reserved reported in: Special Revenue Funds $ 1,017 $ 1,551 Capital. Projects Funds 1,572,422 1,843,423 Debt Service Funds 4,101,453 1,768,402 Permanent Funds Unreserved reported in: Special Revenue Funds 49,232 Capital Projects Funds 4,990,610 Debt Service Funds (28,568) Permanent Funds Total all other governmental funds Total all funds 41,195 6,242,862 (41,953) $ 2,430 1,946,617 1,818,859 25,200 6,317,650 (612,943) $ 133,921 4,775,969 $ 4,909,890 $ 1,759 1,946,618 2,482,184 32,704 5,406,014 675,409 $ 10,686,166 $ 9,855,480 $ 9,497,813 $ 10,544,688 $ 14,227,762 $13,780,149 $ 13,850,831 93 $ 15,454,578 Table 3 (Continued) Fiscal Year 2004 2005 $ 142,492 $ 148,652 5,067,973 5,300,156 . $ 5,210,465 $ 5,448,808 $ 1,718 957,112 2,556,300 57,616 6,241,408 452,972 $ 10,267,126 $ 1,763 957,112 7,371,359 100,000 74,716 7,348,375 853 $ 15,854,178 2006 $ 153,009 5,337,225 $ 5,490,234 $ 1,813 957,112 3,992,952 100,000 82,385 5,525,508 5,378 $ 10,665,148 $ 15,477,591 $ 21,302,986 $ 16,155,382 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 $ 19,189,984 2008 $ 190,825 5,393,316 $ 5,584,141 $ 226,973 812,400 3,405,272 100,000 106,573 5,927,411 22,224 $ 10,600,853 $ 16,184,994 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 CITY OF LINO LAKES, MINNESOTA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) Fiscal Year Table 4 2000 2001 2002 2003 2004 Revenues Property Taxes $5,213,896 $ 5,856,349 $ 6,243,200 $6,687,516 $ 6,523,938 Licenses and Permits 884,746 1,016,456 913,498 766,524 867,909 Intergovernmental 802,456 2,101,953 858,816 2,011,285 2,419,531 Special Assessments 3,106,359 1,783,237 2,050,015 2,812,386 1,587,510 Charges for Services 618,295 684,264 611,414 658,370 639,565 Fines and Forfeits 124,458 101,559 100,393 97,223 106,053 Investment Earnings 930,177 571,248 447,182 194,049 221,303 Miscellaneous 685,621 699,020 710,513 677,823 782,179 Total revenues 12,366,008 12,814,086 11,935,031 13,905,176 13,147,988 Expenditures Current: General Government 3,145,791 2,652,762 2,893,683 5,808,015 2,261,908 Public Safety 2,126,696 2,212,932 2,463,004 2,609,171 2,798,013 Public Works 838,789 1,134,874 1,245,451 1,770,649 5,126,578 Parks, Recreation and Forestry 828,852 914,432 952,039 969,597 954,945 Conservation of Natural Resources 106,543 139,599 111,880 114,580 115,631 Community Development - - - - - Capital outlay 617,345 992,339 1,057,099 622,218 515,287 Debt Service Principal 1,448,570 2,097,050 2,851,332 1,684,450 1,960,000 Interest and fiscal charges 1,041,882 960,281 1,030,395 865,638 798,405 Construction/Acquisition 725,663 501,810 1,833,592 229,321 - Total expenditures 10,880,131 11,606,079 14,438,475 14,673,639 14,530,767 Excess (deficiency) of revenues over expenditures 1,485,877 1,208,007 (2,503,444) (768,463) (1,382,779) Other Financing Sources (Uses) Sale of Property 1,280,957 Proceeds from Issuance of Debt 325,450 332,030 2,878,201 2,673,565 1,604,000 Premium on Bonds Issued - Discount on Bonds Issued (6,057) Payment to Refunded Bond Escrow Agent - (1,680,000) - - (1,170,000) Transfer In 526,843 412,239 851,472 1,120,223 5,283,306 Transfer Out (847,352) (719,889) (1,155,547) (1,421,578) (5,586,414) Total other financing sources (uses) 4,941 (1,655,620) 2,574,126 2,372,210 1,405,792 Net change in fund balances $1,490,818 $ (447,613) $ 70,682 $1,603,747 $ 23,013 Debt service as a percentage of noncapital expenditures 26.1% 30.2% 33.6% 18.4% 19.7% 95 Table 4 (Continued) Fiscal Year 2005 2006 2007 2008 2009 $ 7,230,287 $ 8,103,263 $ 8,529,846 $ 9,095,085 $ 9,561,570 812,172 581,582 694,435 802,135 307,714 1,808,111 1,818,519 6,143,689 1,004,476 1,259,016 1,769,821 2,901,100 1,961,253 950,188 968,995 601,548 687,551 753,698 872,534 778,163 100,980 101,518 139,932 133,531 111,807 - 433,385 713,795 864,578 576,071 429,325 948,009 716,692 889,901 516,415 513,306 13,704,313 15,624,020 19,977,332 13,950,435 13,929,896 2,701,731 2,614,303 1,953,960 2,058,267 1,918,246 3,099,032 3,314,159 3,513,460 3,806,389 4,122,352 7,071,322 7,755,727 8,446,911 5,542,308 1,965,640 1,111,301 1,076,727 1,103,021 1,033,260 1,106,006 - 140,334 143,653 183,346 183,024 209,466 - 683,036 1,107,328 1,113,232 1,005,095 464,553 835,770 2,008,073 585,875 501,806 2,016,000 2,155,000 1,973,000 1,749,000 1,908,000 838,950 1,011,157 937,895 1,074,052 994,809 17,443,223 19,589,532 21,226,994 17,145,407 13,731,420 (3,738,910) (3,965,512) (1,249,662) (3,194,972) 198,476 280,269 28,818 54,037 13,750 35,700 9,412,000 6,327,000 4,375,000 209,000 4,596,000 176,231 450 - 11,141 - (13,635) (25,798) - - _ - (7,225,000) - 2,651,469 5,811,452 2,900,249 4,763,391 1,413,985 (2,955,664) (6,111,177) (3,019,224) (4,796,159) (1,367,863) 9,564,305 (1,182,092) 4,284,264 189,982 4,688,963 $ 5,825,395 $ (5,147,604) $ 3,034,602 $ (3,004,990) $ 4,887,439 16.8% 25.0% 15.1% 17.4% 22.2% CITY OF LINO LAKES, MINNESOTA ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY, LAST TEN FISCAL YEARS Payable Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Residential Property $ 9,428,655 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 Commercial/ Industrial Property $ 1,574,470 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 Source: Anoka County, Minnesota Assessors' Office Personal Property $ 395,637 393,728 246,594 251,016 259,194 274,956 271,665 288,290 279,102 275,496 97 Total Taxable Assessed Value Table 5 Total Direct Tax Rate $ 11,398,762 $ 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 35.96 35.90 53.08 47.60 42.29 42.22 41.40 38.99 38.97 38.73 WINO QTY OFIINOLAKES, MINNESOTA Direct and Overlapping Property Tax Rates last Ten Fiscal Years (rate per $100 of Tar Ggxrcity) City Duct 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 2000 $ 28.407 $ 7.554 $ 35.961 $ 58.230 $ 30.861 $ 7.635 $ 96.726 $ 132.687 2001 28.903 6.995 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 42.273 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 Source: Anoka County ty 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 regtrireiients. 98 CITY OF LINO LAKES, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS, CURRENT YEAR AND NINE YEARS AGO Taxpayer 2009 2000 Table 7 Percentage Percentage of Total of Total City City Taxable Taxable Taxable Taxable Net Tax Net Tax Net Tax Net Tax 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 0.66 101,849 4 0.89 ECC Lino Lakes LLC 147,060 5 0.64 - Xcel Energy 141,737 6 0.62 213,973 1 1.88 Kohl's Department Store 140,438 7 0.61 - Taylor Corporation 132,706 8 0.58 157,535 2 1.38 '" Royal Oaks Realty Inc. 115,350 9 0.50 - F&G Incorporated 108,700 10 0.48 92,126 5 0.81 Gargaro Properties LLC - 117,167 3 1.03 Northern Development LLC - 62,454 6 0.55 Anoka Electric Cooperative - - 59,360 7 0.52 Minnegasco,Inc. - 58,772 8 0.51 Lino Lakes Business Center - - 55,143 9 0.48 DJT Properties LLC - 50,921 10 0.45 Total $1,597,618 6.98 % $ 969,300 8.50 % Source: Anoka County CITY OF LINO LAKES, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS. LAST TEN FISCAL YEARS Taxes Levied for the Fiscal Year Fiscal Operating Debt Total Tax Year Tax Levy Tax Levy Levy Table 8 Collected within the Fiscal Year of Levy Amount Percentage of Levy 2000 $ 3,611,498 $ 960,390 $ 4,571,888 $ 4,534,998 99.2% 2001 4,105,048 993,561 5,098,609 5,047,912 99.0% 2002 4,885,509 1,016,649 5,902,158 5,847,692 99.1% 2003 5,180,932 943,689 6,124,621 6,062,273 99.0% 2004 5,623,542 927,078 6,550,620 6,145,419 93.8% 2005 6,342,211 927,091 7,269,302 6,881,838 94.7% 2006 7,042,626 934,281 7,976,907 7,594,019 95.2% 2007 7,558,995 897,333 8,456,328 8,324,180 98.4% 2008 7,973,236 893,720 8,866,956 8,581,974 96.8% 2009 8,295,172 949,166 9,244,338 8,982,756 97.2% Notes: Current year levies and collections include State levy related credits (HACA and Market Value Credit). Does not include tax increment levies and collections. 100 _.. • Table 8 (Continued) Total Collections to Date Collections in Percentage Outstanding Percentage Subsequent of Delinquent of Levy Years Amount Levy Taxes Outstanding $ 42,227 $ 4,577,225 100.0% $ (5,337) -0.1% .... 50,397 5,098,309 100.0% 300 0.0% 56,678 5,904,370 100.0% (2,212) 0.0% 85,949 6,148,222 100.0% (23,601) -0.4% — 44,767 6,190,186 94.5% 360,434 5.5% 46,755 6,928,593 95.3% 340,709 4.7% 40,437 7,634,456 95.7% 342,451 4.3% 90,365 8,414,545 99.5% 41,783 0.5% 84,771 8,666,745 97.7% 200,211 2.3% - 8,982,756 97.2% 261,582 2.8% CITY OF LINO LAKES, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Fiscal Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Governmental Activities General Obligation Bonds $ 6,911,450 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 Special Assessments Payable $ 13,165,000 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 Other Long -Term Debt Table 9 Business -Type Activities General Obligation Revenue Bonds $ 1,209,352 $ 959,352 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. 102 4,340,000 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 Table 9 (Continued) Total Percentage Percentage Primary of Assessed of Personal Government Market Value Income $ 25,625,802 21,305,782 21,104,450 21,840,000 20,049,000 27,165,000 25,527,000 25,944,000 24,079,000 26,407,000 0.89 0.74 0.60 0.48 0.40 0.35 0.41 0.60 0.55 0.50 103 4.96 3.94 3.69 3.64 3.13 3.95 3.63 3.48 3.11 N/A INNOIN CITY OF LINO LAKES, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of December 31, 2009 Overlapping: Anoka County ISD 12 ISD 624 ISD 831 Metropolitan Council Anoka County Railroad Authority Total Overlapping City of Lino Lakes Direct Debt Total Direct and Overlapping Debt: Table 10 Estimated Estimated Share of Debt Percentage Overlapping Outstanding Applicable Debt $ 183,641,649 6.5% $ 12,024,052 99,350,000 47.4% 47,118,665 110,595,000 3.5% 3,875,483 38,145,000 7.8% 2,970,864 229,420,000 0.6% 1,477,128 30,990,000 6.5% 2,029,090 69,495,282 $ 3,732,000 100% 3,732,000 $ 73,227,282 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. 104 CITY OF LINO LAKES, MINNESOTA Legal Debt Margin Information Last Ten Fiscal Years Table 11 Fiscal Year 2000 2001 2002 2003 Debt limit $15,507,964 $ 18,073,714 $ 20,688,642 $ 25,024,436 Total net debt applicable to limit 5,976,450 5,836,430 5,479,450 5,350,000 Legal debt margin $ 9,531,514 $ 12,237,284 $ 15,209,192 $ 19,674,436 Total net debt applicable to the limit as a percentage of debt limit 38.54% 32.29% 26.49% 21.38% 105 Table 11 Legal Debt Margin Calculation for Fiscal Year 2009 Market value $2,134,558,200 Debt limit (3% of market value) 64,036,746 Debt applicable to limit 3,642,000 Legal debt margin $ 60,394,746 Fiscal Year 2004 2005 2006 2007 2008 2009 $ 28,616,070 $ 30,698,674 $ 34,686,356 $ 38,556,150 $ 60,658,830 64,036,746.00 5,169,000 4,845,000 4,332,000 4,039,000 3,804,000 3,642,000 $ 23,447,070 $ 25,853,674 $ 30,354,356 $ 34,517,150 $ 56,854,830 $ 60,394,746 18.06% 15.78% 12.49% 10.48% 6.27% 5.69% 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 2000 16,791 $ 516,659 $ 30,770 6,845 2.6% 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 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 107 CITY OF LINO LAKES, MINNESOTA PRINCIPAL EMPLOYERS, CURRENT YEAR AND NINE YEARS AGO Employer (2) 2009 Table 13 2000 (1) (1) Percentage Percentage of Total of Total Employees Rank Employment Employees Rank Employment State of Minnesota Corrections 500 1 N/A % 450 1 1 N/A % — Target Corporation 271 2 N/A N/A AdGraphics 190 3 N/A 270 2 2 N/A Molin Concrete Products 179 4 N/A 100 4 6 N/A Synovis Interventional Systems 160 5 N/A - N/A Anoka County Juvenile Center 149 6 N/A 175 3 3 N/A Rehbein Transit, Inc. 120 7 N/A 120 5 N/A City of Lino Lakes 74 8 N/A 65 8 N/A Custom Manufacturing 60 9 N/A 57 8 10 N/A — Nol -Tech Systems, Inc. 56 10 - 55 5 11 N/A Jer -Neen Manufacturing - - 160 4 N/A Custom Remodelers - - 70 7 N/A Northern Wholesale - - 60 6 9 N/A Total 1,759 % 1,582 - 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. (2) = Employer information for 2008 is only available for the nine largest employers within the City of Lino Lakes. 108 CITY OF LINO LAKES, MINNESOTA Full- time - Equivalent Employees by Type Last Ten Fiscal Years General Government Administration Seniors Finance Economic Development Planning Community Development Engineering Building Other Total General Government Public Safety Officers Civilians Building Inspection Total Public Safety Public Works Streets Other Total Public Works Parks, Recreation and Forestry Water Sewer Total Source: City Finance Office Table 14 2000 2001 2002 2003 2004 5.00 0.63 2.75 3.00 2.00 1.00 0.55 5.00 0.63 3.50 1.75 2.00 2.00 5.00 0.63 3.50 1.75 2.00 2.00 5.00 5.00 0.63 0.63 3.50 3.50 1.00 1.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 0.55 0.55 0.55 0.55 14.93 16.43 16.43 15.68 15.68 21.00 4.00 3.00 28.00 21.00 22.00 22.00 22.00 4.00 4.00 4.00 4.00 3.00 4.00 4.00 4.00 28.00 30.00 30.00 30.00 5.35 5.85 5.85 5.85 5.85 1.15 1.15 1.15 1.15 1.15 6.50 7.00 7.00 7.00 7.00 9.15 1.80 1.80 62.18 9.15 9.15 2.15 2.15 2.15 2.15 64.88 66.88 9.15 9.15 2.15 2.15 2.15 2.15 66.13 66.13 109 roomy NNW T WINO Table 14 (Continued) 2005 2006 2007 2008 2009 5.00 0.63 3.50 1.00 2.00 2.75 5.00 0.63 3.50 1.00 2.00 2.75 5.00 0.63 3.50 1.00 2.00 2.75 5.00 5.00 0.63 0.63 3.50 3.50 1.00 1.00 2.00 2.00 2.75 2.75 1.00 1.00 1.00 1.00 1.00 1.15 1.15 1.40 1.40 1.40 17.03 17.03 17.28 17.28 17.28 25.00 4.75 4.25 26.00 4.75 4.25 26.00 4.75 4.25 27.00 27.00 4.75 4.75 4.25 4.25 34.00 35.00 35.00 36.00 36.00 6.35 6.85 7.35 7.35 7.35 1.15 1.15 1.15 1.15 1.15 7.50 8.00 8.50 8.50 8.50 9.05 9.55 9.80 9.80 9.80 2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15 71.88 73.88 74.88 75.88 75.88 110 CITY OF LINO LAKES, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Years Function/Program Table 15 Fiscal Year 2000 2001 2002 2003 General Government Elections 2 1 2 I Registered voters 10,125 9,349 9,423 9,911 Number of votes cast 8,073 3,089 8,291 4,650 Voter participation (registered) 79.7% 33.0% 88.0% 46.9% Public Safety Police Calls for Service 6,218 6,569 7,318 7,668 Traffic Citations & Warnings 2,548 2,333 2,611 2,564 Part I Crimes 307 343 404 370 Part II Crimes 946 1,120 1,259 1,004 Inspections Building Permits (1) 1,186 1,042 860 826 Inspections N/A N/A N/A N/A Value of Building Permits $57,080,794 $74,974,042 $53,977,610 $55,864,076 Public Works General Maintenance (hours) N/A N/A N/A 2,656 Street Maintenance (hours) N/A N/A N/A 4,082 Fleet Maintenance (hours) N/A N/A N/A 3,780 Snow Plowing/Sanding (hours) N/A N/A N/A 1,020 Culture and Recreation Parks Park Maintenance (hours) N/A N/A N/A N/A Utilities Water Maintenance (hours) N/A N/A N/A N/A Sanitary Sewer Maintenance (hours) N/A N/A N/A N/A Source: Various City Depal ments 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. 111 Immoo Table 15 (Continued) Fiscal Year 2004 2005 2 1 11,718 11,035 10,147 5,288 86.6% 47.9% 2006 2007 2008 2009 2 1 2 1 11,618 10,908 12,723 11,805 8,284 2,337 11,051 4,354 71.3% 21.4% 86.9% 36.9% 7,538 7,766 7,418 7,208 7,318 6644 3,258 3,631 5,958 3,796 3,304 3180 316 257 292 250 305 215 644 591 649 671 1,191 630 835 837 686 2,297 5,041 1,535 N/A N/A N/A N/A N/A N/A $61,579,910 $53,686,592 $42,078,007 $30,539,559 $15,852,780 $ 9,586,160 3,263 6,014 5,692 6,758 6,129 5,870 3,533 3,106 3,631 2,916 3,851 3,267 3,804 4,440 4,460 4,144 5,043 4,782 855 1,003 867 1,425 1,353 950 10,210 10,577 4,349 3,904 3,347 4,092 IMMIM 10,368 10,939 4,387 4,256 3,347 4,148 112 11,136 12,406 5,716 5,041 3,760 3,486 CITY OF LINO LAKES, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Years Fiscal Year Table 16 Function/Program 2000 2001 2002 2003 2004 Public Safety Police Stations 1 1 1 1 Patrol Units 9 9 9 9 Fire (Joint Powers) Stations in City 1 1 1 1 Fire Trucks 4 4 4 4 10 1 4 Public Works Lights 397 405 486 489 489 Vehicles 27 27 28 28 29 City Streets (miles) 90.3 91.9 93.2 93.8 94.3 Culture and Recreation Parks Parks 17 17 18 19 19 Park Acres 133 133 138 142 142 Trails (miles) 14 14 14 18 18 Park Shelters 3 3 4 4 5 Basketball Courts 4 4 5 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 15 16 17 17 Water Distribution System (miles) 40.0 42.5 42.5 46.2 48.2 Water Connections 2,922 3,263 3,433 3,548 3,738 Gallons Pumped (millions) 373 407 358 518 474 Number of Fire Hydrants 357 398 409 452 490 Water Tower Capacity (millions gallons) 2 2 2 2 2 Sanitary Sewer Collection System (miles) 49.8 51.3 51.3 59.2 61.4 Sewer Connections 3,104 3,343 3,636 3,763 3,960 Storm Sewer Pipe (miles) Source: Various City Departments 25.6 28.1 29.8 31.3 31.9 113 Table 16 (Continued) Fiscal Year 2005 2006 2007 2008 2009 1 1 1 1 11 12 12 12 1 4 1 5 1 1 5 5 1 12 5 559 673 673 673 673 29 29 29 29 29 95.5 96.0 96.1 96.1 96.1 18 18 18 18 18 141 141 141 141 141 19 20 29 29 29 5 7 7 7 7 6 6 6 6 6 1 1 1 1 1 4 4 4 4 4 8 8 8 8 8 18 20 20 20 20 2 2 2 2 2 17 16 16 16 16 50.8 51.1 51.5 51.5 51.5 3,957 4,090 4,112 4,247 4,340 475 565 595 590 589 523 558 558 558 558 2 2 2 2 2 63.5 63.3 64.5 64.5 64.5 4,142 4,282 4,428 4,447 4,486 33.1 34.1 34.3 34.3 34.3