HomeMy WebLinkAbout06/01/2009 Council PacketWORK SESSION AGENDA
CITY OF LINO LAKES
Monday, June 1, 2009
CITY COUNCIL WORK SESSION
Community Room (not televised)
5:30 P.M.
1. EDAC Update — Economic Development Plan/One -Year Action Plan
2. Charter Commission Audit
3. Annual Financial Audit
4. Pine Street Paving
Review Regular Agenda
Adjourn
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WS — Item 1
WORK SESSION STAFF REPORT
Work Session Item 1
Date: June 1, 2009
To: City Council
From: Mary Alice Divine
Re: EDAC Plan and Special Meeting
Background
The Economic Development Advisory Committee (EDAC) has completed an update of
its Five -Year Plan and its One -Year Action Plan.
As part of the Economic Development Advisory Committee's original work program,
EDAC had an objective to develop a Strategic Plan and update it once every five years.
This plan is a broad based outline of goals and objectives for furthering economic
development. From this Strategic Plan, they develop a One -Year Action Plan more
specific to projects and programs to meet economic development goals and objectives.
One of the economic development goals in the draft Comprehensive Plan is to have
EDAC continue this work program. EDAC last reviewed the Strategic Plan in 2005, and
concluded that in light of the economic development goals and objectives in the draft
Comprehensive Plan that it would be appropriate to review the Strategic Plan before
updating the One -Year Action Plan to ensure EDAC's goals are in line with the Comp
Plan goals.
Included in your packet are the drafts of the updated 2010 -2015 Strategic Plan and the
2009 -2010 Action Plan. EDAC is asking the City Council to consider these plans and
approve them as an indication of the continued validity of EDAC's goals and objectives.
In addition, one of the city council goals for 2008 -2009 included expanding and
enhancing the city's tax base. Two of the action steps to accomplish that goal were to
meet jointly with EDAC to clearly define council's economic development objectives
and EDAC's role in meeting those objectives; and establishing a communication
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procedure so EDAC can better understand the correlation between EDAC
recommendations and council's economic development decisions.
Requested Council Direction
Staff is requesting that council consult their calendars and determine if they would like to
set up a date for a joint council/EDAC meeting to discuss economic development policy,
goals and issues. In addition, determine if the council would prefer to have that meeting
before staff puts the EDAC draft plans on the agenda for council approval.
Attachment(s)
1. EDAC Five -Year Strategic Plan
2. EDAC One -Year Action Plan
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Lino Lakes Fconomic Development Plan
2010 -2015
O!Yi>1 N7 Of tAYLO4 COBPOitA #c
Lino Lakes
Economic Development
Advisory Committee
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CITY OF LINO LAKES
FIVE YEAR ECONOMIC DEVELOPMENT PLAN
2010 -2015
BACKGROUND
In 1992 the City of Lino Lakes adopted an Economic Development Plan and established
the Economic Development Authority Advisory Board (EDAAB). Its mission was to 1)
actively promote the development of quality commercial, retail and light industrial
businesses within the City of Lino Lakes, and 2) maintain and encourage the growth of
existing businesses within the City of Lino Lakes. In 1998 EDAAB changed its name to
the Economic Development Advisory Committee (EDAC) to reflect its status as a
volunteer advisory group rather than an official board required by state statute, but its
mission remains the same.
EDAC established goals within the original economic development plan, and updates its
goals within its one -year action plan. To date, the action plans have resulted in the
location of more than 70 new businesses in the city with an additional market value of
more than $115 million. The economic development goal in the 2002 Comprehensive
Plan was to expand the valuation of commercial /industrial to 10 percent of the tax base
by 2010. This goal was reached in 2008. (See Attachment A).
This updated strategic economic development plan revisits and revises its original goals
to reflect the efforts accomplished over the past five years amid a changing market and
changing community.
INVENTORY
Lino Lakes is a city covering an area of approximately 33 square miles located in the
northeast part of the Twin Cities metropolitan area. A high amenity community, the
current population of Lino Lakes is approximately 20,000.
In the central part of the city, the Rice Creek Chain -of -Lakes Regional Park preserves
3,500 acres of lakes, shore land, and rolling topography in a unique natural environment.
In addition, there are 13 lakes and extensive areas of wetlands. The lakes, wooded area,
and parks will preserve natural habitat as population growth continues.
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Light Industrial
The Apollo Business Park on Apollo Drive is a 100 -acre light industrial development that
includes office /warehouse, manufacturing, and wholesale distribution facilities. The park
is full although the recessionary period of 2008 -2009 have forced the closings of several
tenants within the park.
A light industrial business park called Clearwater Creek Development Center is located
on 35E. Most of the remaining vacant land within the park is owned by a private
developer. It holds good potential for future industrial business development.
The Marshan Industrial Park on Lake Drive began development in 2003. This park has
two remaining small acreage sites for new light industrial business.
The draft comprehensive plan space needs analysis projects an additional 47,000 sq. ft.
of industrial on the west side of the city and 127,000 sq. ft. on the east side of the city by
2020.
Commercial
In recent years the city has turned its focus to the development of commercial business
in the Town Center in Lino Lakes. Commercial development refers to any nonindustrial
development that is taxed at a C/I tax rate, i.e., professional offices, service businesses,
entertainment, and retail. Retail development refers to that which provides consumer
goods at retail prices.
The Town Center on 35W is the primary commercial area that has been designated as
the future "downtown" Lino Lakes. Extensive planning since 1998 has provided the
momentum for development. To date, SuperTarget, Kohl's, three 14,000 sq. ft. multi -
tenant buildings, three banks, two clinics, a convenience store /gas station, the Lino
Lakes Civic Complex, McDonald's. DQ, Discount Tire, affordable apartments, the
YMCA and two hotels have developed in the Town Center area. In addition, the 35W
interchange and bridge have been reconstructed.
Current economic conditions have stalled development, primarily within the high
density, mixed use portion of the project. Moving forward with the project as conditions
approve is a high EDAC priority. The draft comprehensive plan analysis for commercial
use indicates that from 2006 -2010 there will be a total of 24,000 sq. ft. of retail demand
on the west side of the city. However, the city has already exceeded that amount of
retail development, and has considerable empty leasable space available. It can be
assumed that additional retail will be slow until population figures for that market area
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2020.
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The 35E corridor is attracting development interest. A high priority is funding the
completion of the 35E interchange as a necessary condition for any significant
commercial /industrial development. With improvements in place, the draft
Comprehensive Plan analysis indicates the potential for 66,000 sq. ft. of retail space by
2010; and 410,000 sq. ft. by 2020.
COMPREHENSIVE PLAN
It was the intent of EDAC to incorporate the new Lino Lakes Comprehensive Plan
objectives for commercial and industrial land into its Economic Development Plan. This
includes an aggressive economic development growth strategy that recognizes the
relationship between housing growth and commercial /industrial growth. While EDAC's
focus is commercial and industrial expansion and retention, it supports goals and
policies for providing diverse types of housing as part of a sustainable city. EDAC
continues to support the goals and policies of the draft comprehensive plan and will
incorporate them into its action plan.
GOALS /OBJECTIVES
GOAL ONE
Minimize the residential tax burden by raising the commercial /retail /industrial tax bases.
1. OBJECTIVE
Develop an Economic Development Plan for the City of Lino Lakes through 2015
that corresponds to the draft Comprehensive Plan's commercial /industrial
objectives and any updates and revisions thereto.
2. OBJECTIVE
Annually update a one -year Action Plan component of the Five -Year Economic
Development Plan.
3. OBJECTIVE
Identify opportunities within the Comprehensive Plan for future commercial and
industrial growth and initiate planning procedures to manage future growth for the
betterment of the community.
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GOAL TWO
Continue a strong and innovative pattern for the growth of quality economic
development within the City of Lino Lakes.
1. OBJECTIVE
Continue an active economic development process to discover new business
opportunities.
2. OBJECTIVE
Focus city financial and professional staff resources to enable Lino Lakes to
effectively pursue quality economic development opportunities within a
competitive business environment.
3. OBJECTIVE
Prioritize economic development efforts to ensure that the city's financial
commitment in infrastructure, staff time and incentives produces the strongest
commercial /industrial tax base, widest range of goods and services and high
quality development that will meet the needs of future generations.
4. OBJECTIVE
Focus resources on attracting high value industrial, business and professional
services enterprises that have an emphasis on job creation.
5. OBJECTIVE
Support the growth and well being of existing businesses in Lino Lakes.
6. OBJECTIVE
Strive to attain an area wide reputation for being receptive and responsive to
new quality economic development.
7. OBJECTIVE
Support the continuation of the administrative review process to streamline the
planning process for development proposals.
GOAL THREE
Provide continuous and effective coordination and facilitation of the economic
development process.
1. OBJECTIVE
Work in coordination with planning, engineering, finance and environment to
provide comprehensive departmental procedures for effective and orderly
strategies to enable potential new businesses to come to Lino Lakes.
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2. OBJECTIVE
Review changes to comprehensive zoning ordinances that are developed and /or
proposed to be developed to reflect the changing quality of commercial and
industrial development in the city.
3. OBJECTIVE
Identify changing opportunities and constraints and adapt the city's criteria for
prospect selection to achieve the highest quality commercial and industrial
development possible.
4. OBJECTIVE
Meet with the City Council and other advisory boards as appropriate to ensure
continued interaction and communication on economic development policies and
projects.
GOAL FOUR
Implement a long range improvement plan for the "doors" and "windows' of
Lino Lakes to redevelop blighted and substandard areas.
1. OBJECTIVE
Attract new businesses that are complementary to existing businesses and
residential areas, and will contribute to the customer attraction and business
interchange of local commercial areas.
2. OBJECTIVE
Commit city financial and staff resources to the redevelopment of commercial
and industrial properties.
3. OBJECTIVE
Ensure that commercial areas surrounded by residential land uses are designed
to compatibly coexist, creating a physical sense of neighborhood and an
interrelationship between the two land uses.
GOAL FIVE
Protect and enhance the unique natural environment of Lino Lakes as a
sustainable community resource.
1. OBJECTIVE
Promote the long -term preservation of the city's high value natural resources by
supporting Planned Unit Development as an effective tool for implementing the
city's " Comprehensive Plan.
2. OBJECTIVE
Maximize the inherent attractiveness of the physical surroundings of
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each new economic development project.
ATTACHMENTS:
1. Definitions of Zoning Districts
2. Inventory of Development from 1996 -2008
3. Economic Development Tools
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ATTACHMENT A
DEFINITIONS
1. BUSINESS DISTRICTS
Neighborhood Business (NB): Local businesses for convenience, limited office, retail
or service outlets which deal directly with the daily requirements of the immediate
neighborhood and which are located along a collector or arterial artery. They are not
intended to draw customers from the entire community.
General Business (GB): Contains a wide variety of business uses including retail,
service and semi - industrial uses. They may contain businesses, which tend to serve
other business or industry as well as those catering to shopper's needs.
Light Industrial (LI): Uses include service industries and industries which manufacture,
fabricate, assemble or store, where the process is not likely to create offensive noise,
vibrations, dust, heat, smoke, odor, glare or other objectionable influences. Generally,
these include wholesale, service and light industries which are dependent upon raw
materials refined elsewhere.
General Industrial (GI): These are areas which, because of availability to
thoroughfares, suitable topography, and isolation, are appropriate for industrial uses
of a more intense nature and ones which may have certain nuisance characteristics.
ATTACHMENT B
Lino Lakes Commercial Projects
Location
Town Center
Town Center
Town Center
35E /CSAH 14
Town Center
Town Center
35E /CSAH 14
Lake Drive
35E /CSAH 14
Town Center
Town Center
Town Center
Town Center
Apollo Drive
[Birch/Hodgson
Town Center
Town Center
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Town Center
Lake Drive
Lake Drive
Apollo Drive
Apollo Drive
Apollo Drive
Town Center Pkwy
Lake Drive
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Town Center
Town Center
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[Project
IMedCenters
'Fairview Clinic
Patriot Bank
'Clearwater Creek C Store 1
Community Nat'l Bank
Fast Break C Store
'Patriot Bank
Mueller -Bies
Dairy Queen
McDonalds
'Target
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'JADT multi- tenant
Lake Dentistry
Spirit Hills Center
'Spirit
Grill & Chill
Mueller Office Bldg
McCullough multi- tenant
Discount Tires
1Rud Surveyors
Wells Fargo
Metro Land Survey
Apollo Landing (Hampton Inn)
SMW Credit Union
Country Inn & Suites
VFW
MarketPlace multi- tenant
Lakewood multi- tenant
Sears
'Totals:
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ATTACHMENT C
Finance Tools
Economic development actions require a framework for financial- decision making. The investment of
public dollars to achieve economic development objectives should be guided by several key principles:
• Financial resources are limited. The city has limited funding to apply to economic development
initiatives, so the use of resources must be targeted to achieve the greatest effect on the community.
• Financial decisions require Tong -term perspective. The current use of financial resources may reduce
monies available in the future. In evaluating short-term opportunities, it is important to question the
long -term impact on community development.
• Public funds should lead to private investment. While this section focuses on public finance actions,
economic development cannot become reality without private investment. The use of public funds should
be targeted to actions that encourage private investment in Lino Lakes.
A complete examination of the tools available to the city is not possible, but providing an overview of the
most commonly used finance tools is important. Finance plans for actual projects should be made using
appropriate technical and legal advice.
Tax Increment Financing
Tax increment financing (TIF) is the primary development finance tool available to Minnesota cities. TIF is
simple in concept, but complex in its application. Through tax increment financing, the property taxes
created by new development (or redevelopment) are captured and used to finance activities needed to
encourage the development. The challenge in using TIF lies with the complex and ever - changing
statutory limitations. These complexities make it impractical to provide a thorough explanation of tax
increment financing as part of this plan. Instead, this section highlights the use of TIF as it relates to the
implementation of the plan.
. Type of TIF Districts
Four types of TIF districts have application to the plan.
• Redevelopment
• Renewal and Renovation
• Housing
• Economic Development
Tax Abatement
Tax abatement acts like a simpler and less powerful version of tax increment financing. With TIF, the city
controls the entire property tax revenue from new development. Under the abatement statute (Minnesota
Statutes, Sections 469.1812 through 469.1815), the city, county, and school district have independent
authority to grant an abatement.
Special Assessments
Public improvements are often financed using the power to levy special assessments (Minnesota Statutes
Chapter 429). A special assessment is a means for benefiting properties to pay for all or part of the costs
associated with improvements, and to spread the impact over a period of years. This tool can be applied
to both the construction of new improvements and the rehabilitation of existing improvements.
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Adjacent Community Review Draft 11/2008
Limitations
The Lino Lakes City Charter makes it significantly more difficult to use special assessments as an
economic development tool than in other communities. The City Charter contains a process to allow
property owners to use petitions to protest a special assessment project and prevent it from occurring if
there is sufficient opposition. In addition, if the proposed special assessment is for Tess than 100% of the
cost of the improvement, the City Charter requires a citywide vote on the project.
Special Service District
• A special service district is a tool for financing the construction and maintenance of public improvements
within a defined area. Minnesota Statutes, Sections 428A.01 through 428A.10 govern the creation and
use of special service districts. This legislation is currently scheduled to sunset in 2009. A special service
district provides a means to levy taxes (service charge) and provide improvements and service to a
commercial area.
Housing Improvement Area
The City has the power to establish a special taxing district to make improvements in areas of owner -
occupied housing (Minnesota Statutes, Sections 428A.11 through 428A.21). The housing improvement
area is similar in concept to the special service district. It is a special taxing district that can be used to
finance a variety of improvements.
Utility Revenues
The city operates three municipal utilities: water, sanitary sewer and storm water. The revenues from the
operation of these utilities are available to pay for capital improvements in support of community
development initiatives. State Law (Minnesota Statutes, Section 444.075) gives the authority to pledge
these revenues to general obligation bonds for utility system improvements.
Street State Aid
The city receives state aid for the construction and maintenance of the local streets. This aid can only be
used for streets designated for inclusion in the local state aid street system. These revenues can also be
pledged to pay debt service on bonds issued for the construction and maintenance of state aid streets
(M.S. 162.18).
Street Reconstruction
A relatively new municipal power is the ability to issue bonds to finance street reconstruction projects
(M.S. 475.58). To use this authority, the streets to be reconstructed must be part of a "street
reconstruction plan" that describes the streets to be reconstructed, the estimated costs, and any planned
reconstruction of other city streets over the next five years. The issuance of the bonds must be approved
by a vote of all of the members of the governing body following a public hearing. The issuance is subject
to a reverse referendum provision. The city must hold an election prior to issuance if petitioned by voters
within 30 days of the public hearing. Unlike most municipal debt, these bonds are subject to the debt
limit.
Lease Revenue Bonds
Public buildings can be financed through the issuance of lease revenue bonds. This tool combines two
pieces of statutory authority. A housing and redevelopment authority (or EDA using these powers) has
the ability to issue revenue bonds to finance projects pursuant to a redevelopment plan. These projects
can include the construction of public buildings. Most HRAs do not, however, have sufficient revenues to
secure these bonds. A city can provide this revenue through a lease
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Adjacent Community Review Draft 11/2008
purchase agreement with the HRA. The authority for the lease comes from Minnesota Statutes, Section
465.71.
Capital Improvement Bonds
Capital improvement bonds are the newest capital finance power for Minnesota cities. This
authority was granted by the State Legislature in 2003. Through this authority, the City can issue
bonds to finance the acquisition or betterment of a city hall, a public safety facility, or a public
works facility. The statute does not define the precise nature of public safety or public works
facilities. This debt authority is subject to several procedural requirements and limitations.
Source: Draft 2030 Comprehensive Plan
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ACTION PLAN
EDAC, 2009 - 2010
A. TEAM
1. Economic Development Authority
2. Economic Development Advisory Committee
3. Community Development Staff
4. Consultants: Springsted
Kennedy & Graven
Bonestroo
B. PROJECTS
District 1
1. Hodgson Road /County Rd. J Redevelopment
2. Birch Street/Hodgson Road
District 2
3. Legacy at Woods Edge
4. Town Center Development
5. Lake Drive Development
6. Apollo Business Park
7. Marshan Industrial Park
District 3
1. I -35E Corridor Development
C. PROGRAMS
1. Local Business Retention and Expansion
2. Lino Lakes Promotional Program
3. Prospect Subsidy Evaluation
4. Economic Development Evaluation
D. FUTURE PROJECTS
1. 1 -35E /J Development
2. Main St/Lake Drive
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ONE YEAR ACTION PLAN PROJECTS
DISTRICT 1
HODGSON ROAD /COUNTY ROAD J
ACCOMPLISHED:
• A Master Plan identifying appropriate land uses, access and
circulation, utility routing and redevelopment opportunities was
approved and is a part of the city's Comprehensive Plan (2007)
• Traffic signals installed ( 2008)
PURPOSE:
Facilitate the redevelopment of underutilized and substandard
properties at the intersection that benefit the local community by
providing goods and services not currently available.
TIME FRAME: 2009 -2010
STRATEGIES:
1. Recognizing that redevelopment of the area will require an anchor
tenant in order to drive development and needed infrastructure
improvements to the area, work with the developers, neighborhood and
city council to facilitate the development of a grocer on the 17 -acre site
on the west side of Hodgson Road.
2. Recognize that current market conditions and evolving community needs
may require reexamination and potential amendments to the 49/J
Master Plan.
3. Encourage a developer /neighborhood meeting to develop a list of issues
that could negatively impact the surrounding neighborhoods.
4. Work with the developer to address negative impacts through site
design, limitation of hours, neighborhood connections and other
mitigation techniques.
5. Assist with and encourage redevelopment of negative area characteristics
as part of project improvements.
6. Work with new development to provide a "gateway" element.
7. Evaluate the cost /benefits of providing public incentives to a
development project for the purpose of removing blight, improving traffic
flow and extending infrastructure to the area.
8. Work to retain impacted existing businesses by providing support and
technical assistance.
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PROJECTED RESULTS
Removal of blighted and substandard structures, extension of
utilities, improvements to Hodgson Road and County Road J, and
a new anchor tenant can be an impetus for additional mixed use
development, including retail, restaurant, service and housing.
Development can also provide pedestrian connections to
surrounding neighborhoods, improvement of a gateway into Lino
Lakes and new services and jobs to the community.
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District 2
LEGACY AT WOODS EDGE
ACCOMPLISHED:
• Land Swap (1995)
• Civic Complex (1998)
• Sale of city property(2004)
• Awarded three Livable Communities Grants
• Sale of sandblasting plant (2004)
• Public financing for completion of infrastructure, including upgrade of
Lake Drive (2005)
• Infrastructure complete (2006)
• Country Inn & Suites (tax base within TIF District (2006)
• YMCA (2006)
• Lakewood Apartments (affordable component of development
agreement) (2007)
• 13,000 sq. ft. retail space(2007)
PURPOSE:
EDAC recognizes that facilitation of the Woods Edge development
as the focal point of the Town Center based on the guiding
principles established in the Master Plan as a highest priority.
TIME FRAME: Ongoing
STRATEGY:
1. Work with bank /investors /commercial brokers to generate development
interest in purchase of the remaining property.
2. Work with bank /commercial brokers to generate interest in existing
tenant space.
3. Promote the unique opportunities for mixed use and higher densities
available on this site.
4. Develop additional development options for the city council to consider
based on current market conditions and developer interest.
PROJECTED RESULTS:
The Woods Edge project will incorporate public facilities into a mixed -
use commercial /residential development center to provide municipal
services, a physical sense of identity for the City, an active, pedestrian -
oriented environment, and a profitable business center. The City
initiative has used city facilities and the YMCA as a means to stimulate
private development, increase the value of land along I -35W, enhance
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the City's tax base, and provide more direct control over the quality of
development within the City.
TOWN CENTER DEVELOPMENT
ACCOMPLISHED:
PURPOSE:
• Shopping Center development
• Target /Kohl's on tax rolls in 2008 after tax abatement agreement
• Interchange /35W bridge improvement complete.
• Anoka County Library site selected
• Additional retail, multi- tenant, hotels, banks, fast food.
Facilitate the development of the Town Center area to ensure
high quality mix of retail, service, restaurant and office space that
services the needs of the residents and draws on the regional
market for success.
• TIME FRAME: Ongoing
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STRATEGY:
1. Continue to work with developers, landowners and prospects.
2. Identify redevelopment opportunities within the Town Center and
recommend public investment strategies to facilitate redevelopment of
blighted and underutilized land.
3. Continue long range planning efforts to integrate existing and new
development through a mix of uses, connecting pedestrian walkways,
architecture and landscaping.
PROJECTED RESULTS:
The Town Center will create a physical sense of identity for the
City, and a profitable business center that will increase the value
of land along I -35W, enhance the City's tax base, create jobs and
provide a wide range of goods and services for the community.
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LAKE DRIVE DEVELOPMENT
• Completion of city land sale at 49/J (2006)
• RUD Survey development of Gateway corner (2006)
• Completion of design plan for gateway elements (implementation not funded)
• Schwan's relocated to Marshan Business Park (2006
• Schwan's buildings on Lake Drive demolished (2007)
PURPOSE:
TIME FRAME:
STRATEGY:
Establish an environment that favors more orderly
commercial and industrial growth on Lake Drive from
Hodgson Road to Main Street in Lino Lakes.
Ongoing
1. Identify areas for redevelopment due to existing non-
conforming conditions, compatibility problems or under -
utilization of the site.
2. Consider costs /benefits to purchasing 6931 Lake Drive on a
3 -year option. Identify best use of properties in the Triangle
and marketing strategies.
3. Consult with City Council regarding vision and policies for 3-
acre city -owned site on Lake Drive /77`h Street
4. Facilitate the development of new retail and office centers on
Lake Drive, including the city owned parcels (3 acres), by
promoting redevelopment TIF to assist in the purchase and
demolition of non - conforming uses.
5. Identify opportunities to consolidate site access points and
promote shared driveways.
PROJECTED RESULTS:
Development of Lake Drive from Hodgson Road to Main Street in
a manner that realizes its full potential and meets the objectives in
the Comprehensive Plan
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APOLLO BUSINESS PARK
ACCOMPLISHED:
• All parcels sold in business park, park to full buildout
• Multi - tenant rental properties developed as incubator space
• Last TIF District will be decertified at the end of 2009
• More than 1,000 jobs
• More than 400,000 sq. ft. manufacturing /distribution
PURPOSE: Continue marketing the Apollo Business Park to high quality
companies to support full occupancy of existing buildings.
TIME FRAME:
STRATEGY:
1. Work with landowners, landlords and prospective users to market vacant
properties and leasable space in the business park.
2. Strategize methods for creating opportunities based on current market
trends.
3. Develop a list of companies with a potential to move or expand.
4. Target which employers to contact in 2009.
5. Develop a retention strategy for existing /expanding businesses in the park.
PROJECTED RESULTS:
Full occupancy of Apollo Business Park, realizing the optimal tax
base and job creation.
MARSHAN INDUSTRIAL PARK
APOLLO LANDING
ACCOMPLISHED:
• Two businesses sold in business park, two sites remaining
• TIF District formed in 2003.
PURPOSE: Full occupancy of Marshan Industrial Park
TIME FRAME: Ongoing
STRATEGY:
1. Continue working with Rehbein Cos. to market vacant properties
2. Strategize methods for creating opportunities based on current market
trends.
PROJECTED RESULTS:Full occupancy of Marshan Industrial Park, realizing the optimal
tax base and job creation.
7
District 3
35E CORRIDOR
ACCOMPLISHED
• Clearwater Creek Development Center improvements (1990s)
• 3 industrial users
• AUAR Complete for entire corridor
• Main Street reconstruction complete to 35E
• Interchange planning on hold until funding sources identified
PURPOSE:
TIME FRAME:
STRATEGY:
Coordinate the planning of the 35E Corridor to ensure
comprehensive policies for design, development and financing are in
place to promote high quality commercial /industrial land uses.
1. Facilitate the development of Clearwater Creek Development
Center as a generator of tax base to provide a source of public
revenue for major infrastructure improvements on the 35E
interchange.
2. Promote the use of economic development tools generated by
new development to finance needed public improvements, thus
promoting additional economic development.
3. Continue a productive working relationship with local
landowners and jointly market land to private light industrial and
commercial companies and developers.
4. Promote the redevelopment potential of the Clearwater Creek
Development Center to enhance its marketability.
PROJECTED RESULTS
An integrated plan that is proactive in its approach to transportation improvements, land
use, and greenway development to ensure this major development corridor is designed
to foster high quality professional, light industrial, commercial and residential use. This
plan will allow the City to facilitate the orderly economic development of the eastern
"door" to Lino Lakes to enhance the city's tax base.
8
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ONE YEAR ACTION PLAN PROGRAMS
LOCAL BUSINESS RETENTION AND EXPANSION PROGRAM
ACCOMPLISHED:
• EDAC business survey (2008)
• Schwan's relocation (2006)
• Chaired Quad Business Expo (2008)
• Birch Street Corridor Study underway (2009)
PURPOSE:
To provide an atmosphere of support and recognition of local
business and industry's contribution to Lino Lakes and to
encourage growth within the City.
TIME FRAME: Ongoing
STRATEGY:
1. Continue initiating regular contact with businesses in Lino Lakes to
develop a positive public /private relationship.
2. Direct prospective tenants to available leasable and for -sale space in
shopping centers and business parks.
3. Encourage the use of public incentives to move incompatible existing
businesses located within the city to compatible sites within Lino Lakes.
4. Continue updating the inventory of existing businesses for on -going
communications.
5. Continue updating the inventory of land and buildings that are for sale or
lease on the city's website. Make the site more visible.
6. Work with the local media to publicize achievements and contributions
of local businesses within the community.
7. Work with the local Chambers of Commerce to provide additional
support to local businesses.
9
PROJECTED RESULTS:
The program is expected to enhance communication between
local businesses and the City to produce a positive business
climate, support growth and retain industry within the City.
Acting as a partner with local business will enhance the City's
reputation for being receptive to quality economic development.
2. LINO LAKES PROMOTIONAL PROGRAM
ACCOMPLISHED:
PURPOSE: Focus the marketing /promotional campaign to effectively
define the image Lino Lakes wishes to enhance, define the target
audience, and communicate that image through a variety of public
relations efforts.
TIME FRAME: Annual
STRATEGY:
1. Develop cost effective branding program and promotional
materials to effectively communicate the opportunities
available in Lino Lakes to developer leads, the media and
targeted businesses. Budget required.
2. Communicate with developers regarding their perception of
Lino Lakes as a place to do business.
PROJECTED RESULTS:
The development of a Lino Lakes "image" as a community
offering high quality housing, excellent business opportunities,
good schools, and a country -like atmosphere close to the heart of
the metro area.
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3. PROSPECT SUBSIDY EVALUATION
ACCOMPLISHED:
PURPOSE:
Regular review and evaluation the City's financing program
as part of long range economic development planning to
optimize the use of tax increment financing and other funding
sources.
TIME FRAME: Annual
STRATEGY:
1. Reevaluate the city's TIF policy to ensure it is compatible with
the city's goals and objectives.
2. Prioritize the potential uses for business subsidies to ensure
that the city's financial tools and limited resources are
resulting in the highest potential development.
3. Continue public education regarding the appropriate use of
financial tools to encourage development, the long -term
benefits of city participation in commercial /industrial growth,
and the need to ensure financial stability through a broad tax
base that is Tess dependent on residential taxes.
PROJECTED RESULTS:
An ongoing evaluation of current and future uses business
subsidies will promote development within the City in a manner
that most effectively benefits the city's tax base.
11
4. ECONOMIC DEVELOPMENT EVALUATION
ACCOMPLISHED:
• EDAC participation on the Comprehensive Plan Advisory Panel
• Completion of a draft Comprehensive Plan currently under council
review
PURPOSE:
TIME FRAME:
STRATEGY:
Periodic review and evaluation of city policies, plans and
procedures to ensure the mechanisms available to the city are
implementing the city's objective to strengthen the tax base.
1. Support the city council in a periodic review of the city's Land
Use, Transportation, Utilities and Growth Management Plan to
determine if adjustments are necessary to meet the city's
goals and objectives.
2. Participate in ordinance review that is relevant to economic
development upon approval of the Comprehensive Plan
3. Encourage the involvement of citizens and business owners in
public discussions if it is determined that periodic strategy
realignment is necessary.
4. Develop criteria for evaluating prospective development so
that EDAC and the city council can work together to balance
the rights of property owners, residents and developers in
order to achieve development that improves the community as
a whole.
PROJECTED RESULTS:
Effective management practices that protect the city's natural
resources, achieve economic sustainability and maintain high
standards for growth and development.
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WS — Item 2
WORK SESSION STAFF REPORT
Work Session Item 2
Date: 1 June 2009
To: City Council
From: Dan Tesch, Director of Administration
Re: Charter Commission Audit
Background
In October 2008, the City Council was presented with a written request from the Citizens
for Safer Roads to conduct an audit of the practices of the Lino Lakes Charter
Commission. Mr. Michael Dougherty of SSDM Attorneys /Advisors was charged with the
audit. Please find herein said audit.
Attachment(s)
Charter Commission Audit
1
SSeverson, Sheldon, Dougherty a Molenda, P.A.
EVERSON SHELDON
D el Attorneys 1 Advisors
MEMORANDUM
TO: Dan Tesch, Director of Administration
FROM: Michael G. Dougherty
DATE: April 6, 2009
RE: Investigation of Charter Commission Materials
Our office has been asked to issue an opinion regarding certain activities undertaken by the City
of Lino Lakes Charter Commission. These activities were taken in association with a question
placed on the municipal ballot at the general election on November 4, 2008. In the performance
of these activities, the Charter Commission incurred expenses which were then directed to the
City of Lino Lakes for payment.
ACTIVITY
• In October 2008, the Charter Commission contracted with Summit Printing, Inc.
for the production of 6,500 flyers. A banner on the flyer appears as follows:
Vote "No" to KEEP Your RIGHTS
Vote "yes" t • ive them up
The flyer directed the reader to www.linocharter.org for more information and
further stated that the flyer was prepared and paid for by the Lino Lakes Charter
Commission.
• In October 2008, the Charter Commission contracted with Mailing Solutions for
the purposes of mailing 6,481 flyers to addresses in Lino Lakes.
• In October 2008, the Charter Commission contracted with PoliGraphics for the
production of fifty two -sided printed lawn signs. Each lawn sign contained the
following message per side:
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www.
Li noCharter..org
Know Your Rights
The lawn signs contained the following. "Prepared and paid for by the Lino Lakes
Charter Commission, 600 Town Center Parkway, Lino Lakes, Minnesota 55014 ".
• www.linocharter.org is a Web Site/URL that carries a banner that reads "Lino ..
Lakes Charter Commission ".1 In October of 2008, the Home Page of the Web
Site contained the following language:
On November 4, citizens of Lino Lakes will be presented a ballot question
to determine how road widening, reconstruction, city utility expansion and
other public improvement projects will be managed. Under the provisions
of Chapter 8 of the current city charter, citizens enjoy certain rights for
assessable projects that will be lost should the ballot issue pass.
The material on the Web site contains the following notation: Copyright 2008.
Lino Lakes Charter Commission. All rights reserved.
While the Web site contains many "pages," the majority of the content centered
around the theme that in Lino Lakes, the only measure currently in place that
allows voters to restrict tax increases imposed by the City Council is in Chapter 8
of the Lino Lakes City Charter. An example of such content is the following:
"If the charter amendment passes, all citizen input will be surrendered to
the City Council... the checks and balances offered by the current city
charter would be null and void."
AUTHORITY OF THE CHARTER COMMISSION
The existence of a charter commission is conferred by the state legislature. The commission's
only powers are those expressly conferred by statute or implied as necessary to aid in those
expressly conferred powers. The charter commission has no authority to undertake any action
without the existence of enabling legislation to support such activity. In other words, the charter
commission has no inherent power.
The charter commission's expressed powers are only found in Chapter 410 of the Minnesota
Statutes. The powers of the commission enumerated in Chapter 410 are as follows:
1 The cost of operating and maintaining the Web Site were not directed to the City of Lino J akes for payment, and
are not further addressed in this opinion.
• Make rules with reference to its operations and procedures — Section 410.05,
subd. 2
• Submit to the chief judge of the district court each year an annual report and
forward a copy of the report to the clerk of the city — Section 410.05, subd. 2
• May submit to the court the names of eligible nominees to be considered in
making appointments to the charter commission — Section 410.05, subd. 3
• To meet at least once each calendar year and upon presentation of a petition —
Section 410.05, subd. 4
• May discharge itself by a vote of 3/4 of its members — Section 410.05, subd. 5
• May employ an attorney and other personnel to assist in framing such charter, and
any amendment or revision thereof, and direct the reasonable compensation and
the cost of printing such charter, or any amendment or revision thereof, to be paid
by such city — Section 410.06
• Deliver to the clerk of the city either (1) its report determining that a home rule
charter for the city is not necessary or desirable, or (2) the draft of the proposed
charter — Section 410.07
• Any time before the council has fixed the date of the election upon the proposed
charter, the charter commission may recall it for further action — Section 410.10,
subd. 1
• If any charter so submitted be rejected, it may propose others until one is adopted
— Section 410.10, subd. 4
• May propose amendments to a charter and shall do so upon petitions of voters —
Section 410.12, subd. 1
• Modify or approve any summary of a proposed ordinance — Subd. 410.12, subd. 1
• Transmit petitions for charter amendments to the city council — Section 410.12,
subd. 3
• Review for approval or rejection any city council proposed amendment or to
suggest a substitute amendment and notify the council of any action taken —
Section 410.12, subd. 5
A review of the activities undertaken in October of 2008 begins with the purpose of the action
and the authority to support it. The October activities particularly consisted of the Commission
contracting for the production of communication material (e.g. flyers and lawn signs). The
expressly conferred powers of a charter commission, as set forth above, do not include the
authority to contract for flyers and/or lawn signs. Moreover, the contracts for the material are
unnecessary to aid in the carrying out of an express power.
In analyzing the authority of a school district to pay for literature concerning a levy referendum,
the Minnesota Attorney General opined that from the school board's express authority over the
"care, management and control" of school district business, the board had an implied authority to
provide factual information to the public regarding the effect the vote would have on the "care,
management and control" of the district. Unlike a school board or city council, a charter
commission is not charged with the management and control of public property or public
employees or city business. The legislature has not enabled the charter commission with a
general set of public powers,
3
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In 2005, the Minnesota State Auditor's Office was asked to opine on the design and distribution
of a flyer by a charter commission. The Auditor, citing to the Attorney General's opinion, stated
that the charter commission lacked authority to produce and distribute an educational flyer. The
Auditor stated that a charter commission has a narrowly limited statutory purpose. That purpose
is to draft and present the charter or any amendments to the city.
INFORMATIONAL MATERIAL VS. ADVOCACY
As previously noted, unlike public entities charged with management and control of public
assets, the charter commission has no express or implied authority to create communication,
flyers or lawn signs. Notwithstanding the issue of authority, no public entity, including a charter
commission, may advocate for the passage or defeat of a local ballot question. While every
action of the charter commission must be legislatively supported, such actions must also have a
proper public purpose. The Minnesota State Attorney General's office and the Minnesota State
Auditor's office have each authored opinions that there is no public purpose for a public entity to
take a position on a ballot question. Additionally, each office has clearly asserted that public
funds may be not be used to advocate for the adoption or rejection of any ballot question and by
extension local government units may not give money to an organization to advocate or
campaign for or against a ballot question.
The conduct of a campaign by governmental entities before an election for the purpose of
influencing the voters is not the exercise of any legitimately proper legislative power. Public
funds may not be used in support of only one side of any election issue. Any such activity is
beyond the role of government.
"Vote No to KEEP Your RIGHTS. Vote yes to give them up." There can be no clearer example
of advocacy literature that fits the prohibition articulated by the Minnesota State Attorney
General's office and the Minnesota State Auditor's office. Similarly, while less discerning than
the direct language found in the flyer, the lawn signs coupled with the Web Site2 clearly contain
prohibited advocacy.
FAIR CAMPAIGN PRACTICES
Under Chapter 211B of the Minnesota Statutes — Fair Campaign Practice, political purposes is
defined as "an act intended or done to influence, directly or indirectly, voting in a primary or
other election." Minn. Stat. §211B.09 states that an employee or official of the state or of a
political subdivision may not use official authority or influence to compel a person to apply for
membership and/or become a member of a political organization, to pay or promise to pay a
political contribution, or to take part in a political activity. In her Statement of Position made in
2008, the Minnesota State Auditor referred to these statutes while noting that Minnesota's
Campaign Practices law appears to prohibit public officers and employees from approving the
2 We note that the Web site contains a statement that the Web site is 100% paid for through volunteer contributions
by members of the Lino Lakes Charter Commission. However, there can be no doubt that the Web Site belongs to
the Commission as evidenced by the style, title, use of the Commission's name, and more importantly through the
copyright in the name of the Comuj ssiou.
expenditure of funds for ballot issue advocacy. The Auditor's concern statement would appear to
apply to the entering into contracts for the production and distribution of materials for ballot
issue advocacy. As clearly noted on the materials, the flyer and lawn signs indicate that they
were prepared and paid for by the Lino Lakes Charter Commission.
PAYMENT OF CHARTER COMIVHSSION'S EXPENSES
The City Council also asked for direction regarding the charter commission expenses for which it
is obligated to pay. The sole applicable provision of Minnesota law is:
Minn. Stat. § 410.06 Compensation; expenses
The members of such commission shall receive no compensation, but the commission
may employ an attorney and other personnel to assist in framing such charter, and any
amendment or revision thereof, and the reasonable compensation and the cost of printing
such charter, or any amendment or revision thereof, when so directed by the commission,
shall be paid by such city. The amount of reasonable and necessary charter commission
expenses that shall be so paid by the city shall not exceed in any one year the sum of
$10,000 for a first class city and $1,500 for any other city; but the council may authorize
such additional charter commission expenses as it deems necessary. Other statutory and
charter provisions requiring budgeting of, or limiting, expenditures do not apply to
charter commission expenses. The council may levy a tax in excess of charter tax
limitations to pay such expenses.
The first sentence of this statute provides authorization for the charter commission to employ an
attorney and other personnel to assist in framing the charter and any amendment. This sentence
also provides that the reasonable compensation and cost of printing the charter shall be paid by
the city when so directed by the charter commission. The second sentence of the statute caps the
City of Lino Lakes' liability for the charter commission's reasonable and necessary expenses at
$1,500.00 per calendar year; but it allows the City of Lino Lakes to authorize the payment of
additional legitimate charter commission expenses as the City Council deems necessary.
Minn. Stat. § 410.06 has not been the subject of any reported lawsuits.3 However, the section has
been the subject of interpretation by state agencies and most recently by the Dakota County
District Court. The interpretations can be distilled as follows:
• The City (Lino Lakes) has no obligation to pay any charter commission expenses in
excess of $1,500.00 per year.
• Should the Council decide to pay charter commission expenses in excess of $1,500.00
per year, the Council must deem such expenditures as necessary.
• The reasonable amount of any compensation paid to an attorney or other personnel is a
determination to be made by the charter commission.
3 Published casts by the Minncsota Court of Appeals or the Federal Court System.
5
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• The charter commission expenses to be paid by the City must solely relate to: (i) the
employment of an attorney and other personnel to assist in framing the charter or any
amendment or revision and/or; (ii) the cost to print the charter and any amendment or
revision. It is not enough that the expenses be reasonable and necessary.
These interpretations are consistent with the language used in Section 410.06, taken together
with Chapter 645 of the Minnesota Statutes governing the canons of interpretation. "[G]eneral
words are construed to be restricted in their meaning by preceding particular words... "4 In the
cases discussing this canon, it has been held that: where, in a statute, words particularly designate
specific things (reasonable compensation and cost of printing) and are followed by words of
general import regarding comprehensively designating things (reasonable and necessary charter
commission expenses), the latter are generally to be regarded as comprehending only as to the
matters particularly stated. In other words, the latter used phrase (reasonable and necessary
commission expenses, found in sentence two of §410.06) solely relates to the prior phrase
(reasonable compensation and cost of printing, found in sentence one of §410.06).
The first part of Section 410.06 particularly designates that the commission may contract for the
reasonable compensation of an attorney or other personnel for the sole purpose of framing a
charter and amendments. Following the limited contractual language are the words that
prescribe the payment of $1,500.00 by the City using the general term of "reasonable and
necessary charter commission expenses ". Under the rules of construction the phrase
"commission expenses" relates solely to the payment of compensation to an attorney or others
employed to assist in framing amendments or revisions to the charter (the cost of printing the
amendment or revision is also included.)
Recently, the Dakota County District Court, in denying a charter commission's request for
reimbursement from the City for the cost of producing a Web Site, found that for expenses to be
paid by the city, the expenses must relate to the statutory itemized expenses of: (1) the
employment of an attorney and other personnel to assist in framing the charter and any
amendment or revision and (2) the cost to print the charter and any amendments or revision. A
city is not authorized by statute to pay for other charter commission expenses.
The Court's interpretation also conforms to the position of the Office of the State Auditor. The
Office of the Auditor has stated that to "simply annually appropriate $1,500 to a charter
commission .... is inconsistent with the statute." The expenses must be reasonable and
necessary and related to the charter commission's purpose and powers laid out in the statute."
4 Minn. Stat. § 615.08, subp. 3 (2008).
SOURCES FOR OPINION
• Flyer entitled Keep Your Rights prepared and paid for by Lino Lakes Charter
Commission
• Invoice from Summit Printing, Inc. for Charter Commission flyer
• Invoice from Mailing Solutions to Lino Lakes Charter Commission for mailing piece
• Invoice from PoliGraphics to Lino Lakes Charter Commission for 50 lawn signs
• Printed material from Web site: www.linocharter.org (Copyright 2008. Lino Lakes
Charter Commission. All rights reserved.)
• Opinion of the Attorney General 159a -3 (May 24, 1966)
• Opinion of the Attorney General 159b -11 (September 17, 1957)
• Findings of Fact, Conclusions of Law, Order and Order for Judgment and Judgment in
Bette Fedde, on behalf of the Eagan Charter Commission v. City of Eagan, Dakota
County District Court (May 5, 2008)
• Statement of Position by Rebecca Otto, Office of the State Auditor, Expenditure of
Public Funds on Ballet Issue Advocacy (2008)
• Minn. Stat. Chapter 410
• Minn. Stat. §211.B.01 and 211B.09
• Minn. Stat. §210.06
• Minn. Stat. Chapter 645
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7
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SSeverson, Sheldon, Dougherty Et Motenda, P.A.
EVERSON SHELDON
Ei fl D el Attorneys I Advisors
MEMORANDUM
TO: Dan Teach, Director of Administration
FROM Michael G. Dougherty
DATE: April 10,2009
RE: wry oiAttomey Opinion
In accordance with your request, the following summarizes the key components of our written opinion
dated April 6,2009, regarding the investigation of Charter Commission iviatexiat•
• The Clymer Commission has limited powers which are emumented in Chapter 410 of the
Minnesota Statutes.
• The and Commission may only contract for (1) the employtnent of an attorney and Other '
perrammel to assist in framing a charter and any Mite:id/Tient or revision and (2) the cost of
ing the charter and any amendment or revision.
• The Cormramtion does not have any express or implied powei
the preparation dillies, lawn signs and/or Web sites .
preiParo or centred fOr
• TheCharterrenzussion has no expsress or milked power tO niannwand control public property,
rdiio employees ot city business.
• lvfninesota Statutes limit the City of lino Lakes' payment of charier cenunissjen expenses oest
of attorney and other personnel sitting in the amendment or revhdon of the chatter and cost or
Printing) tO S1,500.00 per year
• The City of Lino Lakes may -exceed the $1,500.00 per year limit if the-Council deems the excess
payment (cost of attorney and other personnel assisting the amendment or revision of the charter
and cost &priming) to be necessary.
• When directed by the Charter Commission for payment, the payment made by the City of Lino.
Lakes shall be paid directly to the vendor (attorney or printer).
cc: Al Rolek, Finance Director
WS -3
WORK SESSION MEMORANDUM
STAFF ORIGINATOR Al Rolek
MEETING DATE June 1, 2009
TOPIC 2008 Audit Report
Michelle Bruley and Craig Poppenhagen of LarsonAllen, LLP will be in attendance at the meeting
to present the 2008 Annual Financial Report and provide an overview of the City's financial
statements, present the auditor's management analysis and answer any questions you may have
with regard to the financial condition of the City.
The 2008 annual audit was undertaken by the City's auditors, LarsonAllen, LLP, earlier this year,
with field work being completed in late March. The auditors review all financial transactions and
the financial reports of the City over the previous year for their faimess in presentation and for full
disclosure of all material aspects of the City's financial condition. This review is conducted in
accordance with generally accepted auditing standards and the standards applicable to financial
audits contained in U.S. Govemment Auditing Standards, issued by the Comptroller General of
the United States. The auditors concluded that the City's financial statements for 2008 presented
fairly, in all material respects, the financial position of the City as of December 31, 2008. The
auditors also issue their reports on the City's legal compliance with certain laws, regulations,
contracts, etc., our internal control structure, and management issues.
It should be noted that the City has received the Certificate of Achievement for Excellence in
Financial Reporting from the Govemment Finance Officers Association of the United States and
Canada for its 2007 Comprehensive Annual Financial Report. We believe that the report issued
for 2008 continues to uphold the standards of reporting excellence that this prestigious award
represents.
The presentation at the work session will be comprehensive and is intended to provide the
opportunity for council members to ask any questions or make comments about the audit report
and the state of city finances. Ms. Bruley and Mr. Poppenhagen will also give an abbreviated
presentation at the regular City Council meeting on June 8, 2009, and the staff recommends that
the City Council formally, by motion, accept the 2008 Annual Audit Report at that time.
NOTICEABLY DIFFERENT
Cit y of Lino Lakes, Minnesota
December 31, 2008
Auditor Communications
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Michelle Bruley, Senior
Craig Popenhagen, Principal
Ph. 612 - 397 -3077
Ph. 612- 397 -3087
mbruley @larsonallen.com
cpopenhagen @larsonallen.com
CITY OF LINO LAKES, MINNESOTA
OTHER AUDITOR REPORTS
YEAR ENDED DECEMBER 31, 2008
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31, 2008
Page
Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance
with Governmental Auditing Standards 1
Report on Minnesota Legal Compliance 6
Other Required Auditor Communications 8
New Accounting and Reporting Standards 13
Lars•nAllen
CPAs, Consultants & Advisors
www.larsonallen.com
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON
AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
We have audited the 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 and have issued our report thereon dated May 26, 2009. 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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial reporting as
a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal
control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is Tess severe than a material weakness, yet
important enough to merit attention by those charged with governance. A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility
that a material misstatement of the City's financial statements will not be prevented, or detected and
corrected on a timely basis.
Our consideration of the internal control was for the limited purpose described in the first paragraph and
was not designed to identify all deficiencies in internal control that might be deficiencies, significant
deficiencies, or material weaknesses. We did not identify any deficiencies in internal control that we
consider to be material weaknesses, as defined above.
1
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Honorable Mayor and
Members of the City Council
City of Lino Lakes
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit and, accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to
be reported under Government Auditing Standards.
During the course of our audit, several items came to our attention that we feel could be addressed by
the City of Lino Lakes to more efficiently run the City's operations or improve its internal controls. We
herein submit the following suggestions to the City of Lino Lakes for their consideration.
Auditor Comments:
Capital Project Deficits
The financial statements for the capital project funds are presented in Statements 3, 5, 12, and 13 of the
2008 Annual Financial Report. As of December 31, 2008, four capital project funds have deficit fund
balances equaling a combined deficit of $1,716,501. While this is an on -going comment, we would Tike
to recognize the significant improvements made related to fund balance deficits over the past four
years. The following describes the status of each of these funds:
- One of the deficits is very typical for any city operating a TIF fund (TIF 1 -11). This fund showed
positive operating results with revenues in excess of expenditures of $60,435 for 2008.
- The second deficit is simply a timing difference between expenditures and the related MSA
funding source (CSAG 14/8 Reconstruction Project). As anticipated, this fund will continue to run
a deficit until the project nears completion and the MSA revenue is recognized.
- The third has specifically been addressed by the Council and a plan is being implemented to
reduce the deficit over the near future (Dedicated Parks). This fund showed positive operating
results with revenues in excess of expenditures of $60,480 for 2008.
- The fourth deficit is from the 135E Interchange Fund. The fund was new during 2008 and
incurred one expense. This is a County project and at this time the City does not know the final
plans of the project.
Area and Unit Charge Fund
On January 11, 1988, the City Council approved Resolution 1 -88, which established the Area and Unit
Charge Fund for the City. The purpose of this fund is to collect various area and unit charges to be used
to meet debt payments. Before October 1 of each year, the City estimates the required transfer needed
to meet debt payments for the subsequent year. In December, these estimated amounts are transferred
to the various debt funds. We recommend that the City continue to closely monitor actual versus
projected area and unit assessment collections to assure that debt payment requirements will be met.
Designations of balances required for debt service is necessary to define discretionary construction
balances available to the City. The financing plan for the following bond issues have pledged area and
unit charges for the repayment of debt service:
• Improvement and Utility Bonds of 2004A
• Water Revenue Bonds of 1999B
• Water Revenue Bonds of 1996B
(2)
Honorable Mayor and
Members of the City Council
City of Lino Lakes
The Improvement and Utility Bonds of 2O04A have future debt service requirements (principal and
interest) totaling $1,396,532.
During 2008, transfers of $460,098 and $82,813 were made to the Improvement Bonds of 2005B and
Improvement Refunding Bonds of 2003A debt service funds.
The Water Revenue Bonds of 1999B were paid off during 2008. The City annually transfers amounts
from the Area and Unit Charge Fund to the Water Fund sufficient to help cover the debt services of
these bonds. During 2008, no transfer was made to the Water Fund. It is the City's intention to repay the
Water Revenue Bonds of 1999B and 1996B with revenues of the Water Fund. If revenues are not
sufficient to meet the debt requirements, funds will be transferred from the Area and Unit Charge Fund.
DEBT SERVICE FUNDS
Debt service funds are a type of governmental fund used to account for the accumulation of resources
for the payment of principal and interest on general obligation debt (other than enterprise fund debt).
Debt service funds may have one or a combination of revenue sources pledged to retire debt including
property taxes, tax increments, special assessments and area and unit charges.
The diverse nature of the type of debt included in the same fund type requires careful analysis to
determine the adequacy of the fund balance and projected fund balance. The following schedule
extracts information from Exhibits 2 and 3 of the 2008 Annual Financial Report to assist in this analysis.
The following schedule compares outstanding debt with assets pledged for debt retirement. This
comparison provides a means to judge (at least on a preliminary basis) the financial position of each
individual debt service fund.
Fund Description
General Debt:
Certificates of Indebtedness
Lease Revenue Bonds of 1998A
Public Project Revenue Bonds 1999C
Tax Abatement Bonds 2006C
Utility Revenue Bonds 2006D
CIP Refunding Bonds 2006E
TIF Bonds 2007A
Special Assessment Debt:
Improvement Bonds of 2002A
Improvement Bonds of 2002B
Improvement Bonds of 2003A
Improvement Bonds of 2003B
Improvement Bonds of 2004A
Improvement Bonds of 2005A
Refunding Imp. Bonds of 2005B
December 31, 2008
Fund
Balance
Deferred
Revenue
Total
Deferred
Tax
Levies
Total Remaining Over
Resources Debt Service (Under)
Available Scheduled Funded
$ 117,925 $ 7,846 $ 125,771 $
502,810 6,659 509,469
355,116 3,616 358,732
55,851 2,683 58,534
17,316 153,630 170,946
61,626 3,292 64,918
126,659 - 126,659
489,508
126,788
104,570
3,631,190
3,843,210
5,970,514
$ 615,279 $ 232,375 $ 382,904
636,257 410,000 226,257
463,302 194,259 269,043
3,689,724 3,509,992 179,732
170,946 621,941 (450,995)
3,908,128 3,720,000 188,128
6,097,173 5,601,433 495,740
$ 1,237,303 $ 177,726 $ 1,415,029 $ 14,165,780 $ 15,580,809 $ 14,290,000 $ 1,290,809
$ 262,748 $ 83,522 $ 346,270 $ 29,972 $
938,512 386,395 1,324,907 -
54,728 184,340 239,068
86,724 41,873 128,597 129,745
311,056 217,589 528,645 1,511,874
1,069 5,370,475 5,371,544 6,848,539
513,132 314,854 827,986 3,094,482
376,242
1,324,907
239,068
258,342
2,040,519
12,220,083
3,922,468
$ 149,198 $ 227,044
1,357,060 (32,153)
882,571 (643,503)
204,903 53,439
1,396,532 643,987
6,935,546 5,284,537
3,430,470 491,998
$ 2,167,969 $ 6,599,048 $ 8,767,017 $ 11,614,612 $ 20,381,629 $ 14,356,280 $ 6,025,349
Note: Deferred revenue in the above table does not include the future scheduled "interest portion" of the
adopted assessment rolls. The 2004A Improvement Bonds also include a pledge from the Area and
Unit Fund that has not been included above.
(3)
Honorable Mayor and
Members of the City Council
City of Lino Lakes
The above table provides a means for monitoring the status of the debt service funds. For the General
Debt funded solely by property taxes, it appears that there are adequate planned levies to retire the debt
when the future lease revenues scheduled to be received from the school district are included.
While in total the City has a surplus of total resources available over remaining scheduled debt service
based on the calculation above, certain individual funds are operating at a deficit. These deficits will
need to be funded by future adopted assessment rolls, special assessment levies, investment earnings,
transfers from other funds, property taxes or other available means.
Factors to consider when analyzing debt service funds:
• Are all the anticipated assessment rolls being adopted as soon as appropriate?
• Have all the planned financing sources been identified, such as pledged amounts from the area
and unit fund or future MSA funds?
• Are there significant "prepayments" received from property owners? In the current investment
environment, will the earnings the City will receive on these prepayments be lower than the
interest rate that was being charged on the adopted assessment roll?
The Area and Unit Fund is committed to the debt service of some special assessment bonds as well as
toward the water revenue bonds. The City's five -year operating plan addresses the above issues and
therefore, this comment is simply a reminder of the extent that repayment of certain debt is based on
pledged sources from the Area and Unit fund.
Cash Receipts
During our audit, we performed walk throughs on the park and recreation cash receipting process. It
was noted during our procedures that there is not a review process in place for credits applied to
customers accounts. To provide proper control over the credit application process, we recommend an
individual from outside the department review credits applied to individual customer accounts for
reasonableness.
Information Technology
Software Administration — We noted that access to the server is authenticated via a generic admin user
ID and password. Best practices advise the City to implement complex passwords for the server hosting
the general ledger system. At a minimum, passwords should be 8 characters, alphanumeric, and
expiring at a minimum of every 90 days.
Physical Security — We noted that the server room is not temperature controlled. We therefore
recommend that the City consider installing environmental controls to adequately safeguard network
infrastructure from excessive heat, cold, dust, etc
Disaster Recovery Plan — We noted that the City has not established a formal, written business
continuity or disaster recovery plan to be used in the event of a disaster. We therefore recommend the
City develop a written plan to support the recovery of the technical infrastructure that can be used for
testing and training purposes. In addition, the plan should be constructed in a format that could be
followed by individuals not familiar with City operations in the event "key" information technology
personnel are affected by the disaster event and are not available to execute recovery activities.
(4)
Honorable Mayor and
Members of the City Council
City of Lino Lakes
Inventory Capital Assets
The City has a significant investment in equipment, and we recommend that controls be strengthened in
this area. Most capital assets are not physically inventoried, counted or verified. We recommend that
periodic physical counts of property, especially removable equipment items, be taken and compared to
the detailed capital asset subsidiary ledger. Affixing identifying tags with numbers as assigned in the
subsidiary ledger will aid in making this comparison. The added controls will do the following:
• Assist in planning for capital expenditures.
• Assist determining accurate amounts and values of insurable assets.
• Assist detecting the loss or unauthorized use of assets.
During the audit it was also noted that although an accountant prepares a monthly reconciliation of
capital outlay, construction in process and capital assets, the reconciliation is not reviewed. To improve
segregation of duties we recommend review and approval of the monthly reconciliation by someone
other than the preparer who has knowledge of capital asset activity.
Conclusion
We welcome the opportunity to discuss the points mentioned in this letter or any other accounting and
procedural issues in order to coordinate our efforts with you, the mutual objective being the
development of more effective accounting procedures for the City. We understand that some of the
aforementioned points are in the process of implementation or may already have been implemented;
however, these points are noted so that effective follow -up can be accomplished.
We sincerely appreciate all the courtesies and cooperation extended to us by you and the staff of the
City, and thank you for the opportunity to be of service to you. We look forward to working with you in
the future.
This report is intended solely for the information and use of the City Council, finance committee,
management, the Office of the State Auditor, and federal awarding agencies and pass- through entities
and is not intended to be and should not be used by anyone other than these specified parties.
Minneapolis, Minnesota
May 26, 2009
(5)
LarsonAllen LLP
L•P
LarssnAllen
LLP
CPAs, Consultants & Advisors
www.Iarsonallen.com
REPORT ON MINNESOTA LEGAL COMPLIANCE
Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
We have audited the 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 and have issued our report thereon dated May 26, 2009.
We conducted our audit in accordance with U.S. generally accepted auditing standards, the standards
applicable to financial audits contained in Governmental Auditing standards, issued by the Comptroller
General of the United States, and the provisions of the Minnesota Legal Compliance Audit Guide for
Local Government, promulgated by the State Auditor pursuant to Minnesota Statute 6.65. Accordingly,
the audit included such tests of the accounting records and such other auditing procedures as we
considered necessary in the circumstances.
The Minnesota Legal Compliance Audit Guide for Local Government covers seven main categories of
compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public
indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing. Our
study included all of the listed categories.
The results of our tests indicate that, with respect to the items tested, the City of Lino Lakes, Minnesota
complied with the material terms and conditions of applicable legal provisions, except as noted in the
schedule of findings.
This report is intended solely for the use of the City of Lino Lakes, Minnesota, the Office of the State
Auditor, and other state agencies, and is not intended to be and should not be used by anyone other
than these specified parties.
LarsonAllen LLP
Minneapolis, Minnesota
May 26, 2009
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CITY OF LINO LAKES
SCHEDULE OF FINDINGS
YEAR ENDED DECEMBER 31, 2008
Finding: 2008 -01 Contracting and Bidding
Finding: Minnesota statutes require that all contracts greater than $75,000 obtain a performance bond
and bid bond in the amount of the contract. During our testing, we noted one contract that did not have
a performance bond and bid bond.
Corrective Action Plan: The City will require all contracts greater than $75,000 to have a performance
bond and bid bond in the amount of the contract in the future.
(7)
LarsonAlleri
LLP
CPAs, Consultants & Advisors
www.larsonallen.com
OTHER REQUIRED AUDITOR COMMUNICATIONS
Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
We have audited the 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 for
the year ended December 31, 2008, which collectively comprise the City's basic financial statements
and have issued our report thereon dated May 26, 2009. Professional standards require that we provide
you with the following information related to our audit.
Our Responsibility under U.S. Generally Accepted Auditing Standards and Government
Standards
Auditing
As stated in our engagement letter date November 12, 2008, our responsibility, as described by
professional standards, is to express opinions about whether the financial statements prepared by
management with your oversight are fairly presented, in all material respects, in conformity with U.S.
generally accepted accounting principles. Our audit of the financial statements does not relieve you or
management of your responsibilities.
As part of our audit, we considered the internal control of the City of Lino Lakes. Such
were solely for the purpose of determining our audit procedures and not to provide
concerning such internal control.
As part of obtaining reasonable assurance about whether the financial statements are
misstatement, we performed tests of the City of Lino Lake's compliance with certain p
regulations, contracts, and grants. However, the objective of our tests was not to prov
compliance with such provisions.
1. Our responsibility is to plan and perform the audit to obtain reasonable
assurance that the financial statements are free of material misstatement.
2. We are responsible for communicating significant matters related to the
professional judgment, relevant to your responsibilities in overseeing t
process. However, we are not required to design procedures specifically to
3. We are also responsible for communicating matters regarding the prov.
Legal Compliance Audit Guide for Local Government, promulgated by th
Minnesota Statute 6.65.
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onsiderations
any assurance
free of material
ovisions of laws,
ide an opinion on
, but not absolute,
audit that are, in our
e financial reporting
identify such matters.
sions of the Minnesota
e State Auditor pursuant
nt accounting and consulting firms.
Honorable Mayor and
Members of the City Council
City of Lino Lakes
Other Information in Documents Containing Audited Financial Statements
Our audit opinion, the audited financial statements, and the notes to financial statements should only be
used in their entirety. Inclusion of the audited financial statements in a client prepared document, such
as an annual report, should be done only with our prior approval and review of the document. Our
responsibility for other information in documents containing the entity's financial statements and report
does not extend beyond the financial information identified in the report. We do not have an obligation
to perform any procedures to corroborate other information contained in such documents.
Planned Scope and Timing of the Audit
We performed the audit according to the planned scope and timing previously communicated to you in
our meeting about planning matters on January 22, 2009.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City of Lino Lakes are described in Note 1 to the financial statements.
The City adopted Governmental Accounting Standards Board (GASB) Statement No. 45, Accounting
and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, which was
effective for the year ended December 31, 2008. Accordingly, the accounting change for other
postemployment benefits has been applied prospectively beginning in 2008, as permitted by GASB
Statement No. 45. The City also adopted GASB Statement No. 49, Accounting and Financial Reporting
for Pollution Remediation Obligations, and GASB Statement No. 50, Pension Disclosures -an
Amendment of GASB Statements No. 25 and No. 27. The adoption of GASB Statements No. 49 and
No. 50 did not have a significant impact on the City's financial statements.
We noted no transactions entered into by the City during the year for which there is a lack of
authoritative guidance or consensus. There are no significant transactions that have been recognized in
the financial statements in a different period than when the transaction occurred.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's knowledge and experience about past and current events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their significance
to the financial statements and because of the possibility that future events affecting them may differ
significantly from those expected. The most sensitive estimates affecting the financial statements were:
Estimated useful lives of depreciable capital assets - Management's estimate of useful lives for
depreciable assets is based on guidance recommended by authoritative accounting literature and
past experiences. The useful life of a depreciable asset determines the amount of depreciation that
will be recorded in any given reporting period as well as the amount of accumulated depreciation
that is reported at the end of a reporting period.
Estimated year -end valuation of investments at fair value — Management's estimate of the fair value
of investments is based on published market values at December 31, 2008.
Estimated current portion of compensated absences payable — Management's estimate of the
amount of the year -end compensated absences payable balance to be taken by employees is
based on historical trends and anticipated leave time activity.
(9)
Honorable Mayor and
Members of the City Council
City of Lino Lakes
We evaluated the key factors and assumptions used to develop the above estimates in determining that
it is reasonable in relation to the financial statements taken as a whole.
The disclosures in the financial statements are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely adjustments identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management.
The attached schedule summarizes unrecorded adjustments of the financial statements. Management
has determined that their effects are immaterial, both individually and in the aggregate, to the financial
statements taken as a whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing
matter that could be significant to the financial statements or the auditors' report. We are pleased to
report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated May 26, 2009.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation
involves application of an accounting principle to the City's financial statements or a determination of the
type of auditors' opinion that may be expressed on those statements, our professional standards require
the consulting accountant to check with us to determine that the consultant has all the relevant facts.
To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City's auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not
a condition to our retention.
(10)
Honorable Mayor and
Members of the City Council
City of Lino Lakes
This report is intended solely for the use of the City Council, finance committee, and management of the
City of Lino Lakes and is not intended to be, and should not be used by anyone other than these
specified parties.
LarsonAllen LLP
Minneapolis, Minnesota
May 26, 2009
CITY OF LINO LAKES
SUMMARY OF PASSED ADJUSTMENTS
DECEMBER 31, 2008
Description
Debit Credit
Inventory $ 55,446 Water Fund
Expense $ 55,446
(To record inventory that is not booked)
(12)
New Accounting and Reporting Standards
Accounting and Financial Reporting for Intangible Assets (GASB Statement No. 51)
This statement is effective for periods beginning after June 15, 2009 and, therefore, is applicable to the
City for the year ended December 31, 2010. The purpose of this statement is to eliminate the
inconsistencies in accounting and reporting between governmental entities related to intangible items
such as easements, rights, patents, trademarks, software, and donated assets.
Fund Balance Reporting Changes (GASB Statement No. 54)
In March 2009, the Governmental Accounting Standards Board GASB issued Statement No. 54, Fund
Balance Reporting and Governmental Fund Type Definitions. The requirements of this Statement are
effective for the fiscal year ending December 31, 2011. Earlier adoption and implementation is
encouraged.
Statement No. 54 distinguishes between fund balance amounts that are considered non - spendable,
such as fund balance associated with inventories, and other amounts that are classified based on the
relative ability to be spent. Beginning with the most non - spendable classification, fund balances will be
reported in the following classifications:
• Restricted — amounts constrained by external parties, constitutional provision, or enabling
legislation.
• Committed — includes amounts that can be used only for the specific purposes determined by a
formal action of the government's highest level of decision - making authority
• Assigned — amounts a government intends to use for a particular purpose. In governmental
funds other than the general fund, assigned fund balance represents the remaining amount that
is not restricted or committed.
• Unassigned — amounts that are not constrained at all will be reported in the general fund or to
report deficit balances in other governmental funds.
The new standard also clarifies the definitions of individual governmental fund types. The statement
interprets certain terms within the definition of special revenue fund types, while further clarifying the
debt service and capital projects fund type definitions. The statement also specifies how economic
stabilization or "rainy -day" amounts should be reported as a component of fund balance in the general
fund. Under GASB No. 54, it is no longer considered appropriate to include these types of funds as a
special- revenue fund. For financial reporting purposes, stabilization should be regarded as a "restricted"
or "committed" classification only if the city details the circumstances or conditions that signal the need
for stabilization in sufficient detail. Otherwise, these amounts should be reported as "unassigned" in the
general fund.
(13)
WS — Item 4
WORK SESSION STAFF REPORT
Work Session Item No. 4
Date: June 1, 2009
To: City Council
From: James E. Studenski, City Engineer
Re: Pine Street - Petition to have the City of Lino Lakes Research the cost
of paving Pine Street.
Background
• Attached is the map from the last Lino Lakes Work Session showing the Pine Street Area
•
Petition to Research the Cost of Paving Pine Street, dated May 4, 2009.
1) Current Maintenance
The City grades the road monthly and sprays the gravel street for dust control once a
year.
2) Funding
a) State Aid.
Pine Street is not designated as a Lino Lakes state aid street, therefore state aid
funds are not available for this project. State aid streets are typically streets that
connect a County or State Highway to another and serve higher volumes of
traffic. The City of Columbus does not have the population to qualify itself for
state funding and therefore it can not be designated as a state aid route.
b) City
If the City does not assess 100% of the costs of this project and uses general
funds, the City will be required to place this project as a referendum question.
3) Cost Estimate
The cost estimate prepared by the Columbus City Engineer in June 2004 for a 24 -foot
rural street with 3.5 inches of bituminous has been revised to reflect current prices.
1
The Rice Creek Watershed District will require some stormwater management
practices near wetlands along Pine Street. The project will also require coordination
of two culverts along Pine Street that are under Rice Creek Watershed District
jurisdiction.
The total project cost from Lake Drive to the west end of Pine Street is estimated to
be $685,000. To pave from Lake Drive to 4th Avenue the cost is estimated to be
$390,000. The costs of this project will be split 50% - 50% between the City of Lino
Lakes and the City of Columbus. The cost estimates include construction,
contingencies, administiation, engineering and legal.
With the costs split, the Lino Lakes portions of the estimate for paving Lake Drive to
the west end of Pine Street would be $342,500 ($685,000 /2) giving a pending
assessment cost for each of the 36 properties of approximately $9,515. The Lino
Lakes portion of the estimate of paving Lake Drive to 4th Avenue is $195,000
($390,000 /2) giving a pending assessment cost for each of the 21 properties of
approximately $9,285.
a) City of Columbus
At the May 4, 2009 Lino Lakes Work Session a statement was made that the City
of Columbus has approved this project and is ready to move forward in the
process and that the estimated cost per resident is approximately $7,000. The
City of Columbus was contacted to verify the status of this project and they have
stated that they are awaiting any Lino Lakes actions. They have subsequently
authorized their engineer to work with Lino Lakes on updating construction costs.
The estimated cost of $7,000 per Columbus resident is a figure developed from
the 2004 estimated costs.
4) Schedule:
ORDER FEASIBILITY STUDY JUNE 2009
ACCEPT FEASIBILITY STUDY AND CALL PUBLIC HEARING JULY 2009
• Notice of hearing shall be published twice, at least one week apart, in the official
newspaper of the City no less than two weeks prior to the date of hearing, and
• A copy of the hearing, including estimated unit prices and the estimated total
price, shall be mailed to each benefited property owner at least two weeks prior
to the date of the hearing.
PUBLIC HEARING AUGUST 2009
PE'1'1'11ONING PROCESS
• Within 60 days after close of public hearing, the following petitions can be filed:
(August 2009 to October 2009 = 60 Days)
— A petition against improvement by either majority of property owners
proposed to be assessed or if initiated by (l a) at least equal to number
2
•
•
•
•
•
•
petitioning for improvement under (1 a). Council can not make
improvement at expense of benefited property owners. Council can not
vote on same improvement for one year from public hearing.
If petition for improvement at least equal to (4ai), then Council can order
improvement.
AUTHORIZE IMPROVEMENT PROJECT NOVEMBER 2009
APPROVE PLANS AND SPECS AND ORDER AD FOR BIDS SPRING 2010
ACCEPT BIDS SPRING 2010
ASSESSMENT HEARING SPRING 2010
START CONSTRUCTION SPRING 2010
END CONSTRUCTION FALL 2010
Requested Council Direction
City Staff is requesting direction from the City Council on how to proceed with this
project.
3
600Z 17 A` LN
LINO LAKES RESIDENTS WHO SIGNED THE PETITION
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NE STREET AREA PETITION TO RESEARCH THE COST OF PAVING PINE STREET
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