HomeMy WebLinkAboutComprehensive Annual Financial Report 12/31/2008COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LINO LAKES, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2008
Prepared By: Finance Department
Alan Rolek, Director of Finance
Paula Schloer, Accountant
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
I. INTRODUCTORY SECTION
Principal City Officials 1
Organizational Chart 2
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting 8
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 Statementl0 33
Notes to Financial Statements 34
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
Schedule of Funding Progress for Postemployment Benefit Plan Statement 12 65
Notes to Required Supplementary Information 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 74
'— Special Revenue Fund — Program Recreation:
Schedule of Revenue, Expenditures and Changes in Fund
Balance — Budget and Actual Statement 15 81
MOD Statement of Changes in Assets and Liabilities — Fiduciary Funds —
Agency Funds Statement 16 82
Supplementary Financial Information
Combined Schedule of Indebtedness Exhibit 1 83
Schedule of Deferred Tax Levies Exhibit 2 85
Debt Service Payments to Maturity - All Bonds Exhibit 3 87
Insurance in Force Exhibit 4 90
Rawl
Taxable Valuations, Tax Levies and Tax Rates Exhibit 5 91
III. STATISTICAL SECTION
Net Assets by Component — Last Six Fiscal Years Table 1 92
Changes in Net Assets - Last Six Fiscal Years Table 2 93
Fund Balances, Governmental Funds - Last Ten Fiscal Years Table 3 95
Changes in Fund Balances, Governmental Funds — Last Ten Fiscal Years Table 4 97
Assessed and Actual Value of Taxable Property -
Last Ten Fiscal Years Table 5 99
WPM
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
Direct and Overlapping Property Tax Rates -
Last Ten Fiscal Years Table 6 100
Principal Property Taxpayers Table 7 101
Property Tax Levies and Collections — Last Ten Fiscal Years Table 8 102
Ratios of Outstanding Debt by Type Table 9 104
Direct and Overlapping Governmental Activities Debt Table 10 106
Legal Debt Margin Information Table 11 107
Demographic and Economic Statistics Table 12 109
Principal Employers, Current Year and Nine Years Ago Table 13 110
Full -Time Equivalent Employees by Type Table 14 111
Operating Indicators by Function/Program Table 15 113
Capital Asset Statistics by Function/Program Table 16 115
INTRODUCTORY
SECTION
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2008
Elected Officials
Mayor:
John Bergeson
Term Expires
December 31, 2009
Council Members:
Kathi Gallup December 31, 2011
Daniel Stoltz December 31, 2011
Jeff O'Donnell December 31, 2009
Jeff Reinert December 31, 2009
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
Citizens
Honorable Mayor
and
City Council
Commissions
Cable
Parks and Recreation
Economic Development
• Planning and Zoning
Fire
- Environmental
City Administrator
City Clerk
Professional Consultants
Engineering
Attorney
Fiscal
Public Services
Public Safety
Parks
Public Works
Recreation
Administration
Police
Emergency Management
Community Development
Human Resources
Administrative Services
2
Finance
Planning
Economic Development
Engineering
Environmental Services
inspections
Accounting
Management Information Systems
Utility Billing
May 26, 2009
Honorable Mayor
Members of the City Council
Citizens of the City of Lino Lakes, Minnesota
IMEN
Minnesota State law requires that cities over 2,500 population publish within six months of the close of each
fiscal year a complete set of financial statements presented in conformity with generally accepted accounting
principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed
certified public accountants and submit them to the state auditor. Pursuant to that requirement, we hereby issue
the comprehensive annual financial report of the City of Lino Lakes, Minnesota for the fiscal year ended
December 31, 2008.
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.
OEM
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, 2008, 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, 2008, 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.
MOM
GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic
financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is
designed to complement MD &A and should be read in conjunction with it. The City of Lino Lakes' MD &A can
be found immediately following the report of the independent auditors.
3
600 Town Center Parkway, Lino Lakes, Minnesota 55014-1182
Phone: 651 - 982 -2400 • Fax: 651 -982 -2499
Profile of the Government
The City of Lino Lakes, incorporated in 1955, is a growing community in the southeast 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 57 and 64,
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
commerciaUindustrial 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
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) of property in excess of 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 was completed and accepted by the City Council in October,
2005. The AUAR included the proposed Hardwood Creek development, a 360 acre master - planned mixed -use
development. If initiated, the development would include approximately 1,100 dwelling units and 600,000 square
feet of commercial /retail buildings and preserve 90 acres of green space.
Building activity and development continued to soften during 2008 reflecting the broader market trends nation-
` wide and the onset of an economic recession in December, 2007. Building permits for new homes in 2008
numbered 29, about 1/3 of 2007 and down by over 85% from 2005.
Long -term financial planning. In 2004, the City entered into an agreement with Hartford Development LL,
LLC, to develop 40 acres in the southeast quadrant of I -35W and Lake Drive. This mixed -use development was
scheduled to occur over a period of two to five years and include up to 450 dwelling units, retail commercial
business, a community green and park and trail amenities and a 60 -unit motel. With development at a virtual
standstill due to the recession and the collapse of the real estate market, the property was foreclosed by the
mortgage banks in early 2008. The banks continue to market the property to prospective developers.
Country Inn and Suites was completed and opened in November, 2006 and still operating amid the economic
distress. The YMCA, in partnership with the City, also opened its facility within the development in July, 2007,
and is doing very well with membership on the rise. The City's participation in the YMCA is $2.35 million of the
$8.2 million project, plus land and infrastructure. The City has issued G.O. Tax Abatement bonds to finance its
contribution to this project, as well as $4.0 million in conduit debt. The City has also secured a CDBG grant of
$125,000 to be used toward a teen center within the YMCA. Anoka County is planning to locate a branch library
in close proximity to the development as well, with construction scheduled to start in 2010.
_ Street, streetscape, water, sewer, and storm water improvements 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 Interstate 35W and Lake Drive were substantially completed in October, 2008. The cost of this
improvement is approximately $11.1 million is 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
Immo 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
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 and last amended it in 1998. The City has implemented the Government Accounting
Standards Board (GASB) Statement No. 40 relating to Deposit and Investment Risk Disclosures and amending
GASB Statement No. 3, which can be found in the Notes to the Financial Statements beginning on page 33.
Cash temporarily idle during the year was invested in certificates of deposit, commercial paper, and obligations
of the U.S. Treasury. The City's investment policy's primary objective is safety of principal. Therefore, all
deposits were either insured by Federal depository insurance or were collateralized as required by State Statute.
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 2008 was 3.77 %.
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 33.
Other Post Employment Benefits (OPEB). The City of Lino Lakes has adopted and initiated GASB Statement
No. 45, Accounting and Financial Reporting for Employers Postemployment Benefits Other than Pensions. The
City engaged an actuary to determine the City's liability for postemployment healthcare beneits as of January 1,
2008. A plan description and funding policy are included in the Notes to the Financial Statements beginning on
page 33.
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, 2007. This
marks the tenth consecutive year that the City has received this prestigious award. A governmental unit must
publish an easily readable and efficiently organized comprehensive annual financial report, the contents of which
conform to program requirements. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2008 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.
6
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
■
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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, 2007
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.
President
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Executive Director
II.
FINANCIAL
SECTION
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LarsonAlleri
LLP
CPAs, Consultants & Advisors
www.larsonallen.com
INDEPENDENT AUDITORS' REPORT
Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
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, 2008, 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 U.S. generally accepted auditing standards and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the 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, 2008, and the respective changes in
financial position and cash flows, where applicable, thereof and for the year then ended in conformity with U.S.
generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated May 26, 2009 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.
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 U.S. generally accepted accounting principles. 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.
IV ��� IarsonAllen LLP is a member of Nexia International, a worldwide network of independent accounting and consulting firms.
INTERNATIONAL
Honorable Mayor and
Members of the City Council
City of Lino Lakes
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The accompanying supplementary information, including the
introductory section, combining fund financial statements, supplementary financial information and statistical
section listed in the table of contents are presented for purposes of additional analysis and are not a required part
of the basic financial statements. Such information, except for the introductory and statistical sections on which
we express no opinion, has been subjected to the auditing procedures applied in our audit of the basic financial
statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements
taken as a whole.
Minneapolis, Minnesota
May 26, 2009
10
LarsonAllen LLP
LLP
Wow
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2008
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, 2008. 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 dose of the most recent fiscal year
by $88,535,348 (net assets). Of this amount $19,819,137 (unrestricted net assets) may be used to
meet the City's ongoing obligations to citizens and creditors in accordance with the City's fund
designations and fiscal policies.
• The City's total net assets decreased by $2,818,558 primarily due to the construction of the
I35W /Lake Drive interchange.
• As of the close of the current fiscal year, the City of Lino Lakes' governmental funds reported
combined ending fund balance of $16,184,994, a decrease of $3,004,990 in comparison with the prior
year, again primarily due to the construction of the I35W /Lake Drive interchange. Approximately 71%
of this total amount, or $11,449,524 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 $5,393,316, or
60% of total general fund expenditures.
• The City of Lino Lakes' total bonded debt decreased by $1,865,000 (7.2 %) during the current fiscal
period. Except for $209,000 in 2008A Equipment Certificates, no new bonded debt was issued during
the year and principal in the amount of $2,074,000 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).
11
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2008
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-eight 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,
Area and Units Charge fund, and Legacy Woods Edge Improvement fund, all of which are considered to
be major funds. Data from the other thirty-four 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, 2008
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 68 -81 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 $88,535,348 at the close of the most recent fiscal
year, an decrease of $2,818,558 from the previous year, primarily due to the construction of the
I35W /Lake Drive interchange.
By far the largest portion of the City of Lino Lakes' net assets (66 %) 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, 2008 and 2007 are as follows:
Current and Other Assets
'... Capital Assets
Total Assets
Noncurrent Liabilities Outstanding
..— Other Liabilities
Total Liabilities
Net Assets:
.., Invested in Capital Assets, Net
of Related Debt
Restricted
Unrestricted
Total Net Assets
Governmental Activities
2008 2007
$ 26,752,468 $ 30,270,371
46,886,728 49,686,700
73,639,196 79,957,071
23, 306, 988
1,198, 308
24, 821, 020
1,682,903
24,505,296 26,503,923
28,472,865
9,870,676
10, 790, 359
36, 789,153
10, 324,467
6,339,528
Business -Type Activities Total
2008 2007 2008 2007
$ 9,139,304 $ 8,193,865 $ 35,891,772 $ 38,464,236
31,900,320 31,671,820 78,787,048 81,358,520
41,039,624 39,865,685 114,678,820 119,822,756
1,564,874 1,884,869 24,871,862 26,705,889
73,302 80,058 1,271,610 1,762,961
1,638,176 1,964,927 26,143,472 28,468,850
30,372,670 29,836,775
9,028,778 8,063,983
58,845, 535
9,870,676
19,819,137
66, 625, 928
10,324,467
14,403,511
$ 49,133,900 $ 53,453,148 $ 39,401,448 $ 37,900,758 $ 88,535,348 $ 91,353,906
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 (22 %)
may be used to meet the government's ongoing obligations to citizens and creditors.
13
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2008
GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED)
At the end of the current fiscal year, the City of Lino Lakes is able to report positive balances in all three
categories of net assets, both for the government as a whole, as well as for its separate governmental and
business -type activities.
Governmental activities Governmental activities decreased the City of Lino Lakes' net assets by
$4,319,248. 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
$1,500,690. Operating income 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, 2008 and 2007:
Governmental Activities
Business -Type Activities Total
2008 2007 2008 2007 2008 2007
REVENUES
Program Revenues:
Charges for Services $ 1,991,870 $ 1,766,331 $ 2,530,586 $ 2,661,875 $ 4,522,456 $ 4,428,206
Operating Grants and Contributions 693,065 851,791 - 693,065 851,791
Capital Grants and Contributions 1,094,789 7,189,346 10,117 80,750 1,104,906 7,270,096
General Revenues:
Property Taxes 9,256,407 8,633,690 - 9,256,407 8,633,690
Franchise Taxes 167,389 150,630 - 167,389 150,630
Other Taxes 901 960 - 901 960
Contributions Not Restricted to
Specific Programs 129,607 256,877 - - 129,607 256,877
Unrestricted Investment Eamings 576,071 864,578 274,498 365,822 850,569 1,230,400
Gain on Disposal of Capital Assets 12,512 17,424 - - 12,512 17,424
Total Revenues 13,922,611 19,731,627 2,815,201 3,108,447 16,737,812 22,840,074
EXPENSES
General Government 2,323,358 2,197,672 - - 2,323,358 2,197,672
Public Safety 4,051,162 3,730,504 - - 4,051,162 3,730,504
Public Service 7,608,626 10,580,560 - - 7,608,626 10,580,560
Parks, Recreation and Forestry 919,948 1,357,133 - 919,948 1,357,133
Conservation of Natural Resources 184,624 183,420 - 184,624 183,420
Community Development 1,114,158 1,122,802 1,114,158 1,122,802
Interest on Long -Term Debt 1,045,781 980,849 - - 1,045,781 980,849
Water - 1,020,770 1,170,902 1,020,770 1,170,902
Sewer - 1,287,943 1,298,963 1,287,943 1,298,963
Total Expenses 17,247,657 20,152,940 2,308,713 2,469,865 19,556,370 22,622,805
CHANGE IN NET ASSETS
BEFORE TRANSFERS (3,325,046) (421,313) 506,488 638,582 (2,818,558) 217,269
Transfers (994,202) (895,687) 994,202 895,687 -
CHANGE IN NET ASSETS (4,319,248) (1,317,000) 1,500,690 1,534,269 (2,818,558) 217,269
Net Assets- Beginning of Year 53,453,148 54,770,148 37,900,758 36,366,489 91,353,906 91,136,637
NET ASSETS - END OF YEAR $ 49,133,900 $ 53,453,148 $ 39,401,448 $ 37,900,758 $ 88,535,348 $ 91,353,906
14
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2008
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
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
e`a\'40
et
Ge'
■ •
r�'1/4 r! ��
es
a �ceS 6kciVa $c0c
e G 0 S
c;'`" J`� aP ck e
o
ecee' r oEc.. J20 o�� .5,��rt
Pees e 12' G
OAS
G
et`k eek
deJe\0p� �` d
• Expenses
• Revenues
Revenues by Source — Governmental Activities
Unrestricted investment
-- earnings
4%
Unrestricted grants and
contributions
1%
Franchise taxes
1%
Property taxes
67%
Other
0%
Charges for services
14%
Operating grants and
contributions
5%
Capital grants and
— contributions
8%
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2008
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
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$-
Water
Sewer
o Expenses
• Revenues
Revenues by Source — Business -type Activities
Capital grants and
contributions
0%
Other
10%
16
Charges for services
90%
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2008
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 Jegal requirements.
Govemmenta! Funds The focus of the City of Lino Lakes' governmental funds is to provide information
on near-term inOows, outOovvs, and balances of spendable resources. Such information is useful in
assessing the City of Lino Lakes' financing requirements. In padicu|ar, 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 $10.184.984, a decrease of $3.004.890. or 16Y6. under the previous yeor,
primarily due to the construction of the |35W/Lake Drive interchange. Approximately 71% of this total
mmount, or $11,449,524, constitutes unreseived 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 ($192.798). 2) to pay debt service ($3,405,272), 3) to fund interfund advances ($812.400).
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 $5.393.310. while the total fund balance was
$5,584,141. As a measure of the general fund's |iquid)h/, it may be useful to compare unreserved fund
balance and total fund balance to totat fund expenditures. Unreserved fund balance represents 60% of
total general fund expenditures, while total fund balance represents 62% of that same amount.
The fund balance of the City of Lino Lakes' general fund increased by $46,110 during the current fiscal
year. A soft real estate market and the onset of an economic recession in December, 2007. reduced
building activities which decreased permit revenue. The recession also had an impact on property tax
de/inquencies, interest nsba, which made a significant impact on budgeted investment eornings, and
intergovernmental revenues expected from the state. Reduced expenditunes, primarily for personal
services and contractual sen/ices, offset the reduced navonuas, thereby contributing toward the increase
in fund balance. C)venaU, the general fund's revenues were within 4% of the amended budget, while
expenditures were 5% below budgeted tevets.
The G.O. improvement bonds 2005A fund has a total fund balance of $1,069, all of which is reserved for
the retirement of related debt. This 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 2008.
The area and unit charge fund has a total fund balance of $2,648,963 of which $812.400 is reserved for
advances to other funds, and $1.836.583 is unreserved and available for financing capital improvements.
The fund balance during the current year increased by $177.347, due in large part to the reduction in the
advances to other funds and to tower expenditures in 2008.
The Legacy Woods Edge improvement fund balance decreased by $2,649,695, to $595,320. This is
primarily due expenditures for the reconstruction of thel-35 W/Lake Drive interchange.
Proprietary funds The City of Lino Lakes proprietary funds provide the same type of information found in
the government-wide finar,ciat statements, but in more detail.
The water fund has total net assets et year end nf$17'O46.456.of which $3.183.Q53 are unrestricted. The
increase in net assets of $690,267 was primarily due to contributions from the primary govarnment, and
from operating income.
Total net assets in the sewer fund at the end of 2008 were $22.354.993. of which $5,844,825 was
unrestricted. Net assets increased $810.423 during the current year resulting primarily from operating
income, investment income and contributions from private sources
17
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2008
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS (CONTINUED)
Proprietary funds (Continued) The water and sewer rates remained the same in 2008 as in 2007. A rate
study was performed in 2007 and was accepted in June, 2008. Water rate adjustments, reflecting water
conservation efforts through a tiered rate structure, were approved in late 2008 and will go into affect
beginning in 2009. Sewer Rates will remain 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, and reallocating resources within the original budget.
Revenues were $317,778 under budget. This is due to a few major factors. The Governor used his
unallotment powers to withhold one -half of the Market Value Credit the City was to receive from the State
in 2008, amounting to over $120,000 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 and, therefore, fewer new construction building permits being issued
was also a factor. State intergovernmental revenues for police PERA aid were well over budgeted revenue
for the year due to increased 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
over budgeted amounts due to Operation Nitecap and other programs aimed at increased patrolling for
vehicular violations. Expenditures came in under the budgeted amounts by $428,600 due mainly to lower
than expected personal services costs and savings in contractual service costs. Energy costs for fuels and
electricity were higher than budgeted amounts, although at year end the costs for these areas had
decreased significantly from the high costs experienced during the summer months. There were also net
transfers from the general fund of $806,180, $65,180 over budgeted transfers. This resulted in a net fund
balance increase of $46,110 for the fiscal year.
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, 2008, is $78,787,048 (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 3.2 %. This decrease is entirely
within the governmental activities and is attributable to the depreciation of constructed streets,
underground infrastructure and vehicles. Within the business -type activities the most significant increases
occurred in infrastructure installation in relation to the water and sewer funds.
Land
Construction in Progress
Buildings
Office Equipment and Furniture
Vehicles
Machinery and Shop Equipment
Other Equipment
Infrastructure
Capital Assets, Net
Capital Assets at Year -End
(Net of Accumulated Depreciation)
Governmental Activities
2008 2007
$ 2,809,059 $ 2,809,059
2,762,525 5,738,921
4,162,757 4,376,812
443,209 491,145
1,311,603 1,157,749
215,050 246,652
351,186 391,712
34,831,339 34,474,650
$ 46,886,728 $ 49,686,700
Business -Type Activities Total
2008 2007 2008
$ $ $ 2,809,059
13,054 13,054 2,775,579
4,162,757
443,209
1,311,603
218,523 132,135 433,573
351,186
31,668,743 31,526,631 66,500,082
$ 31,900,320 $ 31,671,820 $ 78,787,048
2007
$ 2,809,059
5,751,975
4,376,812
491,145
1,157,749
378,787
391,712
66,001,281
$ 81,358,520
Additional information on the City's capital assets can be found in the notes to the financial statements on
pages 34 -57.
18
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2008
CAPITAL ASSET AND DEBT ADMINISTRATION (CONTINUED)
Long-term debt At the end of the current fiscal year, the City of Lino Lakes had total bonded debt
outstanding of $24,079,000. Of this amount $11.184.000 comprises tax supported debt, $11.385.000 is
special assessment debt and $1.530`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.
Outstanding Debt at Year-En
Govementalxctivities
Business-Type Activities Total
2008 2007 2008 2007 2008 2007
G.O. Bonds $ 11,184,000 $ 11,569,000 $ $ - $ 11.184.000 $ 11,569000
G.O. Special Assessment Bond 11,365,000 12,520000 - 11.365000 12,520000
G.O. Revenue Bonds - 1,530,000 1,855,000 1.530,00 1.855,000
Total Outstanding Debt $ 22,5*9000 $ 2*,089,000 $ 1,530,000 $ 1.855.000 $ 24.079,000 $ 25,e**000
The City of Lino Lakes total bonded debt decreased by $1,865,000 (7.2 percent) during the current fiscal
year. The key factors for the change include the issuance of $209,000 in 2008A Equipment Certificates
and retirement of principal in the amount of $2074,000 during the year.
The City of Lino Lakes received an Aa3 rating from Moody's Investors Service for general obligation debL
More detailed information on the City's long-term liabilities is presented in the notes to the financial
statements.
Additional information on the City's long-term debt can be found in the notes to the financial statements on
pages 34-57.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
• TheunemolovmemdratefovthmCdvofLinoLakesedyearendisG.S96.whichkyasi nificant increase
from a rate of 4.8% a year ago. This mirrors the state's average unemployment rate of 6.8% and the
national average of 7.1 %.
°
Residential growth in the City has slowed significantly due to the general residential real estate market
downturn and current economic neceosion, with about one-third the number of new home permits
issued in 2008 as in 2007, and less than 8596 of new home permits issued in 2005. This is expected
to decrease further and then level off in 2008. with the beginning of a recovery of the housing market
in 2010. Thia, as well as falling property values of the existing tax baae, will have a significant impact
on the City's tax base for 2010 and beyond.
• Energy costs, while dropping and leveling off in recent montho, 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 and 2006. While the City is exempted from local
government aid, only one-half of the allocated market value homestead credit was received in 2008
and none is expected to be received in 2009.
• 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.
19
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2008
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.
al
rl
MEN
NMY
•t
Ar
s
a•
20
BASIC FINANCIAL STATEMENTS
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2008
Statement 1
Governmental Business -type
Activities Activities
Total
ASSETS
Cash and investments $ 15,664,737 $ 8,574,647 $ 24,239,384
Cash and investments with escrow agent 88,504 - 88,504
Accrued interest receivable 222,728 - 222,728
Accounts receivable 142,952 375,921 518,873
Due from other governments 216,166 515 216,681
Taxes receivable 496,990 - 496,990
Special assessments receivable 9,187,913 102,223 9,290,136
Long -term notes receivable 225,000 - 225,000
Prepaid items 192,798 73,280 266,078
Unamortized bond issue costs 214,680 12,718 227,398
Permanently restricted cash and investments 100,000 - 100,000
Capital assets:
Land 2,809,059 - 2,809,059
Construction in progress 2,762,525 13,054 2,775,579
Other capital assets, net of depreciation 41,315,144 31,887,266 73,202,410
Total assets 73,639,196 41,039,624 114,678,820
LIABILITIES
Accounts payable 427,097 40,031 467,128
Salaries payable 192,086 10,404 202,490
Contracts and retainage payable 167,730 - 167,730
Accrued interest payable 411,370 22,867 434,237
Due to other governments 25 25
Non - current liabilities:
Due within one year 2,354,582 387,396 2,741,978
Due in more than one year 20,952,406 1,177,478 22,129,884
Total liabilities 24,505,296 1,638,176 26,143,472
NET ASSETS
Invested in capital assets, net of related debt 28,472,865 30,372,670 58,845,535
Restricted for:
Debt service 9,770,676 - 9,770,676
Environmental improvements - nonexpendable 100,000 - 100,000
Unrestricted 10,790,359 9,028,778 19,819,137
Total net assets $ 49,133,900 $ 39,401,448 $ 88,535,348
The accompanying notes are an integral part of these basic financial statements.
21
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF ACTIVITIES
Year Ended December 31, 2008
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
$ 2,323,358
4,051,162
7,608,626
919,948
184,624
1,114,158
1,045,781
17,247,657
1,020,770
1,287,943
2,308,713
$ 19,556,370
Program Revenues
Charges for
Services
$ 79,844
1,296,418
413,040
187,285
3,660
11,623
Operating
Grants and
Contributions Contributions
Capital Grants and
$ 19,888 $ 27,000
176,925
443,379 1,067,789
17,548
35,325
1,991,870 693,065
1,058,493
1 ,472,093
2,530,586
$ 4,522,456
■
$ 693,065
1,094,789
9,587
530
10,117
$ 1,104,906
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 an integral part of these basic financial statements.
22
Statement 2
Net (Expense) Revenue and Changes in Net Assets
Governmental Business -type
Activities Activities Total
$ (2,196,626) $ - $ (2,196,626)
(2,577,819) - (2,577,819)
(5,684,418) - (5,684,418)
(715,115) - (715,115)
(145,639) - (145,639)
(1,102,535) - (1,102,535)
(1,045,781) - (1,045,781)
(13,467,933) - (13,467,933)
(13,467,933)
47,310 47,310
184,680 184,680
231,990 231,990
231,990 (13,235,943)
9,256,407 - 9,256,407
167,389 - 167,389
901 - 901
129,607 129,607
576,071 274,498 850,569
12,512 12,512
(994,202) 994,202
9,148,685 1,268,700 10,417,3 85
(4,319,248) 1,500,690 (2,818,558)
53,453,148 37,900,758 91,353,906
$ 49,133,900 $ 39,401,448 $ 88,535,348
23
CITY OF LINO LAKES, MINNESOTA
BALANCE SHEET - GOVERNMENTAL FUNDS
December 31, 2008
G.O. Area and Legacy
Improvement Unit Woods Edge
Assets General Bonds 2005A Charge Improvement
Cash and investments $ 4,121,641 $ 1,069 $ 1,813,952 $ 765,196
Cash and investments with escrow agent
Accrued interest receivable 222,728
Accounts receivable 119,639 22,903
Due from other governmental units 214,666
Interfund receivable 1,075,240
Taxes receivable:
Delinquent 252,399
Due from county 71,169
Delinquent tax increment -
Special assessments receivable:
Delinquent - 1,722,998 96,204
Deferred 1,108 3,647,477 1,951,873
Due from county - 7,191
Long -term notes receivable -
Prepaid items 190,825
Advances to other funds - 812,400
Total assets $ 6,269,415 $ 5,371,544 $ 4,704,523 $ 765,196
Liabilities and equity
Liabilities:
Interfund payable
Accounts payable
Salaries payable
Contracts and retainage payable
Due to other governmental units
Advances from other funds
Deferred revenue
Total liabilities
Fund balances:
Reserved :
Reserved for prepaid items
Reserved for debt retirement
Reserved for advances to other funds
Reserved for environmental improvements
Reserved for long -term notes receivable
Unreserved:
Designated:
General fund
Special revenue funds
Capital projects funds
Undesignated reported in:
Capital projects funds
Permanent funds
Total fund balances
Total liabilities and fund balances
$ - $ $ $ -
240,082 7,483 2,146
191,660 - -
167,730
25 - -
253,507 5,370,475 2,048,077
685,274 5,370,475 2,055,560 169,876
190,825
1,069
812,400
5,393,316 -
1,836,563 595,320
5,584,141 1,069 2,648,963 595,320
$ 6,269,415 $ 5,371,544 $ 4,704,523 $ 765,196
The accompanying notes are an integral part of these basic financial statements.
24
Statement 3
Other Total
Governmental Governmental
Funds Funds
9,062,879 $ 15,764,737
88,504 88,504
222,728
410 142,952
1,500 216,166
1,075,240
28,291 280,690
37,499 108,668
107,632 107,632
26,889 1,846,091
1,730,985 7,331,443
3,188 10,379
225,000 225,000
1,973 192,798
812,400
$ 11,314,750 $ 28,425,428
$ 1,075,240 $ 1,075,240
177,386 427,097
426 192,086
167,730
25
8I2,400 812,400
1,893,797 9,565,856
3,959,249 12,240,434
1,973 192,798
3,404,203 3,405,272
812,400
100,000 100,000
225,000 225,000
5,393,316
106,573 106,573
4,113,978 6,545,861
(618,450) (618,450)
22,224 22,224
7,355,501 16,184,994
$ 11,314,750 $ 28,425,428
25
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET ASSETS
December 31, 2008
Statement 4
Total Fund Balances for Governmental Funds $ 16,184,994
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:
Land $ 2,809,059
Construction in Progress 2,762,525
Buildings, Net of Accumulated Depreciation 4,162,757
Office Equipment and Furniture, Net of Accumulated Depreciation 443,209
Vehicles, Net of Accumulated Depreciation 1,311,603
Machinery and Shop Equipment, Net of Accumulated Depreciation 215,050
Other Equipment, Net of Accumulated Depreciation 351,186
Infrastructure, Net of Accumulated Depreciation 34,831,339 46,886,728
Some of the City's property taxes and special assessments will be collected after year -end, but are not
available soon enough to pay for the current period's expenditures and, therefore, are reported as
deferred revenue in the governmental funds. 9,565,856
Bond issuance costs are reported as expenditures in the governmental funds and are shown net of
accumulated amortization on the statement of net assets as prepaid items. 214,680
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.
(411,370)
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:
Bonds Payable (22,549,000)
Unamortized Premiums (119,290)
Unamortized Discounts 39,427
Other Post Employment Benefits (22,481)
Compensated Absence Payable (655,644) (23,306,988)
Total Net Assets of Governmental Activities $ 49,133,900
The accompanying notes are an integral part of these basic financial statements.
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS
Year Ended December 31, 2008
G.O. Area and Legacy
Improvement Unit Woods Edge
Revenue: General Bonds 2005A Charge Improvement
General property taxes $ 7,691,576 $ - $ - $ -
Tax increments -
Licenses and permits 802,135
Intergovernmental 517,242 -
Special assessments 4,323 480,932
Charges for services 449,555 239,194
Fines and forfeits 133,531 - - -
Investment earnings 134,521 3,885 91,695 66,357
Refunds and reimbursements 8,637 - -
Miscellaneous 172,750
Total revenue 9,914,270 3,885 811,821 66,357
Expenditures:
Current:
General government 2,046,500
Public safety 3,806,389 -
Public works 1,368,630 91,563 3,668,378
Parks, recreation and forestry 847,542 -
Conservation of natural resources 178,254
Community development 745,127
Capital outlay:
General government 2,944
Public safety 41,441 -
Public works - 36,403
Parks, recreation and forestry 24,000 -
Conservation of natural resources 1,397
Community development 224
Debt service:
Principal 275,000
Interest and fiscal charges 263,092
Total expenditures 9,062,448 538,092 91,563 3,704,781
Revenue over (under) expenditures 851,822 (534,207) 720,258 (3,638,424)
Other financing sources (uses):
Transfer in 468 25,000 2,188,729
Transfer out (806,180) - (542,911) (1,200,000)
Sale of property
Issuance of debt
Total other financing sources (uses) (805,712) 25,000 (542,911) 988,729
Net increase (decrease) in fund balance 46,110 (509,207) 177,347 (2,649,695)
Fund balance -
Beginning of year 5,538,031 510,276 2,471,616 3,245,015
Fund balance - December 31 $ 5,584,141 $ 1,069 $ 2,648,963 $ 595,320
The accompanying notes are an integral part of these basic financial statements.
27
Statement 5
Other Total
Governmental Governmental
Funds Funds
$ 863,173 $ 8,554,749
540,336 540,336
802,135
487,234 1,004,476
464,933 950,188
183,785 872,534
r. 133,531
279,613 576,071
98 8,735
334,930 507,680
3,154,102 13,950,435
11,767 2,058,267
3,806,389
413,737 5,542,308
185,718 1,033,260
4,770 183,024
368,105 1,113,232
17,295 20,239
145,622 187,063
304,104 340,507
12,445 36,445
1,397
224
1,474,000 1,749,000
810,960 1,074,052
3,748,523 17,145,407
(594,421) (3,194,972)
2,549,194 4,763,391
(2,247,068) (4,796,159)
_ 13,750 13,750
209,000 209,000
524,876 189,982
(69,545) (3,004,990)
7,425,046 19,189,984
$ 7,355,501 $ 16,184,994
28
CITY OF LINO LAKES, MINNESOTA Statement 6
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES
Year Ended December 31, 2008
Net Change in Fund Balances -Total Governmental Funds $ (3,004,990)
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, assets are capitalized and the cost is allocated over their
estimated useful lives and reported as depreciation expense.
Capital outlays $ 926,845
Capital contributions to business -type funds (961,434)
Gain on disposal of capital assets 12,512
Proceeds from sales of capital assets (13,750)
Depreciation expense (2,764,145) (2,799,972)
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:
Issuance of equipment certificates (209,000)
Repayment of bond principal 1,749,000
Change in accrued interest expense for general obligation bonds 33,164
Amortization of bond issuance costs (21,146)
Amortization of bond premium 19,120
Amortization of bond discount (2,867) 1,568,271
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, 2007
Deferred revenue - December 31, 2008
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 2008,
compensated absence payable and other post employment benefits payable increased.
Change in Net Assets of Governmental Act
vines
The accompanying notes are an integral part of these basic financial statements.
29
9,606,192
9,565,856 (40,336)
(42,221)
$ (4,319,248)
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS - PROPRIETARY FUNDS
December 31, 2008
Statement 7
Assets
Current assets:
-` Cash and cash equivalents
Accounts receivable
Due from other governmental units
- Due from county - special assessments
Prepaid items
Total current assets
Non - current assets:
Special assessments, long term
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:
Accounts payable
Salaries payable
Accrued interest payable
Bonds payable - current portion
Compensated absences payable - current portion
Total current liabilities
Non - current liabilities:
Bonds payable - long term
Compensated absences payable - long term
Total noncurrent liabilities
Total liabilities
Net assets
Invested in capital assets, net of related debt
Unrestricted
Total net assets
Water
$ 2,964,709
167,447
515
8,578
9,477
3,150,726
93,265
12,718
Sewer
$ 5,609,938
208,474
380
63,803
5,882,595
13,054
48,690
122,811 313,644
19,544,873 21,227,039
19,716,374 21,553,737
(4,326,222) (5,043,569)
15,390,152 16,510,168
15,496,135 16,510,168
18, 646, 861 22,392,763
25,705
5,572
22,867
360,000
13,698
427,842
1,167,650
4,914
1,172,564
1,600,406
13,862,502
3,183,953
$ 17,046,455
The accompanying notes are an integral part of these basic financial statements.
30
14,326
4,832
13,698
32,856
4,914
4,914
37,770
Total
2008
$ 8,574,647
375,921
515
8,958
73,280
9,033,321
93,265
12,718
13,054
48,690
436,455
40,771,912
41,270,111
(9,369,791)
31,900,320
32,006,303
41,039,624
40,031
10,404
22,867
360,000
27,396
460,698
1,167,650
9,828
1,177,478
1,638,176
16,510,168 30,372,670
5,844,825 9,028,778
$ 22,354,993 $ 39,401,448
CITY OF LINO LAKES, MINNESOTA Statement 8
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - PROPRIETARY FUNDS
Year Ended December 31, 2008
Water
Total
Sewer 2008
Operating revenue:
Charges for services $ 1,035,462 $ 1,465,001 $ 2,500,463
Hook -up charges 9,020 7,060 16,080
Water meter sales 12,898 - 12,898
Other operating revenue 1,113 32 1,145
Total operating revenue 1,058,493 1,472,093 2,530,586
Operating expenses:
Personal services 185,970 167,782 353,752
Materials and supplies 166,023 13,496 179,519
Contractual services 104,604 62,431 167,035
MCES sewer charges 565,801 565,801
Depreciation 411,992 432,366 844,358
Utilities 70,388 35,059 105,447
Other 20,066 11,008 31,074
Total operating expenses 959,043 1,287,943 2,246,986
Net income from operations 99,450 184,150 283,600
Other income (expense):
Investment earnings 90,992 183,506 274,498
Special assessments 9,587 530 10,117
Bond interest (56,104) (56,104)
Paying agent fees (5,623) (5,623)
Total other income (expense) 38,852 184,036 222,888
Net income before contributions and transfers 138,302 368,186 506,488
Contributions and transfers:
Capital contributions from primary government 551,965 409,469 961,434
Transfer in 57,768 57,768
Transfer out (25,000) (25,000)
Total contributions and transfers 551,965 442,237 994,202
Change in Net Assets 690,267 810,423 1,500,690
Net Assets - January 1 16,356,188 21,544,570 37,900,758
Net Assets - December 31 $ 17,046,455 $ 22,354,993 $ 39,401,448
31
CITY OF LINO LAKES, MINNESOTA Statement 9
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
Year Ended December 31, 2008
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
WNW
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - January 1
— Cash and cash equivalents - December 31
Reconciliation of operating income to net cash
from operating activities:
Operating income
Adjustments to reconcile operating income to
net cash flows from operating activities:
Depreciation
Change in assets and liabilities:
Decrease (increase) in receivables
Decrease (increase) in prepaid items
-- Increase (decrease) in payables
Net cash flows from operating activities
Water
$ 1,054,529
(364,840)
(182,823)
506,866
(325,000)
20,676
(62,283)
(12,213)
(378,820)
90,992
219,038
2,745,671
$ 2,964,709
$ 99,450
411,992
(3,964)
(2,658)
2,046
$ 506,866
- Water lines in the amount of $551,965 were contributed to the Water Fund in 2008.
— - Sewer lines in the amount of $409,469 were contributed to the Sewer Fund in 2008.
The accompanying notes are an integral part of these basic financial statements.
32
Sewer
$ 1,463,346
(698,478)
(164,632)
600,236
32,768
32,768
Total
2008
$ 2,517,875
(1,063,318)
(347,455)
1,107,102
32,768
32,768
- (325,000)
421 21,097
- (62,283)
(99,212) (111,425)
(98,791) (477,611)
183,506
717,719
4,892,219
$ 5,609,938
$ 184,150
432,366
(8,747)
(8,417)
884
$ 600,236
274,498
936,757
7,637,890
$ 8,574,647
$ 283,600
844,358
(12,711)
(11,075)
2,930
$ 1,107,102
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS - FIDUCIARY FUNDS - AGENCY FUNDS
December 31, 2008
Statement 10
Assets
Cash and investments
Deposits receivable
2008
$ 833,884
10,520
Total assets $ 844,404
Liabilities
Accounts payable
Deposits payable
$ 4,262
840,142
Total liabilities $ 844,404
The accompanying notes are an integral part of these financial statements.
33
IRENE
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 goverment is financially accountable for a component include
whether or not the primary government appoints the voting majority of the potential component unit's
board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or
burden with the potential component unit, or is fiscally depended upon by the potential component unit.
COMPONENT UNITS
In conformity with U.S. generally accepted accounting principles, the financial statements of component
units have been included in the financial reporting entity either as blended component units or as discretely
presented component units.
Blended Component Units
The Economic Development Authority (EDA) of Lino Lakes is an entity legally separate from the City.
However, for financial reporting purposes, the EDA is reported as if it were part of the City's operations
because the members of the City Council serve as commission members. The EDA does not issue separate
financial statements. The Housing and Redevelopment Authority (HRA) of Lino Lakes is an entity legally
separate from the City. However, for financial reporting purposes, the HRA is reported as if it were part of
the City's operations because the members of the City Council serve as commission members. The HRA has
not yet incurred any financial activity.
B. 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.
34
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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
fmance 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.
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.
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.
35
— CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. BASIC FINANCIAL STATEMENTS (CONTINUED)
2. Fund Financial Statements (Continued)
The City reports the following major proprietary funds:
Water Fund
The water fund accounts for customer water service charges that are used to finance water operating
expenses.
Sewer Fund
The sewer fund accounts for customer water service charges that are used to finance water operating
expenses.
Additionally, the City reports the following fiduciary funds:
Agency Funds - to account for assets held as an agent for individuals, private organizations, other
governmental units, and/or other funds. The City's agency fund accounts for pass - through contractor's
deposits relating to prospective developments.
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
The government -wide and proprietary fund financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Agency funds, which are included in the Fiduciary
Funds, do not have a measurement focus. Revenues are recorded when earned, and expenses are recorded
when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon
as all eligibility requirements imposed by the provider have been met.
Private - sector standards of accounting and financial reporting issued on or before November 30, 1989,
generally are followed in both the government -wide and proprietary fund financial statements to the extent
that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards
Board. Governments also have the option of following subsequent private- sector guidance for their
business -type activities and enterprise funds, subject to this same limitation. The City has elected not to
follow subsequent private- sector guidance.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. The City considers all revenues to be available if they are collected within 60
days after the end of the current period. Property and other taxes, licenses, and interest are all considered to
be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for
principal and interest on general long -term debt, compensated absences, and claims and judgments, which
are recognized as expenditures to the extent that they have matured. Proceeds of general long -term debt and
acquisitions under capital leases are reported as other financing sources. When both restricted and
unrestricted resources are available for use, it is the City's policy to use restricted resources first, then
unrestricted resources as they are needed.
36
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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.
37
_, CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. LEGAL COMPLIANCE — BUDGETS (CONTINUED)
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for the
Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and
calculate user charges. These debt service and budget amounts represent general obligation bond
indenture provisions and net income for operation and capital maintenance and are not reflected in the
financial statements.
7. A capital improvement program is reviewed periodically by the City Council for the Capital Project
Funds. However, appropriations for major projects are not adopted until the actual bid award of the
improvement. The appropriations are not reflected in the financial statements.
8. Expenditures may not legally exceed budgeted appropriations at the total fund level. Monitoring of
budgets is maintained at the expenditure category level (i.e., personal services, supplies; other services
and charges; capital outlay) within each activity.
9. The City Council may authorize transfers of budgeted amounts between City funds.
F. CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in investments
authorized by Minnesota Statutes. Earnings from investments are allocated to individual funds on the basis
of the fund's equity in the cash and investment pool.
The City provides temporary advances to funds that have insufficient cash balances by means of an advance
from another fund shown as interfund receivables in the advancing fund in the governmental fund financial
statements, and an interfund payable in the fund with the deficit, until adequate resources are received.
These interfund payables are eliminated for statement of net assets presentation.
Investments are stated at fair value and interest earnings are accrued at year -end.
For purposes of the statement of cash flows the Proprietary Fund considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. All of the cash and
investments allocated to the proprietary fund types have original maturities of 90 days or less. Therefore,
the entire balance in such fund types is considered cash equivalents.
Permanently restricted cash and investments represents the principal portion of resources received that must
be retained in a permanent fund. Only earnings from these funds may be used for purposes that support
environmental maintenance and improvements.
G. PROPERTY TAX CREDITS
Property taxes on homestead property (as defined by State Statutes) are partially reduced by property tax
credits. These credits are paid to the City by the State in lieu of taxes levied against homestead property.
The State remits these credits through installments each year. These credits are recognized as revenue by
the City at the time of collection.
38
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 2008 totaled $852,639. 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 funding 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, 2008
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
I. SPECIAL ASSESSMENT REVENUE RECOGNITION (CONTINUED)
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property
until full payment is made or the amount is determined to be excessive by the City Council or court action.
If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first
proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of
delinquent special assessments. Generally, the City will collect the full amount of its special assessments not
adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax
forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which
event the property is subject to such sale after five years.
J. INVENTORIES
The original cost of materials and supplies has been recorded as expenditures /expenses at the time of
purchase in both the Governmental and Proprietary Funds. These funds do not maintain material amounts of
materials and supplies.
K. INTERFUND RECEIVABLES/PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods provided
or services rendered. The year -end balances are classified as interfund receivables and payables on the
governmental fund balance sheets. The non - current portion of interfund loans are reported as "advances
to /from other funds." Advances between funds are offset by a fund balance reserve account in applicable
governmental funds to indicate they are not available for appropriation and are not expendable from
available financial resources.
L. CAPITAL ASSETS
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, sidewalks,
street lights, and similar items) are reported in the applicable governmental or business -type activities
columns in the government -wide financial statements. Capital assets exceeding the City's capitalization
threshold of $2,500 are recorded at historical cost or estimated historical cost if purchased or constructed.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects
are constructed. All existing City infrastructure has been capitalized regardless of date placed in service.
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with
accumulated depreciation reflected in the Statement of Net Assets. Capital assets are depreciated using the
straight -line method over their estimated useful lives. Since surplus assets are sold for an immaterial amount
when declared as no longer needed for City purposes, no salvage value is taken into consideration for
depreciation purposes. Useful lives vary from 3 to 30 years for Buildings, Office Furniture and Equipment,
Vehicles, Machine Shop and Equipment and Other assets, and 25 to 50 years for Infrastructure. Capital
assets not being depreciated include land and construction in progress.
40
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 fmancial 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 fmancing 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 fmancial 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.
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.
41
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Q. RECENTLY ISSUED ACCOUNTING STANDARDS (CONTINUED)
- 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 departments 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, 2008 is $17,760,590
and $17,709,740, respectively, and were entirely covered by federal depository insurance or by surety
bonds and collateral in accordance with Minnesota statutes.
42
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 fmial 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 rate "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 agreement 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
At December 31, 2008, the City's investment balances were as follows:
Cash Investments Held by Trustee —
Type Amount
Mutual Funds $ 88,504
The above mutual funds invest in U.S. Treasury Securities. These investments are held by an escrow agent
in accordance with escrow agreements established with the sale of the Lease Revenue Bonds Series 1998A
and the Public Project Revenue Refunding Bonds Series 1999C. The proceeds of these issues were used to
finance the construction of the Civic Complex, to refund the 2000 through 2010 maturities of the City's
1990A Public Project Revenue Bonds, and to partially refund the 1998A Civic Complex Lease Revenue
Bonds.
Investments Held with Broker —
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in
market interest rates. The City's policy to minimize interest rate risk includes investing primarily in short-
term securities and structuring the investment portfolio so that securities mature to meet cash requirements
for ongoing operations. Information about the sensitivity of the fair values of the City's investments to
market interest rate risk fluctuations is provided by the following table that shows the distribution of the
City's investments by maturity:
43
Immo
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
12 Months 13 to 24 25 to 60 More than
Type Total or Less Months Months 60 Months
Minnesota Municipal Money
Market Trust Fund $ 36,280 $ 36,280 $ $ $
Commercial Paper 3,614,659 3,614,659 - -
Government Agencies 2,776,393 - 1,869,941 906,452
Municipal Bonds 303,876 - 303,876
Mutual Fund 251,650 251,650 -
Total $ 6,982,858 $ 3,902,589 $ $ 2,173,817 $ 906,452
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 $ 36,280
Commercial Paper P -1 3,614,659
Government Agencies Aaa 2,776,393
Municipal Bonds Aaa 303,876
Mutual Fund Not Rated 251,650
Total $ 6,982,858
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
fair 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 market value of instruments.
Credit Risk — 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.
Custodial Credit Risk
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.
44
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 $ 630,478 9.03%
Federal Home Loan Mortgage Corporation 1,226,170 17.56%
Federal National Mortgage Association 606,621 8.69%
American General Financial Commercial Paper 1,232,527 17.65%
American Express Funding Commercial Paper 982,218 14.07%
Commoloco Commercial Paper 1,399,914 20.05%
45
taw
OEM
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2008 was as follows:
Governmental Activities:
Capital Assets, Not Being Depreciated:
Land
Construction in Progress
Total Capital Assets, Not Being Depreciated
Capital Assets, Being Depreciated:
Buildings
Office Equipment and Furniture
Vehicles
Machinery and Shop Equipment
Other Equipment
IN= Infrastructure
Total Capital Assets, Being Depreciated
Accumulated Depreciation for:
Buildings
Office Equipment and Furniture
Vehicles
Machinery and Shop Equipment
Other Equipment
- Infrastructure
Total Accumulated Depreciation
Total Capital Assets, Being Depreciated, Net
Governmental Activities Capital Assets, Net
Beginning
Balance
$ 2,809,059
5,738,921
8,547,980
Increases
Decreases
Transfers
$ - $ - $
749,273 (2,764,235)
749,273 (2,764,235)
Ending
Balance
- $ 2,809,059
(961,434) 2,762,525
(961,434) 5,571,584
6,496,870 2,882 - 6,499,752
1,070,622 45,764 (42,119) 1,074,267
1,990,339 383,333 (109,015) - 2,264,657
659,702 - 659,702
980,308 980,308
70,133,964 2,509,828 72,643,792
81,331,805 2,941,807 (151,134) 84,122,478
(2,120,058) (216,937) (2,336,995)
(579,477) (93,700) 42,119 (631,058)
(832,590) (228,241) 107,777 - (953,054)
(413,050) (31,602) - (444,652)
(588,596) (40,526) (629,122)
(35,659,314) (2,153,139) - (37,812,453)
(40,193,085) (2,764,145) 149,896 - (42,807,334)
41,138,720 177,662 (1,238) 41,315,144
$ 49,686,700 $ 926,935 $ (2,765,473) $ (961,434) $ 46,886,728
Depreciation expense was charged to governmental functions as follows:
Governmental Activities:
General Government
Public Safety
Public Services
Parks, Recreation and Forestry
•■•■• Conservation of Natural Resources
Community Development
Total Depreciation Expense, Governmental Activities
lamp
Beginning
Balance
Business -Type Activities:
Capital Assets, Not Being Depreciated:
Construction in Progress $ 13,054
Total capital assets, not being depreciated 13,054
Capital Assets, Being Depreciated:
Buildings
Machinery and Shop Equipment
Water and Sewer Lines
Total Capital Assets, Being Depreciated
Accumulated Depreciation for:
Buildings
Machinery and Shop Equipment
Water and Sewer Lines
Total Accumulated Depreciation
Total Capital Assets, Being Depreciated, Net
Business -Type Capital Assets, Net
$ 274,537
120,632
2,206,159
161,967
350
500
$ 2,764,145
Increases
Decreases
48,690 - -
331,825 111,424 (6,794)
39,810,478 - -
40,190,993 111,424 (6,794)
Transfers
961,434
(48,690) - -
( 199,690) (25,036) 6,794
(8,283,847) (819,322) -
(8,532,227) (844,358) 6,794
31,658,766 (732,934)
$ 31,671,820 $ (732,934) $ $
46
961,434
961,434
961,434
Ending
Balance
$ 13,054
13,054
48,690
436,455
40,771,912
41,257,057
(48,690)
(217,932)
(9,103,169)
(9,369,791)
31,887,266
$ 31,900,320
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 4 CITY INDEBTEDNESS
City indebtedness at December 31, 2008 is composed of the following:
Governmental Activities:
General Obligation Bonds:
2006A Equipment Certificates
2007A Equipment Certificates
2008A Equipment Certificates
Civic Complex Lease Rev. Bonds, Series 1998A
Public Project Revenue Ref. 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 Financing Bonds, Series 2007A
Total General Obligation Bonds
Special Assessment Bonds:
G.O. Improvement Bonds, Series 2002A
G.O. Improvement Bonds, Series 2002B
G.O. Improvement Refunding Bonds, Series 2003A
G.O. Improvement Bonds, Series 2003B
G.O. Improvement and Utility Bonds, Series 2004A
G.O. Improvement Bonds, Series 2005A
G.O. Improvement Refunding Bonds, Series 2005B
Total Special Assessment Bonds
Total Bonds
Unamortized Bond Discounts
Unamortized Bond Premiums
Compensated Absences Payable
Other Post Employment Benefit Plan
Total Governmental Activities
Business -Type Activities:
Revenue Bonds:
G.O. Water Revenue Refunding Bonds, Series 2006F
Total Revenue Bonds
Unamortized Bond Discounts
Compensated Absences Payable
Total Business -Type Activities
Issue
Date
Final
Maturity
Date
2/1/2006 12/31/2009
2/1/2007 12/31/2010
2/1/2008 12/31/2011
8/1/1998 2/1/2019
9/1/1999 2/1/2010
8/15/2006 2/1/2023
8/15/2006 2/1/2017
11/1/2006 2/1/2018
7/15/2007 2/1/2024
8/1/2002 2/1/2013
8/1/2002 2/1/2013
12/1/2003 2/1/2019
12/1/2003 2/1/2014
11/15/2004 2/1/2020
11/1/2005 2/1/2021
11/1/2005 2/1/2015
Interest
Rate
4.00%
4.00%
4.00%
4.20%-5.35%
4.75%-5.10%
4.00% -4.30%
4.00 % -4.15%
4.00%
4.00 % - 4.125%
3.00 %4.10%
3.20%-5.55%
2.00%-4.25%
3.20 % -5.60%
1.90 %4.45%
4.35%-5.I5%
3.75 %5.00%
Original
Issue
Payable
12/31/2008
$ 307,000 $ 110,000
160,000 110,000
209,000 209,000
5,350,000 385,000
980,000 185,000
2,460,000 2,460,000
570,000 520,000
2,990,000 2,990,000
4,215,000 4,215,000
17,241,000 11,184,000
645,000 135,000
2,110,000 1,190,000
2,090,000 715,000
250,000 175,000
1,330,000 1,115,000
5,550,000 5,080,000
3,755,000 2,955,000
15,730,000 11,365,000
32,971,000 22,549,000
(45,490) (39,427)
180,247 119,290
N/A 655,644
N/A 22,481
$ 33,105,757 $ 23,306,988
11/1/2006 2/1/2012 3.55 % - 3.625% $ 1,740,000 $ 1,530,000
1,740,000 1,530,000
(4,002) (2,350)
N/A 37,224
$ 1,735,998 $ 1,564,874
47
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 4 CITY INDEBTEDNESS (CONTINUED)
The following is a schedule of changes in City indebtedness for the year ended December 31, 2008:
Payable Payable Due Within
12/31/2007 Issues Payments 12/31/2008 One Year
Governmental activities:
Bonded debt:
General Obligation $ 11,569,000 $ 209,000 $ 594,000 $ 11,184,000 $ 808,000
Special Assessment 12,520,000 1,155,000 11,365,000 1,100 000
Unamortized Bond Discounts (42,294) - (2,867) (39,427)
Unamortized Bond Premiums 138,410 19,120 119,290
Compensated Absences Payable 635,904 570,485 550,745 655,644 446,582
Other Post Employment Benefit Plan - 41,152 18,671 22,481 -
Total Governmental Activities 24,821,020 820,637 2,334,669 23,306,988 2,354,582
Business -Type Activities:
Revenue Bonds
Unamortized Bond Discounts
Compensated Absences Payable
Total Business -Type Activities
Total
1,855,000
(3,113)
32,982
1,884,869
$ 26,705,889
34,667
34,667
325,000 1,530,000
(763) (2,350)
30,425 37,224
354,662 1,564,874
855,304 $ 2,689,331
360,000
27,396
387,396
$ 24,871,862 $ 2,741,978
All long -term bonded indebtedness outstanding at December 31, 2008 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,
2009 5 1,908,000 $ 960,161 $ 360,000 $ 48,611 $ 3,276,772
2010 1,762,000 870,114 375,000 35,471 3,042,585
2011 1,849,000 791,404 390,000 21,701 3,052,105
20I2 1,930,000 709,580 405,000 7,341 3,051,921
2013 2,065,000 621,346 2,686,346
2014 -2018 8,445,000 1,896,301 10,341,301
2019 -2023 4,310,000 466,741 - 4,776,741
2024 280,000 5,775 285,775
Total 5 22,549,000 $ 6,321,422 $ 1,530,000 $ 113,124 $ 30,513,546
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.
48
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 fmancing 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.
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 2008 is computed as follows:
12/31/08
Market value $ 2,021,961,000
Applicable percentage 3.0%
Debt Limit 60,658,830
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
24,079,000
(11,365,000)
(185,000)
(2,460,000)
(520,000)
(4,215,000)
(1,530,000)
3,804,000
$ 56,854,830
low
UMW
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 percent 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 1, a
full annuity is available when age plus years of service equal 90. Normal retirement age is 65 for Basic and
Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social
Security benefits capped at 66 for coordinated members hired on or after July 1, 1989. A reduced
retirement annuity is also available to eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A single -life annuity is a
lifetime annuity that ceases upon the death of the retiree, no survivor annuity is payable. There are also
various types of joint and survivor annuity options available which will be payable over joint lives.
Members may also leave their contributions in the fund upon termination of public service in order to
qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to
members who leave public service, but before retirement benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to
active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving
them yet, are bound by the provisions in effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for PERF and PEPFF. That report may be obtained on the internet at
www.mnpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103 -2088 or by
calling (65 I) 296 -7460 or 1- 800 - 652 -9026.
50
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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. Contribution rates in
the Coordinated Plan will increase in 2009 to 6.75 %. PEPFF members were required to contribute 8.6% of
their annual covered salary in 2008. That rate will increase to 9.4% in 2009. The City is required to
contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERF members,
6.5% for Coordinated Plan PERF members, and 12.9% for PEPFF members. Employer contribution rates
for the Coordinated Plan and PEPFF will increase to 6.75% and 14.1 %, respectively, effectively January 1,
2009. The City's contributions to the Public Employees Retirement Fund for the years ending December 31,
2008, 2007, and 2006 were $183,456, $172,504 and $156,599 respectively. The City's contributions to the
Public Employees Police & Fire Fund for the years ended December 31, 2008, 2007, and 2006 were
$268,569, $219,592, and $187,212 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, 2008 as follows:
Fund Balance
Deficit
Dedicated Parks $ (668,224)
Tax Increment Financing 1 -11 (907,563)
I35E Interchange (20,833)
CSAH 14/8 Reconstruction Project (119,881)
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 2008:
Budget Actual Excess
Program Recreation Special Revenue Fund $ 142,705 $ 182,808 $ (40,103)
51
w
✓ ENN
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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, 2008.
Note 10 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
General Obligation bond issues sold by the City are financed by ad valorem tax levies and special assessment bond
issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied
against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies
is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is notified
and instructed to levy these taxes over the appropriate years. The future tax levies are subject to cancellation when
and if the City has provided alternative sources of financing. The City Council is required to levy any additional
taxes found necessary for full payment of principal and interest.
These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31,
2008.
Future scheduled tax levies for all bonds outstanding at December 31, 2008 totaled $25,780,392.
Note 11 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY
At December 31, 2008, 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, 2008 are shown on the
various balance sheets as segregations of the fund equity. A summary of such designations and reservations at
December 31, 2008 is as follows:
Governmental Activity:
General Fund:
Reserved for Prepaid Items $ 190,825
Designated for Cash Flow Reserve 5,393,316
Improvement Bonds of 2005A:
Reserved for Debt Retirement 1,069
Area and Unit Charge:
Reserved for Advance to Other Funds 812,400
Designated for Capital Improvements 1,836,563
Legacy Woods Edge Improvement Fund:
Designated for Capital Improvements 595,320
Other Nonmajor Governmental Funds:
Reserved for Prepaid Items 1,973
Reserved for Debt Retirement 3,404,203
Reserved for Environmental Improvements 100,000
Reserved for Long -Term Notes Receivable 225,000
Designated for Recreation Purposes 106,573
Designated for Capital Improvements 4,113,978
52
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 2008 was
$134,719.
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, 2008 are as follows:
Receivable Payable
Governmental Activity:
General Fund $ 1,075,240 $ -
Other Nonmajor Governmental Funds - 1,075,240
$ 1,075,240 $ 1,075,240
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, 2008 are as follows:
Governmental Activity:
Area and Unit Charge
Other Nonmajor Governmental Funds
Receivable Payable
$ 812,400 $
812,400
$ 812,400 $ 812,400
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 2008 are as follows:
Transfer In Transfer Out
Governmental Activity:
General Fund $ 468 $ (806,180)
G.O. Improvement Bonds 2005A 25,000
Area and Unit Charge - (542,911)
Legacy Woods Edge Improvement Fund 2,188,729 (1,200,000)
Other Nonmajor Governmental Funds 2,549,194 (2,247,068)
Total Governmental Activity 4,763,391 (4,796,159)
Business -Type Activity:
Sewer Fund 57,768 (25,000)
Total Business -Type Activity 57,768 (25,000)
Total $ 4,821,159 $ (4,821,159)
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
Maw
Isms
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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, 2008, two series of Industrial Revenue Bonds were outstanding with aggregate
remaining principal balances of $1,095,000 and $1,600,000, respectively, and two series Commercial Revenue Notes
were outstanding with an aggregate remaining principal balance of $3,223,854 and $500,000, respectively.
Note 17 LEASE COMMITMENT
The City of Lino Lakes entered into an agreement dated December 8, 1997 to lease space within the City Hall
complex to the Independent School District No. 12 (ISD 12). The lease term continues through June 30, 2009 and
requires payments of $110 per square foot over the lease term for a total of $1,200,000. The schedule of remaining
payments is as follows:
2009
Total
54
Amount
$ 75,000
$ 75,000
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 17 LEASE COMMITMENT (CONTINUED)
The prorated carrying value of the building being leased is as follows:
Building $ 929,970
Less: Accumulated Depreciation (278,991)
Net $ 650,979
Note 18 JOINT FIRE VENTURE
The Centennial Fire District (the District) was established under a joint powers agreement between the City of Lino
Lakes and two other cities. The general purpose of the District is to provide fire protection services including, but
not limited to, fire prevention, firefighting and rescue service. Each member city is entitled to appoint two
commissioners to the District's Board.
Each calendar year, participating cities are to pay the District its share of the total operating and capital budget in
accordance with a funding formula contained in Section VII of the joint powers agreement. The funding formula
takes into account each city's average number of calls, population, and total market value.
During 2008, the City of Lino Lakes' contributions to the District were as follows:
Operating $ 487,757
Capital 69,000
Total $ 556,757
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, 2008 are as follows:
Total Assets $ 1,057,485
Total Liabilities 127,212
Total Net Assets 930,273
Total Operating Revenue 679,546
Total Operating Expenses 648,011
Note 19 OTHER POSTEMPLOYMENT BENEFIT PLAN
At December 31, 2008, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. The City
engaged an actuary to determine the City's liability for postemployment healthcare benefits other than pensions as of
January 1, 2008.
A. Plan Description
The City provides benefits for retirees as required by Minnesota Statute §471.61 subdivision 2b. Active
employees, who retire from the City when over age 50 and with 20 years of service, may continue coverage
with respect to both themselves and their eligible dependent(s) under the City's health benefits program
until age 65. Pursuant to the provisions of the plan, retirees are required to pay the total premium cost. As of
December 31, 2008 there were approximately 63 active participants and 5 retired participants receiving
benefits from the City's health plans.
55
UMW
WWI
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 19 OTHER POST EMPLOYMENT BENEFIT PLAN (CONTINUED)
B. Funding Policy
The City funds its OPEB obligation on a pay as you go basis. For fiscal year 2008, the City contributed
$18,671 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
Interest on Net OPEB Obligation -
Adjustment to Annual Required Contribution -
Annual OPEB Cost (Expense) 41,152
Contributions Made (18,671)
Increase in Net OPEB Obligation 22,481
Net OPEB Obligation- Beginning of Year -
Net OPEB Obligation- End of Year $ 22,481
The City's annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2008:
Percentage
Fiscal Annual of Annual Net
Year OPEB OPEB Cost OPEB
Ended Cost Constributed Obligation
12/31/2008 $ 41,152 45.4% $ 22,481
D. Funded Status and Funding Progress
As of January 1, 2008, the most recent actuarial valuation date, the City's unfunded actuarial accrued
liability (UAAL) was $329,191. The annual payroll for active employees covered by the plan in the
actuarial valuation was $4,859,980 for a ratio of UAAL to covered payroll of 6.8 %.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions
about the probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the
plan and the annual required contributions of the employer are subject to continual revision as actual results
are compared with past expectations and new estimates are made about the future. The schedule of funding
progress, presented as required supplementary information following the notes to the financial statements,
presents multiyear trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
56
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 19 OTHER POST EMPLOYMENT BENEFIT PLAN (CONTINUED)
E. Actuarial Methods and Assumptions
Projections of benefits for fmancial 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, 2008 was 29 years.
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, 2008
Statement 11
Page 1 of 7
2008
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Revenue:
General property taxes:
Current and delinquent $ 7,773,236 $ 7,773,236 $ 6,838,937 $ (934,299)
Fiscal disparities - - 852,639 852,639
Total general property taxes 7,773,236 7,773,236 7,691,576 (81,660)
Licenses and permits:
Business 41,900 58,900 60,288 1,388
Non - business 602,600 764,600 741,847 (22,753)
Total licenses and permits 644,500 823,500 802,135 (21,365)
Intergovernmental:
State:
Market Value Credit 280,000 280,000 124,929 (155,071)
Police state aid 160,000 160,000 175,581 15,581
MSA maintenance 167,000 167,000 167,575 575
Other 15,000 15,000 14,528 (472)
County/Regional:
Solid waste 35,000 35,000 29,625 (5,375)
Other 5,000 5,000 5,004 4
Total intergovernmental 662,000 662,000 517,242 (144,758)
Special Assessments:
Penalties and Interest 5,000 5,000 4,323 (677)
Charges for services:
General government 25,500 25,500 22,591 (2,909)
Planning/engineering 15,000 15,000 6,314 (8,686)
Fees retained from collection for
other governments - SAC /surcharge 4,000 4,000 1,091 (2,909)
Administrative charge - other funds 55,000 55,000 50,000 (5,000)
Aerial map charge - other funds 12,000 12,000 5,310 (6,690)
Public safety 141,000 285,000 364,249 79,249
Total charges for services 252,500 396,500 449,555 53,055
Fines and forfeits 110,000 110,000 133,531 23,531
Investment earnings 200,000 200,000 134,521 (65,479)
Refunds and reimbursements 20,000 20,000 8,637 (11,363)
Miscellaneous:
Gas franchise fees 120,000 120,000 134,719 14,719
Cable TV 30,000 30,000 32,670 2,670
Donations 5,000 6,250 4,516 (1,734)
Other 85,562 85,562 845 (84,717)
Total miscellaneous 240,562 241,812 172,750 (69,062)
Total Revenue 9,907,798 10,232,048 9,914,270 (317,778)
58
_ CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
-
Year Ended December 31, 2008
2008
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 $ 41,692 $ 41,692 $ 33,933 $ 7,759
- Supplies 400 400 424 (24)
Other services and charges 37,350 72,350 65,964 6,386
Contractual Services 27,793 27,793 16,932 10,861
Total mayor and council 107,235 142,235 117,253 24,982
Elections:
Current:
Personal services 23,908 23,908 19,136 4,772
Supplies 150 150 332 (182)
Other services and charges 1,150 1,150 1,883 (733)
Contractual Services 1,000 1,000 719 281
- Total elections 26,208 26,208 22,070 4,138
Administration:
Current:
- Personal services 479,627 479,627 474,778 4,849
Other services and charges 22,300 22,300 33,261 (10,961)
Contractual Services 7,000 7,000 7,044 (44)
Total administration 508,927 508,927 515,083 (6,156)
Finance:
Current:
Personal services 311,326 311,326 320,613 (9,287)
Supplies 1,500 1,500 1,248 252
Other services and charges 90,500 90,500 85,066 5,434
Contractual Services 85,900 85,900 84,261 1,639
- Capital outlay 15,000 15,000 - 15,000
Total finance 504,226 504,226 491,188 13,038
Cable TV:
..- Current:
Personal services 2,530 2,530 1,679 851
Supplies 50 50 50
Capital outlay 600 600 - 600
Total cable TV 3,180 3,180 1,679 1,501
Consultants:
Current:
- Legal 181,500 _ 181,500 186,814 (5,314)
59
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2008
2008
Statement 11
Page 3 of 7
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
General government (continued):
Engineering/planning:
Current:
Contractual services $ 245,000 $ 245,000 $ 232,108 $ 12,892
Total engineering/planning 245,000 245,000 232,108 12,892
Senior Service:
Current:
Personal services 33,526 33,526 34,047 (521)
Other services and charges 2,700 2,700 2,408 292
Capital outlay: 2,500 2,500 2,944 (444)
Total senior service 38,726 38,726 39,399 (673)
Charter commission:
Current:
Other services and charges 5,700 5,700 5,867 (167)
Total charter commission 5,700 5,700 5,867 (167)
General government buildings:
Current:
Personal services 92,673 92,673 88,791 3,882
Supplies 42,500 42,500 33,291 9,209
Other services and charges 320,900 320,900 296,092 24,808
Contractual services 29,000 29,000 19,809 9,191
Total general government buildings 485,073 485,073 437,983 47,090
Total general government
2,105,775 2,140,775 2,049,444 91,331
60
-- CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2008
Public safety:
Police:
Current:
- Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total police
Fire protection:
"' Current:
Contractual services
Building inspection:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total building inspection
Total public safety
Public works:
Streets:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Total streets
Fleet:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Total fleet
Total public works
Statement 11
Page 4 of 7
2008
Original
Budget
Final
Budget
$ 2,888,205 $ 2,940,205
47,938 67,188
103,115 136,115
30,000 30,000
32,050 38,050
3,101,308 3,211,558
Variance with
Final Budget
Positive
Actual (Negative)
$ 2,752,382
64,114
135,830
35,599
41,441
3,029,366
487,757 487,757 487,757
324,973 324,973 314,163
1,630 1,630 521
25,000 25,000 14,998
1,750 1,750 1,025
500 500 -
353,853 353,853 330,707
3,942,918 4,053,168 3,847,830
572,412
93,500
78,500
167,500
911,912
97,355
204,000
48,900
2,700
352,955
1,264,867
61
572,412
127,500
78,500
185,500
963,912
97,355
265,000
48,900
2,700
413,955
1,377,867
555,611
110,751
91,849
180,879
939,090
100,887
279,565
46,725
2,363
429,540
1,368,630
$ 187,823
3,074
285
(5,599)
(3,391)
182,192
10,810
1,109
10,002
725
500
23,146
205,338
16,801
16,749
(13,349)
4,621
24,822
(3,532)
(14,565)
2,175
337
(15,585)
9,237
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2008
2008
Statement 11
Page 5 of 7
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Parks and recreation:
Parks:
Current:
Personal services $ 493,410 $ 493,410 $ 480,546 $ 12,864
Supplies 42,000 42,000 41,759 241
Other services and charges 44,700 44,700 39,366 5,334
Contractual services 25,950 25,950 11,156 14,794
Total parks 606,060 606,060 572,827 33,233
Recreation:
Current:
Personal services 271,690 281,690 258,586 23,104
Supplies 2,500 2,500 2,405 95
Other services and charges 17,000 17,000 12,554 4,446
Contractual services 800 800 1,170 (370)
Capital outlay 24,000 24,000 24,000 -
Total recreation 315,990 325,990 298,715 27,275
Total parks and recreation
922,050 932,050 871,542 60,508
Conservation of natural resources:
Forestry:
Current:
Personal services 49,835 49,835 49,475 360
Supplies 1,400 1,400 1,596 (196)
Other services and charges 800 800 732 68
Contractual services 9,100 9,100 3,715 5,385
Capital outlay 1,500 1,500 1,397 103
Total forestry 62,635 62,635 56,915 5,720
Environmental:
Current:
Personal services 84,786 84,786 80,315 4,471
Supplies 1,350 1,350 1,047 303
Other services and charges 13,875 13,875 5,527 8,348
Contractual services 1,250 1,250 627 623
Total environmental 101,441 101,441 87,516 13,925
62
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
r.
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2008
2008
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 $ 28,830 $ 28,830 $ 29,393 $ (563)
Supplies - 82 (82)
Other services and charges 700 700 110 590
Contractual services 8,000 8,000 5,635 2,365
Total solid waste abatement 37,530 37,530 35,220 2,310
Total conservation of natural resources 201,606 201,606 179,651 21,955
Community Development:
Community Development:
Current:
Personal services 236,787 236,787 230,626 6,161
Supplies 200 200 200
Other services and charges 9,790 9,790 4,393 5,397
Contractual Services 1,400 1,400 670 730
Capital outlay 680 680 224 456
Total community development 248,857 248,857 235,913 12,944
Economic Development:
Current:
Personal services 90,129 90,129 86,707 3,422
Supplies 200 200 107 93
Other services and charges 11,600 11,600 1,001 10,599
Contractual services 70,764 70,764 70,409 355
Total economic development 172,693 172,693 158,224 14,469
Planning and zoning commission:
-
Current:
Personal services 167,872 167,872 164,665 3,207
Supplies 500 500 79 421
Other services and charges 26,750 26,750 7,317 19,433
Contractual services 62,550 168,550 179,153 (10,603)
Capital outlay 360 360 - 360
Total planning and zoning commission 258,032 364,032 351,214 12,818
Total community development 679,582 785,582 745,351 40,231
Other :
Contingency 50,000
Total Expenditures 9,166,798 9,491,048 9,062,448 428,600
Revenue over Expenditures 741,000 741,000 851,822 110,822
63
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2008
Other fmancing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Net increase (decrease) in fund balance
Fund Balance - January 1
Fund balance - December 31
Statement 11
Page 7 of 7
2008
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
$ - $ - $ 468 $ 468
(741,000) (741,000) (806,180) (65,180)
(741,000) (741,000) (805,712) (64,712)
$ $ - 46,110 $ 46,110
64
5,538,031
$ 5,584,141
Statement 12
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFIT PLAN
December 31, 2008
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)
WINN
1/1/2008 $ - $ 329,191 $ 329,191 $4,859,980 6.8%
The City adopted GASB 45 as of January 1, 2008. In subsequent fiscal years, it will provide multiyear trend information that
shows whether the actuarial value of the plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits. Additional information related to the Plan as it relates to OPEB is provided in Note 19.
65
CITY OF LINO LAKES, MINNESOTA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2008
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:
Administration $ 508,927 $ 515,083 $ (6,156)
Consultants 181,500 186,814 (5,314)
Senior service 38,726 39,399 (673)
Charter commission 5,700 5,867 (167)
Public works
Fleet 413,955 429,540 (15,585)
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.
Imor
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.
—
SAC Revolving - to account for refunds from the Metropolitan Council Environmental Service for
properties that paid Sewer Area Charges (SAC) that will be collected in the future.
Interim Construction - to account for the construction of public improvements.
Town Center Project and Infrastructure Funds - to account for costs associated with the construction of
the City Town Center project.
—
Tax Increment Funds - to account for development projects financed with tax increments.
Capital Project Funds (Continued)
Birch Hodgson Street 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.
I 35E Interchange Fund - established to account for the activity related to the I35E /CSAH 14 Interchange
Reconstruction Project.
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, 2008
Special Revenue Debt Service
Lease
Economic Special Certificates Revenue
Development Program Revenue of Bonds
Authority Recreation Subtotal Indebtedness of 1998A
Assets
Cash and investments $ $ 115,168 $ 115,168 $ 115,830 $ 412,558
Cash and investments
with escrow agent 88,504
Accounts receivable 410 410 -
Due from other governmental units
Taxes receivable:
Delinquent 7,846 6,659
Due from county 2,095 1,748
Delinquent tax increment - -
Special assessments receivable:
Delinquent
Deferred
Due from county -
Long-term notes receivable 225,000 225,000
Prepaid items - 1,973 1,973
Total assets $ 225,000 $ 117,551 $ 342,551 $ 125,771 $ 509,469
Liabilities and Fund Balance
Liabilities:
Interfund payable $ $ - $ $ $
Accounts payable 8,579 8,579
Salaries payable 426 426
Advances from other funds - -
Deferred revenue 7,846 6,659
Total liabilities 9,005 9,005 7,846 6,659
Fund balance (deficit):
Reserved for prepaid items 1,973 1,973 -
Reserved for debt retirement - 117,925 502,810
Reserved for environmental improvement - - -
Reserved for long -term notes receivable 225,000 225,000
Unreserved:
Designated:
Recreation programs 106,573 106,573
Capital improvements -
Undesignated
Total fund balance (deficit) 225,000 108,546 333,546 117,925 502,810
Total liabilities and fund balance $ 225,000 $ 117,551 $ 342,551 $ 125,771 $ 509,469
67
Statement 13
Page 1 of 4
Debt Service (Continued)
Public Project Improvement Improvement and Improvement
Refunding Improvement Improvement Refunding Improvement Utility Revenue Refunding
Bonds Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of
of1999C 2002A 2002B 2003A 2003B 2004A 2005B
$ 354,124 $ 262,748 $ 938,512 $ 54,728 $ 86,538 $ 311,056 $ 511,585
3,616
992
657
186
3,538
975
- - 371 4,946
83,522 386,395 184,340 41,216 217,218 306,370
- - - 572
358,732 $ 346,270 $ 1,324,907 $ 239,068 $ 128,597 $ 528,645 $ 827,986
3,616 83,522 386,395 184,340
3,616 83,522 386,395 184,340
41,873
41,873
217,589 314,854
217,589 314,854
355,116 262,748 938,512 54,728 86,724 311,056
513,132
355,116 262,748 938,512 54,728 86,724 311,056 513,132
$ 358,732 $ 346,270 $ 1,324,907 $ 239,068 $ 128,597 $ 528,645 $ 827,986
68
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2008
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 $ 54,912 $ 15,688 $ 60,531 $ 126,659 $ 3,305,469
Cash and investments
with escrow agent - 88,504
Accounts receivable
Due from other govemmental units
Taxes receivable:
Delinquent 2,683 3,292 28,291
Due from county 939 1,095 8,030
Delinquent tax increment -
Special assessments receivable:
Delinquent - 5,317
Deferred 153,630 1,372,691
Due from county 1,628 2,200
Long -term notes receivable - -
Prepaid items
Total assets $ 58,534 $ 170,946 $ 64,918 $ 126,659 $ 4,810,502
Liabilities and Fund Balance
Liabilities:
Interfund payable $ $ $ $ $
Accounts payable
Salaries payable
Advances from other funds
Deferred revenue 2,683 153,630 3,292 1,406,299
Total liabilities 2,683 153,630 3,292 1,406,299
Fund balance (deficit):
Reserved for prepaid items -
Reserved for debt retirement 55,851 17,316 61,626 126,659 3,404,203
Reserved for environmental improvement -
Reserved for long -term notes receivable
Unreserved:
Designated:
Recreation programs
Capital improvements
Undesignated
Total fund balance (deficit) 55,851 17,316 61,626 126,659 3,404,203
Total liabilities and fund balance $ 58,534 $ 170,946 $ 64,918 $ 126,659 $ 4,810,502
69
taw
Statement 13
Page 2 of 4
Capital Projects
Capital Capital Closed Surface
Improvement Equipment Bond Street Water SAC
Projects Revolving Fund Fund Reconstruction Sealcoating Management Revolving
$ 1,570,390 $ 137,196 $ 1,106,097 $ 620,783 $ 323,184 $ 188,528 $
1,500
1,248 187 20,137
13,024 841 344,429
479 509
$ 1,570,390 $ 137,196 $ 1,120,848 $ 620,783 $ 324,212 $ 555,103 $
$ $ $ $ $ - $
8,525 1,085
14,272 1,028 364,566
22,797 2,113 364,566
1,570,390 137,196 - 620,783 322,099 190,537
- - 1,098,051 - - -
1,570,390 137,196 1,098,051 620,783 322,099 190,537
$ 1,570,390 $ 137,196 $ 1,120,848 $ 620,783 $ 324,212 $ 555,103 $
70
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2008
Capital Projects (continued)
Tax Tax Tax Tax Tax
Increment Increment Increment Increment Increment
Financing Financing Financing Financing Financing
1 -4 1 -5 1 -9 1 -10 1 -11
Assets
Cash and investments $ $ 64,359 $ 297,449 $ 214,702 $
Cash and investments
with escrow agent
Accounts receivable
Due from other governmental units
Taxes receivable:
Delinquent -
Due from county 1,128 28,341
Delinquent tax increment 41,463 66,169
Special assessments receivable:
Delinquent
Deferred
Due from county
Long -term notes receivable
Prepaid items
Total assets
Liabilities and Fund Balance
$ $ 64,359 $ 340,040 $ 214,702 $ 94,510
Liabilities:
Interfund payable $ $ $ $ - $ 934,526
Accounts payable 18,129 69,768 69,922 1,378
Salaries payable - -
Advances from other funds -
Deferred revenue 41,463 66,169
Total liabilities 18,129 111,231 69,922 1,002,073
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 46,230 228,809 144,780
Undesignated - - - (907,563)
Total fund balance (deficit) 46,230 228,809 144,780 (907,563)
Total liabilities and fund balance $ $ 64,359 $ 340,040 $ 214,702 $ 94,510
71
VaNKI
Statement 13
Page 3 of 4
Capital Projects (Continued)
Office
Birch Street Equipment CSAH 14/8 Capital
Hodgson Road Dedicated Municipal Revolving Reconstruction I35E Projects
Improvement Parks State Aid Fund Project Interchange Subtotal
$ 14,813 $ 144,176 $ 633,651 $ 204,690 $ $ $ 5,520,018
1,500
29,469
107,632
21,572
358,294
988
$ 14,813 $ 144,176 $ 633,651 $ 204,690 $ $ $ 6,039,473
812,400
812,400
$ 119,881 $ 20,833 $ 1,075,240
168,807
812,400
487,498
119,881 20,833 2,543,945
14,813 633,651 204,690 4,113,978
(668,224) - - (119,881) (20,833) (618,450)
14,813 (668,224) 633,651 204,690 (119,881) (20,833) 3,495,528
$ 14,813 $ 144,176 $ 633,651 $ 204,690 $ $ $ 6,039,473
72
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2008
Statement 13
Page 4 of 4
Permanent
Fund
Foxborough
Environment Total
Fund 2008
Assets
Cash and investments $ 122,224 $ 9,062,879
Cash and investments
with escrow agent - 88,504
Accounts receivable 410
Due from other governmental units 1,500
Taxes receivable:
Delinquent - 28,291
Due from county 37,499
Delinquent tax increment 107,632
Special assessments receivable:
Delinquent 26,889
Deferred 1,730,985
Due from county 3,188
Long -term notes receivable 225,000
Prepaid items 1,973
Total assets $ 122,224 $ 11,314,750
Liabilities and Fund Balance
Liabilities:
Interfund payable $ $ 1,075,240
Accounts payable 177,386
Salaries payable 426
Advances from other funds - 812,400
Deferred revenue 1,893,797
Total liabilities 3,959,249
Fund balance (deficit):
Reserved for prepaid items 1,973
Reserved for debt retirement - 3,404,203
Reserved for environmental improvement 100,000 100,000
Reserved for long -term notes receivable - 225,000
Unreserved:
Designated:
Recreation programs 106,573
Capital improvements - 4,1 13,978
Undesignated 22,224 (596,226)
Total fund balance (deficit) 122,224 7,355,501
Total liabilities and fund balance $ 122,224 $ 11,314,750
73
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2008
Special Revenue Debt Service
Lease
Economic Special Certificates Revenue
Development Program Revenue of Bonds
Authority Recreation Subtotal Indebtedness of 1998A
Revenue:
General property taxes $ $ $ - $ 222,642 $ 185,219
Tax increments - -
Intergovernmental -
Special assessments - - 154 132
Charges for services 183,785 183,785 -
Investment earnings 4,693 4,693 4,838 7,629
Refunds and reimbursements - - -
Miscellaneous 112,500
Total revenue 188,478 188,478 227,634 305,480
Expenditures:
Current:
General government 165 165
Public works -
Parks, recreation and forestry 182,808 182,808
Conservation of natural resources
Community development
Capital outlay:
General government
Public safety
Public works
Parks, recreation and forestry
Debt service:
Principal 194,000 250,000
Interest and fiscal charges 25,045 28,791
Total expenditures 165 182,808 182,973 219,045 278,791
Revenue over (under) expenditures (165) 5,670 5,505 8,589 26,689
Other financing sources (uses):
Transfer in 165 165
Transfer out
Sale of property -
Issuance of debt
Total other financing
sources (uses) 165 165
Net increase (decrease) in fund balance 5,670 5,670 8,589 26,689
Fund balance (deficit)
Beginning of year 225,000 102,876 327,876 109,336 476,121
Fund balance (deficit) - December 31 $ 225,000 $ 108,546 $ 333,546 $ 117,925 $ 502,810
74
Statement 14
Page 1 of 4
Debt Service (Continued)
Public Project Improvement Improvement and Improvement
Refunding Improvement Improvement Refunding Improvement Utility Revenue Refunding
Bonds Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of
of 1999C 2002A 2002B 2003A 2003B 2004A 2005B
$ 105,944
69 17,129 114,075 34,264
9,727 9,058 30,747 -
115,740 26,187
$ 20,033 $ $ 104,454
5,879 119,486 62,548
2,463 7,950 980
144,822 34,264 28,375 127,436 167,982
100,000 110,000 200,000 55,000 25,000 75,000 415,000
14,013 7,838 68,273 28,398 9,590 43,021 135,027
114,013 117,838 268,273 83,398 34,590 118,021 550,027
1,727 (91,651) (123,451) (49,134) (6,215) 9,415 (382,045)
1,727 (91,651)
353,389
354,399
355,116 $ 262,748
82,813
460,098
82,813 - 460,098
(123,451) 33,679 (6,215) 9,415 78,053
1,061,963 21,049 92,939 301,641 435,079
938,512 $ 54,728 $ 86,724 $ 311,056 $ 513,132
75
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2008
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 $ 104,204 $ $ 120,677 $ $ 863,173
Tax increments - - - -
Intergovernmental - - 275,804 275,804
Special assessments 37 18,682 50 - 372,505
Charges for services - - - - -
Investment earnings 391 534 343 5,909 80,569
Refunds and reimbursements - - -
Miscellaneous 112,500
Total revenue 104,632 19,216 121,070 281,713 1,704,551
Expenditures:
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 - - 1,474,000
Interest and fiscal charges 104,004 22,708 120,185 177,492 784,385
Total expenditures 104,004 72,708 120,185 177,492 2,258,385
Revenue over (under) expenditures 628 (53,492) 885 104,221 (553,834)
Other financing sources (uses):
Transfer in 542,911
Transfer out
Sale of property -
Issuance of debt -
Total other financing
sources (uses) 542,911
Net increase (decrease) in fund balance 628 (53,492) 885 104,221 (10,923)
Fund balance (deficit)
Beginning of year 55,223 70,808 60,741 22,438 3,415,126
Fund balance (deficit) - December 31 $ 55,851 $ 17,316 $ 61,626 $ 126,659 $ 3,404,203
76
Statement 14
Page 2 of 4
Capital Projects
Capital Capital Closed Surface
Improvement Equipment Bond Street Water SAC
Projects Revolving Fund Fund Reconstruction Sealcoating Management Revolving
$ - $ $ - $ $ - $ $
3,281 14,215 115 74,817
49,574 8,405 38,274 21,008 17,787 5,212 1,995
98 - -
195,682
245,256 8,405 41,653 35,223 17,902 80,029 1,995
1,972 10,126
7,482
145,622
304,104
350,805 31,870
(496)
9,454 449,726 10,126 350,805 31,870 (496)
235,802 (441,321) 31,527 35,223 (332,903) 48,159 2,491
291,000 385,000
(57,768)
13,750
209,000
513,750 385,000 (57,768)
235,802 72,429 31,527 35,223 52,097 48,159 (55,277)
1,334,588 64,767 1,066,524 585,560 270,002 142,378 55,277
$ 1,570,390 $ 137,196 $ 1,098,051 $ 620,783 $ 322,099 $ 190,537 $
77
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2008
Capital Projects (Continued)
Tax Increment Tax Increment Tax Increment Tax Increment Tax Increment
Financing Financing Financing Financing Financing
1 -4 1 -5 1 -9 1 -10 1 -11
Revenue:
General property taxes $ $ $ - $ - $
Tax increments 41,383 234,789 194,969 69,195
Intergovernmental - -
Special assessments
Charges for services - - -
Investment earnings 1,340 1,542 6,232 3,960
Refunds and reimbursements - - -
Miscellaneous
Total revenue 1,340 42,925 241,021 198,929 69,195
Expenditures:
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
Interest and fiscal charges
Total expenditures
7
7
36,016 168,660 154,662 8,760
36,016 168,660 154,662 8,760
Revenue over (under) expenditures 1,333 6,909 72,361 44,267 60,435
Other financing sources (uses):
Transfer in 1,200,118
Transfer out (38,729) (571) (2,150,000)
Sale of property
Issuance of debt
Total other financing
sources (uses) (38,729) (571) (949,882)
Net increase (decrease) in fund balance (37,396) 6,338 72,361 44,267 (889,447)
Fund balance (deficit)
Beginning of year 37,396 39,892 156,448 100,513 (18,116)
Fund balance (deficit) - December 31 $ $ 46,230 $ 228,809 $ 144,780 $ (907,563)
78
Statement 14
Page 3 of 4
Capital Projects (Continued)
Office
Birch Street Equipment CSAH 14/8 Capital
- Hodgson Road Dedicated Municipal Revolving Reconstruction I35E Projects
Improvement Parks State Aid Fund Project Interchange Subtotal
$ $ $ $ $ $ - $
540,336
211,430 211,430
92,428
513 6,362 21,204 6,672 190,080
98
21,048 216,730
513 27,410 232,634 6,672 1,251,102
11,602
2,747 20,833 413,737
2,910 - 2,910
368,105
17,295 17,295
145,622
304,104
12,445 - 12,445
26,575 26,575
41,930 17,295 2,747 20,833 1,302,395
513 (14,520) 232,634 (10,623) (2,747) (20,833) (51,293)
75,000 55,000 2,006,118
(2,247,068)
13,750
209,000
75,000 55,000 (18,200)
513 60,480 232,634 44,377 (2,747) (20,833) (69,493)
14,300 (728,704) 401,017 160,313 (117,134) 3,565,021
$ 14,813 $ (668,224) $ 633,651 $ 204,690 $ (119,881) $ (20,833) $ 3,495,528
79
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2008
Statement 14
Page 4 of 4
Permanent
Fund
Foxborough
Environment Total
Fund 2008
Revenue:
General property taxes $ $ 863,173
Tax increments 540,336
Intergovernmental 487,234
Special assessments 464,933
Charges for services - 183,785
Investment earnings 4,271 279,613
Refunds and reimbursements 98
Miscellaneous 5,700 334,930
Total revenue 9,971 3,154,102
Expenditures:
Current:
General government 11,767
Public works 413,737
Parks, recreation and forestry - 185,718
Conservation of natural resources 4,770 4,770
Community development - 368,105
Capital outlay:
General government 17,295
Public safety 145,622
Public works 304,104
Parks, recreation and forestry 12,445
Debt service:
Principal 1,474,000
Interest and fiscal charges 810,960
Total expenditures 4,770 3,748,523
Revenue over (under) expenditures 5,201 (594,421)
Other financing sources (uses):
Transfer in 2,549,194
Transfer out (2,247,068)
Sale of property 13,750
Issuance of debt 209,000
Total other financing
sources (uses) 524,876
Net increase (decrease) in fund balance 5,201 (69,545)
Fund balance (deficit)
Beginning of year 117,023 7,425,046
Fund balance (deficit) - December 31 $ 122,224 $ 7,355,501
80
arra
mem
NEON
i
ailer
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUND - PROGRAM RECREATION
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2008
Statement 15
Revenue:
Charges for services:
Recreation Fees
Investment earnings
Total revenue
2008
Original Final
Budget Budget
168,460 $ 168,460
168,460 168,460
Actual
183,785
4,693
188,478
Variance with
Final Budget
Positive
(Negative)
15,325
4,693
20,018
Expenditures:
Current:
Personal services 100,030 100,030 91,784 8,246
Supplies 25,940 25,940 87,772 (61,832)
Other services and charges 1,575 1,575 337 1,238
Contractual services 13,160 13,160 2,915 10,245
Capital outlay 2,000 2,000 2,000
Total expenditures 142,705 142,705 182,808 (40,103)
Net increase (decrease) in fund balance
Fund balance - January 1
Fund balance - December 31
25,755 $ 25,755 5,670
102,876
$ 108,546
81
(20,085)
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
STA'T'EMENT OF CHANGES IN ASSETS AND LIABILITIES - FIDUCIARY FUNDS - AGENCY FUNDS
Year Ended December 31, 2008
Balance Balance
January I, December 31,
2008 Additions Deductions 2008
Assets
Cash and investments $ 1,048,783 $ - $ 214,899 $ 833,884
Deposits receivable 10,520 - 10,520
Total assets $ 1,059,303 $ - $ 214,899 $ 844,404
Liabilities
Accounts payable $ 31,301 $ - $ 27,039 $ 4,262
Deposits payable 1,028,002 187,860 840,142
Total Liabilities $ 1,059,303 $ $ 214,899 $ 844,404
82
SUPPLEMENTARY FINANCIAL INFORMATION
CITY OF LINO LAKES, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2008
General Obligation Bonds:
2005A Equipment Certificates
2006A Equipment Certificates
2007A Equipment Certificates
2008A Equipment Certificates
Civic Complex Lease Revenue Bonds, Series 1998A
Public Project Revenue Refunding Bonds, Series I999C
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% 2/1/05 12/31/08
4.00% 2/1/06 12/31 /09
4.00% 2/1/07 12/31/2010
4.00% 2/1/08 12/31/2011
4.20 % -5.35% 8/1/98 2/1/19
4.75%-5.10% 9/1/99 2/1/10
4.00 % -4.30% 8/15/06 2/1/23
4.00% -4.15% 8/15/06 2/1/17
4.00% 11/1/06 2/1/18
4.00 % - 4.125% 7/15/2007 2/1/2024
3.00 % -4.10% 8/1/02 2/1/13
3.20 % -5.55% 8/1/02 2/1/13
2.00 % - 4.25% 12/1/03 2/1/19
3.20 % -5.60% 12/1/03 2/1/14
1.90 % -4.45% 11/15/04 2/1/20
4.35 % -5.15% 11/1/05 2/1/21
3.75 % -5.00% 11/1/05 2/1/15
Revenue Bonds:
G. 0. Water Revenue Bonds of 1996B 4.10 % -5.70% 10/1/96 2/1/12
G. 0. Water Revenue Refunding Bonds of 1999B 4.25 % -4.90% 9/1/99 2/1/08
G. O. Water Utility Revenue Refunding Bonds of2006F 3.55 % - 3.625% 11/1/06 2/1/12
Total Revenue Bonds
Total City indebtedness
83
Exhibit 1
Prior Years
Original
Issue
Payments
Principal Interest
Payable 2008 Payable Due Due
1/1/08 Issued Payments 12/31/08 In 2009 In 2009
$ 107,000 $ 70,000 $ 37,000 $ - $ 37,000 $ $ $
307,000 90,000 217,000 107,000 110,000 110,000 4,950
160,000 - 160,000 - 50,000 110,000 55,000 4,950
- - 209,000 - 209,000 63,000 16,023
5,350,000 4,715,000 635,000 250,000 385,000 270,000 12,500
980,000 695,000 285,000 100,000 185,000 95,000 6,965
2,460,000 - 2,460,000 - - 2,460,000 - 103,420
570,000 570,000 - 50,000 520,000 50,000 20,123
2,990,000 2,990,000 - 2,990,000 119,600
4,215,000 4,215,000 4,215,000 165,000 166,226
17,139,000 5,570,000 11,569,000 209,000 594,000 11,184,000 808,000 454,757
645,000 400,000 245,000 110,000 135,000 25,000 4,893
2,110,000 720,000 1,390,000 200,000 1,190,000 215,000 57,613
2,090,000 1,320,000 770,000 55,000 715,000 55,000 26,300
250,000 50,000 200,000 25,000 175,000 25,000 8,490
1,330,000 140,000 1,190,000 75,000 1,115,000 75,000 40,186
5,550,000 195,000 5,355,000 275,000 5,080,000 285,000 249,110
3,755,000 385,000 3,370,000 415,000 2,955,000 420,000 118,813
15,730,000 3,210,000 12,520,000 1,155,000 11,365,000 1,100,000 505,405
3,320,000 3,320,000 - -
680,000 565,000 115,000 115,000 - -
1,740,000 1,740,000 210,000 1,530,000 360,000 48,611
5,740,000 3,885,000 1,855,000 325,000 1,530,000 360,000 48,611
$ 38,609,000 $ 12,665,000 $ 25,944,000 $ 209,000 $ 2,074,000 $ 24,079,000 $ 2,268,000 $ 1,008,773
84
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2008
Public
Lease Project G. 0.
Year of Equipment Equipment Equipment Equipment Revenue Refunding Improvement
Levy/ Certificates Certificates Certificates Certificates Bonds Bonds Bonds
Collection of 2005A of 2006A of 2007A of 2008A of 1998A 1999C of 2002A
2008/2009 $ - $ 120,698 $ 62,948 $ 82,974 $ 126,788 $ 104,570 $ 6,496
2009/2010 - 60,349 81,732 - - 5,446
2010/2011 - 80,808 9,645
2011/2012 - 8,385
2012/2013 -
2013/2014
2014/2015
2015/2016
2016/2017
2017/2018
2018/2019
2019/2020
2020/2021
2021/2022
2022/2023
2023/2024
$ - $ 120,698 $ 123,297 $ 245,514 $ 126,788 $ 104,570 $ 29,972
85
Exhibit 2
G.O. G. 0. G. 0. G. 0.
G. 0. Improvement G. 0. Improvement Tax CIP G. 0.
Improvement and Utility Improvement Refunding Abatement Refunding TIF
Bonds Bonds Bonds Bonds Bonds Bonds Bonds
of 2003B of 2004A of 2005A of 2005B 2006C 2006E 2007A
Total
- $ 20,741 $ 124,472 $ 569,084 $ 557,484 $ 108,591 $ 209,580 $ 351,253 $ 2,445,679
19,534 127,439 569,084 546,197 140,091 442,470 354,823 2,347,165
23,524 124,793 568,297 524,213 196,581 445,410 389,473 2,362,744
21,917 127,187 566,722 512,925 235,011 468,720 432,943 2,373,810
20,248 129,268 569,609 490,613 245,511 459,060 442,813 2,357,122
23,781 125,772 566,197 463,050 255,381 443,940 493,843 2,371,964
- 122,133 567,247 - 264,458 449,820 495,103 1,898,761
128,853 572,497 278,140 460,110 500,983 1,940,583
124,548 571,184 285,411 464,100 506,023 1,951,266
125,388 574,072 297,263 - 268,723 1,265,446
125,898 574,907 313,472 271,243 1,285,520
- 126,123 579,639 323,316 - 278,593 1,307,671
- 337,517 - 285,313 622,830
350,447 291,403 641,850
301,855 301,855
306,127 306,127
$ 129,745 $ 1,511,874 $ 6,848,539 $ 3,094,482 $ 3,631,190 $ 3,843,210 $ 5,970,514 $25,780,393
86
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS
December 31, 2008
G. O.
G. O. G. O. Improvement G. O.
Equipment Equipment Equipment Improvement Improvement Refunding Improvement
Certificates Certificates Certificates Bonds Bonds Bonds Bonds
2006A 2007A 2008A of2002A of2002B 2003A 2003B
Bonds payable $ 110,000 $ 110,000 $ 209,000 $ 135,000 $ 1,190,000 $ 715,000 $ 175,000
Future interest payable 4,950 7,425 24,823 14,198 167,060 167,571 29,903
Totals $ 114,950 $ 117,425 $ 233,823 $ 149,198 $ 1,357,060 $ 882,571 $ 204,903
Payments to maturity:
2009 $ 114,950 $ 59,950 $ 79,023 $ 29,893 $ 272,613 $ 81,301 $ 33,490
2010 - 57,475 77,840 28,930 271,388 79,611 32,315
2011 - 76,960 27,930 269,310 82,638 35,950
2012 31,830 271,395 80,537 34,390
2013 30,615 272,354 78,438 32,778
2014 - - 81,088 35,980
2015 78,488
2016 - 80,788
2017 77,988
2018 79,994
2019 81,700
2020 -
2021
2022
2023
2024
$ 114,950 $ 117,425 $ 233,823 $ 149,198 $ 1,357,060 $ 882,571 $ 204,903
87
PIMED
Exhibit 3
G. O. G. O. G.O. G.O. G.O.
Improvement G. 0. Improvement Tax Utility CIP G.O.
and Utility Improvement Refunding Abatement Revenue Refunding TIF
Bonds Bonds Bonds Bonds Bonds Bonds Bonds
2004A 2005A 2005B 2006C 2006D 2006E 2007A
$ 1,115,000 $ 5,080,000 $ 2,955,000 $ 2,460,000 $ 520,000 $ 2,990,000 $4,215,000
281,532 1,855,546 475,470 1,049,992 101,941 730,000 1,386,433
$ 1,396,532 $ 6,935,546 $ 3,430,470 $ 3,509,992 $ 621,941 $ 3,720,000 $5,601,433
$ 115,187 $ 534,111 $ 538,813 $ 103,420 $ 70,122 $ 119,600 $ 331,226
112,900 534,486 523,063 103,420 68,122 198,000 334,426
120,420 534,111 512,219 132,820 66,122 415,300 366,626
117,700 532,986 491,375 185,520 69,022 417,800 407,026
- 114,810 531,111 477,875 221,320 71,722 439,300 416,026
116,702 533,361 456,625 231,020 69,292 430,000 463,426
118,182 529,736 430,500 240,043 66,832 415,600 464,326
_ 114,382 530,236 - 248,381 69,254 420,800 469,526
115,482 534,611 260,858 71,453 430,100 473,926
116,382 532,861 267,464 - 433,500 252,126
117,013 534,633 - 278,327 254,326
117,372 534,784 293,233 261,026
538,519 302,183 267,126
- 315,103 272,504
326,880 282,016
- 285,775
$ 1,396,532 $ 6,935,546 $ 3,430,470 $ 3,509,992 $ 621,941 $ 3,720,000 $5,601,433
CITY OF LINO LAKES, MINNESOTA Exhibit 3 (Continued)
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS (CONTINUED)
December 31, 2008
G.O. Water
Civic Public Utility
Complex Project Revenue
Revenue Revenue Refunding
Bonds Bonds Bonds
of 1998A of 1999C of 2006F Totals
Bonds payable $ 385,000 $ 185,000 $ 1,530,000 $ 24,079,000
Future interest payable 25,000 9,259 113,127 6,444,230
Totals $ 410,000 $ 194,259 $ 1,643,127 $ 30,523,230
Payments to maturity:
2009 $ 289,250 $ 101,964 $ 408,612 $ 3,283,525
2010 120,750 92,295 410,472 3,045,493
2011 411,702 3,052,108
2012 412,341 3,051,922
2013 2,686,349
2014 - 2,417,494
2015 - - 2,343,707
2016 - - - 1,933,367
2017 1,964,418
2018 - - 1,682,327
2019 1,265,999
2020 - 1,206,415
2021 1,107,828
2022 - 587,607
2023 - 608,896
2024 - 285,775
$ 410,000 $ 194,259 $ 1,643,127 $ 30,523,230
CITY OF LINO LAKES, MINNESOTA
INSURANCE IN FORCE
.— December 31, 2008
Exhibit 4
Coverage Amount
General Liability:
Bodily Injury/Property Damage $ 1,200,000
Personal Injury/Police Professional Liability 1,200,000
Fire Legal Liability 50,000
Medical Expense Occurrence Limit 1,000
Medical Expense Aggregate 10,000
Property Damage ($500 Deductible)
Property:
Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers) 26,244,891
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) 1,200,000
Automotive:
Bodily injury and property damage 1,200,000
Comprehensive and Collision Actual Cash Value
Uninsured motorists 200,000
Workmen's compensation Statutory
Umbrella Liability 1,000,000
Crime - Theft Disappearance and Destruction ($500 Deductible) 250,000
Inas
90
CITY OF LINO LAKES, MINNESOTA Exhibit 5
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES
Tax Capacity Tax Capacity
Values Values
2007/2008 2006/2007
Taxable valuations:
Total $ 22,092,854 $ 20,974,940
Fiscal disparities:
Distribution 2,475,798 2,204,262
Contribution (1,282,009) (1,172,916)
Less: Captured Tax Increment Value (532,660) (428,590)
$ 22,753,983 $ 21,577,696
Tax Tax
Certified Capacity Certified Capacity
Levy Rate Levy Rate
Taxes Levied:
Revenue $ 7,973,236 34.560 $ 7,558,995 34.356
Bond and Interest 893,720 4.407 897,333 4.638
Totals $ 8,866,956 38.967 $ 8,456,328 38.994
The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution
91
III.
STATISTICAL
SECTION
Statistical Section (Unaudited)
This part of the Comprehensive Annual Financial Report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about overall financial health. The following are the
categories of the various schedules that are included in this section.
Financial Trends Tables 1 -4
These schedules contain trend information to help the reader understand how the City's financial
performance and well -being have changed over time.
Revenue Capacity Tables 5 -8
These schedules contain information to help the reader assess the City's most significant revenue
sources.
Debt Capacity Tables 9 -11
These schedules present information to help the reader assess the affordability of the City's
current levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information Tables 12 -13
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City's financial activities take place.
Operating information Tables 14 -16
These schedules contain service and infrastructure data to help the reader understand how the
information the City's financial report relates to the services the City provides and the activities
it performs.
CITY OF LINO LAKES, MINNESOTA
NET ASSETS BY COMPONENT,
LAST SIX FISCAL YEARS
(accrual basis of accounting)
Table 1
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Unrestricted
Total business -type activities net assets
Primary Government
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total primary govemment net assets
Note: The City began to report accrual in
Fiscal Year
2003
$ 25,993,905
3,568, 555
15, 668, 226
$ 45,230,686
2004
$ 28,807,262
3,045,052
16,249,541
2005
$ 25,460,528
12,050,484
13,577,071
2006
$ 29,549,174
10,704,508
14,516,466
2007
$ 36,789,153
10, 324,467
6,339,528
2008
$ 28,472,865
9,870,676
10,790,359
y$ 48,101,855 $ 51,088,083 $ 54,770,148 .$ 53,453,148. $ 49 133,900.
$ 25,537,383 $ 26,713,498 $ 28,342,832 $ 29,485,942 $ 29,836,775 $ 30,372,670
3,778,936 4,744,875 5,572,338 6,880,547 8,063,983 9,028,778
$ 29,316,319 $ 31,458,373 $ 33,915,170 $ 36,366,489 $ 37,900,758 $ 39,401,448
$ 51,531,288
3,568,555
19,447,162
$ 55,520,760
3,045,052
20,994,416
$ 53,803,360
12,050,484
19,149,409
$ 59,035,116 $ 66,625,928
10, 704, 508 10, 324, 467
21, 397, 013 14, 403, 511
$ 58,845,535
9,870,676
19,819,137
$ 74,547,005 $ 79,560,228 $ 85,003,253 $ 91,136,637 $ 91,353,906 $ 88,535,3.48
ation when it implemented GASB 34 in fiscal year 2003.
92
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET ASSETS,
LAST SIX FISCAL YEARS
(accrual basis of accounting)
Table 2
Expenses
Governmental activities:
General Govemment
Public Safety
Public Services
Parks, Recreation and Forestry
Conservation of Natural Resources
Community Development
Interest on long -term debt
Total govemmental activities expenses
Business -type activities:
Water
Sewer
Total business -type activities
Total primary govemment expenses
Program Revenues
Governmental activities:
Charges for services:
General Govemment
Public Safety
Public Works
Parks, Recreation and Forestry
Conservation of Natural Resources
Community Development
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Water
Sewer
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
Net (Expense)IRevenue
Govemmental activities
Business -type activities
Total primary government net expense
Fiscal Year
2003
$ 6,092,587
2,648,944
1,162,412
932,113
111,946
859,110
815,681
$ 12,622,793
$ 968,458
1,046,170
2,014,628
$ 14,637,421
2004
$ 2,524,387
2,799,294
7,254,708
1,196,096
116,869
420,874
748,832
$ 15,061,060
$ 914,039
1,130,994
2,045,033
$ 17,106,093
2005
$ 2,941,279
3,091,174
9,187,436
799,335
150,092
383,211
797,341
$ 17,349,868
2006
$ 2,886,825
3,516,376
3,871,968
1,162,458
156,592
691,880
926,021
$ 13,212,120
$ 876,592
1,217,825
2,094,417
$ 19,444,285
$ 102,520
964,034
493,312
250,816
5,369
28,210
633,691
4,536,567
$ 7,014,519
$ 122,861
1,049,858
454,191
242,857
11,763
28,952
677,079
7,515,238
$ 10,102,799
$ 1,064,326 $ 979,075
1,216, 589 1,280,652
2,719, 081 1,589,419
4,999,996 3,849,146
$ 12,014,515 $ 13,951,945
2007
$ 2,197,672
3,730,504
10,580,560
1,357,133
183,420
1,122,802
980,849
$ 20,152,940
2008
$ 2,323,358
4,051,162
7,608,626
919,948
184,624
1,114,158
1,045,781
$ 17,247,657
$ 976,575 $ 1,170,902 $ 1,020,770
1,228,123 1,298,963 1,287, 943
2,204,698 2,469,865 2,308,713
$ 15,416,818 $ 22,622,805 $ 19,556,370
$ 111,480
998,210
434,087
196,951
4,873
26,985
761,924
10,128, 024
$ 12,662,534
$ 1,031,175
1,361,759
1,733,775
4,126,709
$ 16,789,243
$ 88,924
844,514
420,741
188,439
6,854
20,530
643,749
5,963,204
$ 8,176,955
$ 91,646
1,078,995
389,489
185,803
4,559
15,839
851,791
7,189, 346
$ 9,807,468
$ 1,175,172 $ 1,215,763
1,391,702 1,446,112
1,535,631 80,750
4,102,505 2,742,625
$ 12,279,460 $ 12,550,093
$ 79,844
1,296,418
413,040
187,285
3,660
11,623
693,065
1,094,789
$ 3,779,724
$ 1,058,493
1,472,093
10,117
2,540,703
$ 6,320,427
$ (5,608,274) $ (4,958,261) $ (4,687,334) $ (5,035,165) $ (10,345,472) $ (13,467,933)
2,985,368 1,804,113 2,032,292 1,897,807 272,760 231,990
$ (2,622,906) $ (3,154,148) $ (2,655,042) $ (3,137,358) $ (10,072,712) $ (13,235,943)
93
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET ASSETS,
LAST SIX FISCAL YEARS (Continued)
(accrual basis of accounting)
Table 2 (Continued)
Fiscal Year
2003 2004 2005 2006
General Revenues and Other Changes in Net Assets
Govemmental activities:
Property taxes
Unrestricted grants and contributions
Unrestricted investment eamings
Gain on sale of capital assets
Miscellaneous
Transfers
Total govemmental activities
Business -type activities:
Unrestricted investment earnings
Transfers
Total business -type activities
Total primary govemment
Change in Net Assets
Govemmental activities
Business -type activities
Total primary government change in net assets
2007
6,847,470 $ 6,630,279 $ 7,383,415 $ 8,269,944 $
194,220 221,302 433,387 713,794
1,280,957 33,217
160,955
(301,355) (303,108) (304,195) (299,725)
6,740,335 $ 7,829,430 $ 7 673,562 $ 8,717,230 $
20,866 $ 34,833 $ 120,310 $ 253,787
301,355 303,108 304,195 299,725
322,221 337,941 424,505 553,512
7062,556 $ 8,167,371 $ 8,098,067 $ 9,270,742
8,785,280
256,877
864,578
17,424
(895,687)
9,028,472
$ 365,822
895,687
1,261,509
$ 10 289 981
2008
$ 9,424,697
129,607
576,071
12,512
(994,202)
$ 9148,685
$ 274,498
994,202
1,268,700
$ 10,417,385
$ 1,132,061 $ 2,871,169 $ 2,986,228 $ 3,682,065 $ (1,317,000) $ (4,319,248)
3,307,589 2,142,054 2,456,797 2,451,319 1,534,269 1,500,690
$ 4,439,650 $ 5,013 223 $ 5,443,025 $ 6,133,384 $ 217,269 $ (2,818,558)
94
CITY OF LINO LAKES, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
General Fund
Reserved
Unreserved
Total general fund
All Other Governmental Funds
Reserved reported in:
Special Revenue Funds
Capital Projects Funds
Debt Service Funds
Permanent Funds
Unreserved reported in:
Special Revenue Funds
Capital Projects Funds
Debt Service Funds
Permanent Funds
Total all other governmental funds
Fiscal Year
1999
$ 115,359
3,319,115
$ 3,434,474
989,506
3,824,337
33,961
4,340,900
(6,234)
2000
$ 105,052
3,436, 544
$ 3,541,596
$ 1,017
1,572,422
4,101,453
49,232
4,990,610
(28,568)
2001
2002
$ 105,969 $ 120,727
3,818,700 4,232,291
$ 3,924,669 $ 4,353,018
$ 1,551
1,843,423
1,768,402
41,195
6,242,862
(41,953)
$ 2,430
1,946,617
1,818,859
25,200
6,317,650
(612,943)
$ 9,182,470 $ 10,686,166 $ 9,855,480 $ 9,497,813
Total all funds $ 12,616,944 $ 14,227,762 $ 13,780,149 $ 13,850,831
95
IIIMW
Table 3
Fiscal Year
2003
2004
2005
2006
2007
2008
$ 133,921 $ 142,492 $ 148,652 $ 153,009 $ 181,759 $ 190,825
4,775,969 5,067,973 5,300,156 5,337,225 5,356,272 5,393,316
$ 4,909,890 $ 5,210,465 $ 5,448,808 $ 5,490,234 $ 5,538,031 $ 5,584,141
$ 1,759 $ 1,718 $ 1,763 $ 1,813 $ 226,921 $ 226,973
1,946,618 957,112 957,112 957,112 885,825 812,400
2,482,184 2,556,300 7,371,359 3,992,952 3,925,402 3,405,272
- - 100,000 100,000 100,000 100,000
32,704 57,616 74,716 82,385 100,955 106,573
5,406,014 6,241,408 7,348,375 5,525,508 8,395,827 5,927,411
675,409 452,972 - - - -
- - 853 5,378 17,023 22,224
$ 10,544,688 $ 10,267,126 $ 15,854,178 $ 10,665,148 $ 13,651,953 $ 10,600,853
$ 15,454,578 $ 15,477,591 $ 21,302,986 $ 16,155,382 $ 19,189,984 $ 16,184,994
CITY OF LINO LAKES, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
1999 2000 2001 2002
Revenues
Property Taxes $ 4,571,934 $ 5,213,896 $ 5,856,349 $ 6,243,200
Licenses and Permits 823,719 884,746 1,016,456 913,498
Intergovernmental 1,047,725 802,456 2,101,953 858,816
Special Assessments 2,519,598 3,106,359 1,783,237 2,050,015
Charges for Services 562,359 618,295 684,264 611,414
Fines and Forfeits 87,434 124,458 101,559 100,393
Investment Earnings 230,921 930,177 571,248 447,182
Miscellaneous 472,609 685,621 699,020 710,513
Total revenues 10,316,299 12,366,008 12,814,086 11,935,031
Expenditures
Current:
General Government 2,644,205 3,145,791 2,652,762 2,893,683
Public Safety 1,951,820 2,126,696 2,212,932 2,463,004
Public Works 627,925 838,789 1,134,874 1,245,451
Parks, Recreation and Forestry 755,215 828,852 914,432 952,039
Conservation of Natural Resources 218,981 106,543 139,599 111,880
Community Development - -
Capital outlay 1,576,616 617,345 992,339 1,057,099
Debt Service
Principal 1,190,734 1,448,570 2,097,050 2,851,332
Interest and fiscal charges 1,076,079 1,041,882 960,281 1,030,395
Construction /Acquisition 8,775,128 725,663 501,810 1,833,592
Total expenditures 18,816,703 10,880,131 11,606,079 14,438,475
Excess (deficiency) of revenues
over expenditures (8,500,404) 1,485,877 1,208,007 (2,503,444)
Other Financing Sources (Uses)
Sale of Property - -
Proceeds from Issuance of Debt 3,600,539 325,450 332,030 2,878,201
Premium on Bonds Issued - -
Discount on Bonds Issued
Payment to Refunded Bond Escrow Agent (961,098) (1,680,000) -
Transfer In 948,297 526,843 412,239 851,472
Transfer Out (997,663) (847,352) (719,889) (1,155,547)
Total other financing sources (uses) 2,590,075 4,941 (1,655,620) 2,574,126
Net change in fund balances $ (5,910,329) $ 1,490,818 $ (447,613) $ 70,682
Debt service as a percentage of
noncapital expenditures 26.8% 26.1% 30.2% 33.6%
97
Table 4
Fiscal Year
2003 2004 2005
2006
$ 6,687,516 $ 6,523,938 $ 7,230,287 $
766,524 867,909 812,172
2,011,285 2,419,531 1,808,111
2,812, 386 1,587, 510 1,769,821
658,370 639,565 601,548
97,223 106,053 100,980
194,049 221,303 433,385
- 677,823 782,179 948,009
13,905,176 13,147,988 13,704,313
5,808,015
2,609,171
1,770,649
969,597
114,580
622,218
1,684,450
865,638
229,321
14,673,639
(768,463)
2,261,908
2,798,013
5,126, 578
954,945
115,631
515,287
1,960, 000
798,405
14, 530, 767
(1,382,779)
1,280,957
2,673,565 1,604,000
1,120,223
(1,421,578)
2,372,210
(6,057)
(1,170, 000)
5,283,306
(5,586,414)
1,405,792
2,701,731
3,099,032
7,071, 322
1,111,301
140,334
8,103,263
581,582
1,818,519
2,901,100
687,551
101,518
713,795
716,692
15,624,020
2,614,303
3,314,159
7,755,727
1,076,727
143,653
683,036
464,553 835,770
2,016,000 2,155,000
838,950 1,011,157
17,443, 223 19, 589, 532
(3,738,910) (3,965,512)
280,269
9,412,000
176,231
2,651,469
(2,955,664)
9,564,305
$ 1,603,747 $ 23,013 $ 5,825,395
18.4%
19.7%
28,818
6,327,000
450
(13,635)
(7,225,000)
5,811,452
(6,111,177)
(1,182, 092)
2007
$ 8,529,846
694,435
6,143,689
1,961,253
753,698
139,932
864,578
889,901
19, 977, 332
2008
$ 9,095,085
802,135
1,004,476
950,188
872,534
133,531
576,071
516,415
13,950,435
1,953,960 2,058,267
3,513,460 3,806,389
8,446,911 5,542,308
1,103,021 1,033,260
183,346 183,024
1,107, 328 1,113,232
2,008,073 585,875
1,973,000 1,749,000
937,895 1,074,052
21,226,994 17,145,407
(1,249,662) (3,194,972)
54,037 13,750
4,375,000 209,000
(25,798) -
2,900,249 4,763,391
(3,019,224) (4,796,159)
4,284,264 189,982
$ (5,147,604) $ 3,034,602
16.8% 25.0%
$ (3,004,990)
15.1% 17.4%
CITY OF LINO LAKES, MINNESOTA
ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY,
LAST TEN FISCAL YEARS
Payable
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Residential
Property
Commercial/
Industrial
Property
$ 8,560,188 $
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
1,089,469
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
Source: Anoka County, Minnesota Assessors' Office
Personal
Property
$ 393,365
395,637
393,728
246,594
251,016
259,194
274,956
271,665
288,290
279,102
Total Taxable
Assessed
Value
$ 10,043,022
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
Note: The tax capacity (assessed taxable value) of the property is calculated by applying a
99
Table 5
Total Direct
Tax Rate
36.04
35.96
35.90
53.08
47.60
42.29
42.22
41.40
38.99
38.97
CITY OF LINO LAKES, MINNESOTA
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $100 of Tax Capacity)
Table 6
City Direct Rate Overlapping Rates
Centennial Total Direct
General School Other and
Obligation Redevelopment Total District ISD # Anoka Taxing Total Overlapping
Fiscal Year Basic Rate Debt Service Debt Service Direct 12 County Districts Overlapping Tax Rate
1999 $ 28.503 $ 7.536 $ 36.039 $ 64.802 $ 32.265 $ 6.830 $ 103.897 $ 139.936
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 42.223 37.486 33.080 6.696 77.262 119.485
2006 36.044 5.354 41.398 40.253 32.096 6.479 78.828 120.226
2007 34.356 4.638 38.994 38.090 30.696 5.578 74.364 113.358
2008 34.560 4.407 38.967 35.258 31.078 6.956 73.292 112.259
Source: Anoka County Property Records and Tax Division
Notes:
The majority of Lino Lakes is served by Independent School District No. 12.
Rates for debt service are based on each year's requirements.
100
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS,
CURRENT YEAR AND NINE YEARS AGO
Taxpayer
2008
Table 7
1999
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 $ 278,554 1 1.22 % $ - %
Lino Lakes Realty LLC 265694 2 1.17
XmelEnargy 143.459 3 0.63 209.064 1 2.03
KohI's Department Store 140.306 4 0.62 - -
Moline Concrete Products 131.986 5 0.58 33,212 10 0.32
Taylor Corporation 129.508 6 0.57 155,117 2 1.50
Legacy Holdings LLC 122,134 7 0.54 - -
Gargaro Properties LLC 100.390 8 0.44 104.384 3 1.01
Lino Lakes Business Center 96.204 9 0.42 39,333 9 0.38
F&G Incorporated 94,476 10 0.42 78,435 4 0.76
Minnegasco, Inc. - - 80.876 5 0.59
Anoka Electric Cooperative 60.412 6 0.59
Northern Development LLC 59.189 7 0.57
No|'TooSystamo - 44.006 8 0.43
Total $ 1.502721 6.60 % $ 844.618 8.19 %
Source: Anoka County
101
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
Collected within the
Fiscal Year of Levy
Amount
Percentage
of
Levy
1999 $ 3,255,587 $ 860,725 $ 4,116,312 $ 4,085,625 99.3%
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 5,1 80,932 943,689 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 6,881,838 947%
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%
Notes:
Current year levies and collections include State levy related credits (HACA and Market Value Credit).
Does not include tax increment levies and collections.
102
Collections in
Subsequent
Years
Total Collections to Date
Amount
Table 8
Percentage Outstanding Percentage
of Delinquent of Levy
Levy Taxes Outstanding
21,163 $ 4,106,788 99.8% 9,524 0.2%
42,227 4,577,225 100.1% (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 6,148,222 100.4% (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%
8,324,180 98.4% 132,148 1.6%
- 8,581,974 96.8% 284,982 3.2%
103
CITY OF LINO LAKES, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Business -Type
Governmental Activities Activities
General
General Special Other Obligation
Fiscal Obligation Assessments Long -Term Revenue
Year Bonds Payable Debt Bonds
1999 $ 6,904,570 $ 14,045,000 $ 1,459,352 $ 4,550,000
2000 6,911,450 13,165,000 1,209,352 4,340,000
2001 6,686,430 10,195,000 959,352 3,465,000
2002 6,244,450 11,640,000 - 3,220,000
2003 6,030,000 12,840,000 2,970,000
2004 5,764,000 11, 580, 000 2,705,000
2005 5,335,000 19,405,000 2,425,000
2006 7,177,000 13,940,000 - 4,410,000
2007 11, 569,000 12, 520, 000 1,855,000
2008 11,184, 000 11, 365, 000 1,530,000
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.
104
Table 9
UMW
UMW
Total Percentage
Primary of Personal Per
—
Government Income Capita
$ 26, 958, 922 5.96 % $ 1,711
25,625,802 4.96 1,526
21, 305, 782 3.94 1,225
— 21,104,450 3.69 1,176
21, 840, 000 3.64 1,189
20, 049,000 3.13 1,071
—
27,165, 000 3.95 1,379
25,527,000 3.63 1,293
25, 944, 000 3.48 1,307
24, 079, 000 2.81 1,204
105
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
As of December 31, 2008
Table 10
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable Debt
Overlapping:
Anoka County $ 143,551,354 6.5% $ 9,362,876
ISD 12 99,690,000 48.8% 48,603,522
ISD 624 115,250,000 3.6% 4,186,622
ISD 831 34,010,000 7.9% 2,684,071
SISD 916 9,710,000 3.2% 308,772
Metropolitan Council 199,580,000 0.7% 1,305,357
Anoka County Railroad Authority 39,710,000 6.5% 2,595,569
Total Overlapping 69,046,789
City of Lino Lakes Direct Debt 3,989,000 100% 3,989,000
Total Direct and Overlapping Debt: 73,035,789
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.
106
CITY OF LINO LAKES, MINNESOTA
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
1999 2000 2001 2002
Debt limit $ 13,754,748 $ 15,507,964 $ 18,073,714 $ 20,688,642
Total net debt applicable to limit 5,894,844 5,976,450 5,836,430 5,479,450
Legal debt margin $ 7,859,904 $ 9,531,514 $ 12,237,284 $ 15,209,192
Total net debt applicable to the limit
as a percentage of debt limit 42.86% 38.54% 32.29% 26.49%
107
WEEP
INIEN
Table 11
Legal Debt Margin Calculation for Fiscal Year 2008
$ 2,021,961,000
60,658,830
3,804,000
$ 56,854,830
Market value
Debt limit (3% of market value)
Debt applicable to limit
Legal debt margin
Fiscal Year
2003 2004 2005 2006 2007 2008
$ 25,024,436 $ 28,616,070 $ 30,698,674 $ 34,686,356 $ 38,556,150 $ 60,658,830
5,350,000 5,169,000 4,845,000 4,332,000 4,039,000 3,804,000
$ 19,674,436 $ 23,447,070 $ 25,853,674 $ 30,354,356 $ 34,517,150 $ 56,854,830
21.38% 18.06%
15.78% 12.49% 10.48% 6.27%
108
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
1999 15,760 $ 452,407 $ 28,706 6,732 2.5
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 20,000 855,440 42,772 6,754 6.9
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
Ammo
maim
Await
109 ...
Imo
wmw
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL EMPLOYERS,
CURRENT YEAR AND NINE YEARS AGO
Employer
State of Minnesota Corrections
AdGraphics
Target Corporation
Synovis Interventional Systems
Anoka County Juvenile Center
Molin Concrete Products
Rehbein Transit, Inc.
Nol -Tech Systems, Inc.
Custom Manufacturing
Jer -Neen Manufacturing
▪ Custom Remodelers
Northern Wholesale
Mag -Con, Inc.
Total
(2)
2008
(1)
Percentage
of Total
Employees Rank Employment
600 1
260 2
240 3
160 4
160 5
135 6
130 7
70 8
60 9
1,815
N/A %
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Table 13
1999
(1)
Percentage
of Total
Employees Rank Employment
400 1
250 2
175 3
70 5
40 9
50 8
160 4
70 5
60 7
20 10
1,295
Source: City of Lino Lakes Official Statements
N/A %
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
- %
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.
110
CITY OF LINO LAKES, MINNESOTA
Full-time-Equivalent Employees by Type
Last Ten Fiscal Years
1999 2000 2001 2002 2003
General Government
Administration 5.00 5.00 5.00 5.00 5.00
Seniors 0.63 0.63 0.63 0.63 0.63
Finance 2.50 2.75 3.50 3.50 3.50
Economic Development 2.00 3.00 1.75 1.75 1.00
Planning 2.00 2.00 2.00 2.00 2.00
Community Development - 2.00 2.00 2.00
Engineering 0.50
Building 1.00 1.00 1.00 1.00
Other 0.55 0.55 0.55 0.55 0.55
Total General Government 13.18 14.93 16.43 16.43 15.68
Public Safety
Officers 19.50 21.00 21.00 22.00 22.00
Civilians 4.00 4.00 4.00 4.00 4.00
Building Inspection 2.50 3.00 3.00 4.00 4.00
Total Public Safety 26.00 28.00 28.00 30.00 30.00
Public Works
Streets 5.00 5.35 5.85 5.85 5.85
Other 1.00 1.15 1.15 1.15 1.15
Total Public Works 6.00 6.50 7.00 7.00 7.00
Parks, Recreation and Forestry 9.05 9.15 9.15 9.15 9.15
Water 1.95 1.80 2.15 2.15 2.15
Sewer 1.95 1.80 2.15 2.15 2.15
Total 58.13 62.18 64.88 66.88 66.13
Source: City Finance Office
MEP
Table 14
2004 2005 2006 2007 2008
5.00 5.00 5.00 5.00 5.00
0.63 0.63 0.63 0.63 0.63
3.50 3.50 3.50 3.50 3.50
1.00 1.00 1.00 1.00 1.00
- 2.00 2.00 2.00 2.00 2.00
2.00 2.75 2.75 2.75 2.75
- 1.00 1.00 1.00 1.00 1.00
0.55 1.15 1.15 1.40 1.40
15.68 17.03 17.03 17.28 17.28
22.00 25.00 26.00 26.00 27.00
4.00 4.75 4.75 4.75 4.75
4.00 4.25 4.25 4.25 4.25
30.00 34.00 35.00 35.00 36.00
5.85 6.35 6.85 7.35 7.35
1.15 1.15 1.15 1.15 1.15
7.00 7.50 8.00 8.50 8.50
9.15 9.05 9.55 9.80 9.80
2.15 2.15 2.15 2.15 2.15
2.15 2.15 2.15 2.15 2.15
66.13 71.88 73.88 74.88 75.88
112
CITY OF LINO LAKES, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Years
Function/Program
Fiscal Year
1999 2000 2001 2002
General Government
Elections 1 2 1 2
Registered voters 8,435 10,125 9,349 9,423
Number of votes cast 2,952 8.073 3.089 8.291
Voter participation (registered) 35.0% 79.7Y6 33.096 88.0%
Public Safety
Police
CaIIs for Service 5,828 6,218 6.569 7,318
Traffic Citations & Warnings 2,258 2.548 2,333 2.611
Part 1 Crimes 254 307 343 404
Part UCrimes 791 946 1.120 1.259
Inspections
Bullding Permits (1) 893 1,186 1.042 860
Inspections N/A N/A N/A N/A
Value of Building Permits $54.522.159 $57.080.794 o74'974.042 $53.977.610
Public Works
General Maintenance (hours) N/A N/A N/A N/A
Street Maintenance (hours) N/A N/A N/A N/A
Fleet Maintenance (hours) N/A N/A N/A N/A
Sriow Plowing/Sanding (hours) N/A N/A N/A N/A
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 Departments
Notes:
Information not available is labeled N/A,
(1) 1,565 and 4,337 repair permits issued in 2007 and 2008, respectively, due to storm damage.
1 ]3
Table 15
Fiscal Year
2003 2004 2005 2006 2007 2008
1 2 1 2 1 2
9,911 11,718 11,035 11f18 10,908 12,723
4,650 10,147 5,288 8,284 2,337 11.051
7,668 7,538 7766 7,418 7,208 7,318
2,564 3,258 3.631 5'958 3.796 3.304
370 316 257 292 250 305
1.004 644 591 649 671 1,191
826 835 837 886 2,297 5,041
N/A N/A N/A N/A N/A N/A
$55,864,076 $61,579,910 $53,686,592 $42,078,007 $30,539,559 $15,852,780
2,650 3,263 6,014 5,692 6,758 6.129
4.082 3,533 3.106 3,631 2,916 3,851
3.780 3.804 4/440 4,460 4,144 5,043
1.020 855 1.003 867 1,425 1,353
N/A 10,210 10,577 10,368 10,939 11,136
N/A
N/A
4,349
3,347
3,904 4,387
4,092 3,347
l\4
4,256 5,716
4,148 3,760
CITY OF LINO LAKES, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION /PROGRAM
Last Ten Years
Function /Program
Fiscal Year
1999 2000 2001 2002
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
Public Works
Lights 397 397 405 486
Vehicles 27 27 27 28
City Streets (miles) 85.6 90.3 91.9 93.2
Culture and Recreation
Parks
Parks 17 17 17 18
Park Acres 133 133 133 138
Trails (miles) 14 14 14 14
Park Shelters 3 3 3 4
Basketball Courts 4 4 4 5
Fishing Pier 1 1 1 1
Skating Rinks 5 4 4 4
Soccer Fields 8 8 8 8
Baseball /Softball Fields 18 18 18 18
Tennis Courts 2 2 2 2
Playgrounds 14 15 15 16
Water
Distribution System (miles) 37.5 40.0 42.5 42.5
Water Connections 2,655 2,922 3,263 3,433
Gallons Pumped (millions) 293 373 407 358
Number of Fire Hydrants 326 357 398 409
Water Tower Capacity (millions gallons) 2 2 2 2
Sanitary Sewer
Collection System (miles)
Sewer Connections
47.5
2,846
49.8
3,104
51.3 51.3
3,343 3,636
Storm Sewer
Pipe (miles) 21.8 25.6 28.1 29.8
Source: Various City Departments
Now
Table 16
Fiscal Year
2003 2004 2005 2006 2007 2008
1 1 1 1 1 1
9 10 11 12 12 12
1 1 1 1 1 1
4 4 4 5 5 5
489 489 559 673 673 673
28 29 29 29 29 29
93.8 94.3 95.5 96.0 96.1 96.1
19 19 18 18 18 18
142 142 141 141 141 141
18 18 19 20 29 29
4 5 5 7 7 7
6 6 6 6 6 6
_ 1 1 1 1 1 1
4 4 4 4 4 4
8 8 8 8 8 8
18 18 18 20 20 20
2 2 2 2 2 2
17 17 17 16 16 16
Vamo
46.2 48.2 50.8 51.1 51.5 51.5
3,548 3,738 3,957 4,090 4,112 4,247
518 474 475 565 595 590
452 490 523 558 558 558
2 2 2 2 2 2
59.2 61.4 63.5 63.3 64.5 64.5
3,763 3,960 4,142 4,282 4,428 4,447
31.3 31.9 33.1 34.1 34.3 34.3