HomeMy WebLinkAboutComprehensive Annual Financial Report 12/31/2007COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LINO LAKES, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2007
Prepared By: Finance Department
Alan Rolek, Director of Finance
Paula Schloer, Accountant
CITY OF LINO LAKES, MINNESOTA
— TABLE OF CONTENTS
Page
Reference Number
I. INTRODUCTORY SECTION
Principal City Officials 1
— Organizational Chart 2
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting 8
II. FINANCIAL SECTION
Independent Auditors' Report 9
Management's Discussion and Analysis 11
Basic Financial Statements
Statement of Net Assets Statement 1 20
Statement of Activities Statement 2 21
Balance Sheet - Governmental Funds Statement 3 23
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets Statement 4 25
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Governmental Funds Statement 5 26
Reconciliation of the Governmental Funds Statement of Revenue,
Expenditures and Changes in Fund Balance to the Statement
— of Activities Statement 6 28
Statement of Net Assets - Proprietary Funds Statement 7 29
Statement of Revenues, Expenses and Changes in Net Assets -
Proprietary Funds Statement 8 30
Statement of Cash Flows - Proprietary Funds Statement 9 31
Statement of Net Assets - Fiduciary Funds Statementl0 32
Notes to Financial Statements 33
CITY OF LINO LAKES, MINNESOTA
— TABLE OF CONTENTS
■
Page
Reference Number
Required Supplementary Information
General Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual Statement1 l 54
Notes to Required Supplementary Information 61
Combining Fund Financial Statements
Combining Balance Sheet - Nonmajor Governmental Funds Statement 12 62
—
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance - Nonmajor Governmental Funds Statement 13 69
Special Revenue Fund - Program Recreation:
- Schedule of Revenue, Expenditures and Changes in Fund
Balance - Budget and Actual Statement 14 76
Statement of Changes in Assets and Liabilities - Fiduciary Funds Statement 15 77
—
Supplementary Financial Information
Combined Schedule of Indebtedness Exhibit 1 78
Schedule of Deferred Tax Levies Exhibit 2 80
Debt Service Payments to Maturity - All Bonds Exhibit 3 82
Insurance in Force Exhibit 4 85
Taxable Valuations, Tax Levies and Tax Rates Exhibit 5 86
III. STATISTICAL SECTION
Net Assets by Component - Last Five Fiscal Years Table 1 87
Changes in Net Assets - Last Five Fiscal Years Table 2 88
Fund Balances, Governmental Funds - Last Ten Fiscal Years Table 3 90
Changes in Fund Balances, Governmental Funds - Last Ten Fiscal Years Table 4 92
Assessed and Actual Value of Taxable Property -
Last Ten Fiscal Years Table 5 94
—
Direct and Overlapping Property Tax Rates -
Last Ten Fiscal Years Table 6 95
CITY OF LINO LAKES, MINNESOTA
— TABLE OF CONTENTS
Page
Reference Number
Principal Property Taxpayers Table 7 96
Property Tax Levies and Collections – Last Ten Fiscal Years Table 8 97
Ratios of Outstanding Debt by Type Table 9 99
Direct and Overlapping Governmental Activities Debt Table 10 101
Legal Debt Margin Information Table 11 102
Demographic and Economic Statistics Table 12 104
Principal Employers, Current Year and Nine Years Ago Table 13 105
Full -Time Equivalent Employees by Type Table 14 106
_ Operating Indicators by Function/Program Table 15 108
Capital Asset Statistics by Function/Program Table 16 110
I.
INTRODUCTORY
SECTION
— CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2007
WIWI
Mayor:
John Bergeson
Elected Officials
Term Expires
December 31, 2007
— Council Members:
Donna Carlson December 31, 2007
Daniel Stoltz December 31, 2007
Jeff O'Donnell December 31, 2009
Jeff Reinert December 31, 2009
Appointed Personnel
City Administrator Gordon Heitke
Director of Administration Daniel Tesch
Director of Finance Alan Rolek
Director of Public Safety David Pecchia
Director of Community Development Michael Grochala
— Director of Public Service Rick DeGardner
City of Lino Lakes Organizational Chart
Citizens
Honorable Mayor
and
City Council
Commissions
Cable
— Parks and Recreation
— Economic Development
- Planning and Zoning
Fire
— Environmental
City Administrator
City Clerk
Professional Consultants
1
Engineering
Attomey
1
Fiscal
1
Public Services
1
Public Safety
Parks
Public Works
Recreation
Administration
Police
Emergency Management
Community Development
Human Resources
Administrative Services
2
1
Finance
Planning
Economic Development
Engineering
Environmental Services
Inspections
Accounting
Management Infomration Systems
-J Utility Billing
Imm
June 1, 2008
Honorable Mayor
Members of the City Council
Citizens of the City of Lino Lakes, Minnesota
Vow
Minnesota State law requires that cities over 2,500 population publish within six months of the close of each
fiscal year a complete set of financial statements presented in conformity with generally accepted accounting
principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed
certified public accountants and submit them to the state auditor. Pursuant to that requirement, we hereby issue
the comprehensive annual financial report of the City of Lino Lakes, Minnesota for the fiscal year ended
- December 31, 2007.
This report consists of management's representations concerning the finances of the City of Lino Lakes.
Consequently, management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these representations, management
of the City of Lino Lakes has established a comprehensive internal control framework that is designed both to
▪ protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the City of Lino Lakes' financial statements in conformity with GAAP. Because the cost of
internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has
been designed to provide reasonable rather than absolute assurance that the financial statements will be free from
material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial
report is complete and reliable in all material respects.
The City of Lino Lakes' financial statements have been audited by LarsonAllen LLP, a firm of licensed certified
public accountants. The goal of the independent audit was to provide reasonable assurance that the financial
statements of the City for the fiscal year ended December 31, 2007, are free of material misstatement. The
▪ independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; assessing the accounting principles used and significant estimates made by management;
and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the
audit that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements
for the fiscal year ended December 31, 2007, are fairly presented in conformity with GAAP. The independent
auditor's report is presented as the first component of the financial section of this report.
IMMO
GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic
financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is
designed to complement MD &A and should be read in conjunction with it. The City of Lino Lakes' MD &A can
be found immediately following the report of the independent auditors.
6O0 Town Center Parkway, ino Lakes, Minnesota 55014 -1182
Phone: 651- 982 -2400 • Fax: 631- 982 -2499
Profile of the Government
The City of Lino Lakes, incorporated in 1955, is a growing community in the southeast corner of the County of
Anoka. It covers an area of 33 square miles and has a population of approximately 20,018. The population has
more than doubled from the 1990 census figure of 8,807 and has grown by 19% since 2000. Within the City's
borders lies the 2,550 acre Rice Creek Chain of Lakes Regional Park. Access to St. Paul and Minneapolis is
provided by I -35W and I -35E.
The City Charter, as amended, establishes a mayor - council form of government and grants the city council full
policy- making and legislative authority to the mayor and four council members. The city council is responsible,
among other things, for passing ordinances, adopting the budget, appointing committees, and hiring a city
administrator. The city administrator has the responsibility of carrying out the policies and ordinances of the city
council, for overseeing the day -to -day operation of the city. The city council is elected at -large on a non - partisan
basis, with council members serving four -year terms and the mayor serving a two -year term. Elections are held
every two years with two council seats and the mayor being up for election each election cycle.
The City provides a full range of municipal services. These services include: general government, public safety
(police & fire), public works (streets & fleet), parks and recreation, conservation of natural resources
(environmental & solid waste abatement), public improvements, providing and maintaining sanitary and storm
sewer, water infrastructure, and two enterprise funds, the water and sewer funds.
The annual budget is the foundation for the City of Lino Lakes' financial planning and control. All divisions are
required to submit appropriations requests to the city administrator for review and consolidation into a proposed
budget. The city administrator is responsible for submitting the proposed annual budget to the City Council in
August of each year. The city council is required to hold a public hearing on the proposed budget and to adopt by
resolution a final budget and certify it no later than December 28. The budget amounts cannot increase beyond
the estimated receipts except to the extent that actual receipts exceed the estimate. Division directors may make
transfers of appropriations within a department, but transfers of appropriations between departments require
council approval. Budget -to- actual comparisons for the general fund and the recreation program fund, the only
funds for which an annual budget has been adopted, are provided in this report beginning on pages 54 and 76,
respectively.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which the City of Lino Lakes operates.
Local economy. The economic development effort established in 1993 by the city council has made an impact in
the diversity of the City's tax base. Since 1993, the city has added more than $108 million in additional
commercial/industrial market value. Development of the Apollo Business Park on I -35W is nearly completed,
with a Pomp's Tire building completed in 2006 and a Hampton Inn hotel completed during 2007. The Clearwater
Creek Development Center on I -35E continues to attract industrial development. The commercial retail center on
Lake Drive and Apollo Drive in the Town Center area, known as the Lino Lakes Marketplace, has continued to
develop. The two anchor tenants, Target and Kohl's, were completed and opened in 2002. A Dairy Queen Grill
`n Chill restaurant was completed and opened in 2003, and a Discount Tire store opened in mid -2004. Two retail
buildings of approximately 6,000 square feet each were added to the area during 2005. A Wells Fargo branch
bank was also constructed in this area during 2005 and opened in early 2006.
4
Reflecting the broader market trends nation -wide, building activity and development continued to soften during
2007. Building permits for new homes in 2007 numbered 92, about the same number that were issued in 2006
and down by over 50% from 2005.
IMMO
A 12,582 square foot building was built by Schwan's in the Marshan Industrial Park on the southwest quadrant of
I -35W and Lake Drive was completed in 2005, further contributing jobs and adding value to the city's growing
commercial/industrial tax base. Construction of a two -story office building at the intersection of Lake Drive and
—
Hodgson Road was completed in 2006 and will house E.G. Rud Surveyors and several other tenants.
Now The City initiated an Alternative Urban Areawide Review (AUAR) of property in excess of 4,000 acres in the
northeast quadrant of the city, which includes property in the I -35E corridor, to assess the impact of future
development scenarios in this area. The AUAR was completed and accepted by the City Council in October,
2005. The AUAR included the proposed Hardwood Creek development, a 360 acre master - planned mixed -use
development. If approved, the development would include approximately 1,100 dwelling units and 600,000
square feet of commercial/retail buildings and preserve 90 acres of green space.
Long -term financial planning. The city has entered into an agreement with Hartford Development LL, LLC, to
develop 40 acres in the southeast quadrant of I -35W and Lake Drive. This mixed -use development will occur
over a period of two to five years and will include up to 450 dwelling units, retail commercial business, a
-- community green and park and trail amenities and a 60 -unit motel. Anoka County is planning to locate a branch
library in close proximity to the development as well. Country Inn and Suites was completed and opened in
November, 2006. The YMCA, in partnership with the city, is also planning a facility within the development.
The City's participation in the YMCA will be $2.35 million of the $8.2 million project, plus land and
infrastructure. The City has issued G.O. Tax Abatement bonds to finance its contribution to this project, as well
as $4.0 million in conduit debt. The City has also secured a CDBG grant of $125,000 to be used toward a teen
center within the YMCA. Construction on the facility was completed during the year and the facility is opened in
mid -July, 2007.
To facilitate this development, street, streetscape, water, sewer, and storm water improvements have been
installed within the development area and assessed to the development. Improvements to the existing Lake Drive
and the construction of a new interchange at Interstate 35W and Lake Drive started in July, 2007. This
— construction will be completed by July 2008, with the bridge remaining open throughout the construction period.
Engineering estimates for these improvements is estimated at approximately $11.1 million and will be financed
through the joint efforts of MNDOT, Anoka County and the City of Lino Lakes. The City has issued $4,215,000
in G.O. Tax Increment bonds and will use tax increment financing and Minnesota State Aid funds to finance its
portion of the project cost. It is acknowledged that this development will result in additional ongoing costs
involved in servicing and maintaining the streets and public areas, which will be addressed in future operating
budgets.
The city's five -year financial plan, adopted in January, 2008, identifies street and utility improvements totaling
$23,287,990 over the period of 2008 through 2012. These improvements are anticipated to be funded through a
— number of funding sources, including special assessments, municipal state aid road funds, the area and unit trunk
fund, the stormwater management fund and voter - approved tax levies. Also included in the final year of the plan
is a feasibility study for a new public works facility. Scheduled capital equipment and office equipment needs
and the financing for those needs are also included in the plan. The five -year plan also includes funding
projections for operations and operating impacts for the period of 2008 -2012.
5
Cash management policies and practices. The City's policy is to invest all available moneys at competitive
rates in accordance with Minnesota law. Investments are made by minimizing credit and market risks while
maintaining a competitive yield. Funds are invested in certificates of deposit, commercial paper and U.S.
government agencies. Cash is pooled in one account to provide maximum return. The City Council reviews the
investment policy annually and last amended it in 1998. The City has implemented the Government Accounting
Standards Board (GASB) Statement No. 40 relating to Deposit and Investment Risk Disclosures and amending
GASB Statement No. 3, which can be found in the Notes to the Financial Statements beginning on page 33.
Cash temporarily idle during the year was invested in certificates of deposit, commercial paper, and obligations
of the U.S. Treasury. The City's investment policy's primary objective is safety of principal. Therefore, all
deposits were either insured by Federal depository insurance or were collateralized as required by State Statute.
Due to the weakened economy, a low interest rate environment has persisted over the few years and has had a
significant impact on the city's investment earnings. The average yield on investments for 2007 was 5.56 %.
Investment income includes positive or negative changes in the fair value of investments. Changes in fair value
during the current year, however, do not necessarily represent trends that will continue; nor is it always possible
to realize such amounts, especially in the case of temporary changes in the fair value of investments the city
intends to hold to maturity.
Risk management. The City's general property, liability and worker's compensation coverage is provided
through the League of Minnesota Cities Trust (LMCIT).
At the beginning of the insurance year, the city deposits with LMCIT a premium determined by calculating
estimated payroll and applying experience modification ratios. An audit is performed at the end of the insurance
year, which may produce a refund or an adjustment due. LMCIT's reserves and rates are reviewed annually by an
actuary to assure that the program remains financially strong.
Pension benefits. The City of Lino Lakes participates in a statewide defined benefit pension plan administered
by the Public Employees Retirement Association of Minnesota (PERA). All full -time and part-time employees
are covered by PERA. PERA administers the Public Employees Retirement Fund (PERF) which is a cost - sharing,
multiple - employer retirement plan. A plan description and funding policy are included in the Notes to the
Financial Statements beginning on page 33.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awards the Certificate
of Achievement for excellence in financial reporting to cities that meet certain criteria. The City of Lino Lakes
received this award for its comprehensive annual financial report for the year ended December 31, 2006. This
marks the tenth consecutive year that the city has received this prestigious award. A governmental unit must
publish an easily readable and efficiently organized comprehensive annual financial report, the contents of which
conform to program requirements. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2007 report to
GFOA for consideration of the Certificate of Achievement for Excellence in Financial Reporting. We believe our
current report continues to conform to the high standards of the Certificate program.
The timely preparation of this report could not have been accomplished without the dedicated services of the
Finance Department, auditors and other City staff.
6
moor
NM
I also want to express my appreciation to the Mayor and City Council for their support for maintaining the
highest standard of professionalism in the management of the financial operation of the City.
Respectfully submitted,
Alan J. Rolek
Director of Finance
7
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lino Lakes
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2006
A Certificate of Achievement for Excellence. in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
8
4e04,01,-,
Executive Director
II.
FINANCIAL
SECTION
INDEPENDENT AUDITORS' REPORT
Honorable Mayor and
Members of the City Council
• City of Lino Lakes, Minnesota
We have audited the accompanying financial statements of the governmental activities, the business -type
• activities, each major fund, and the aggregate remaining fund information of the City of Lino Lakes, Minnesota
as of and for the year ended December 31, 2007, which collectively comprise the City's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of the City's
— management. Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining
fund information of the City of Lino Lakes, Minnesota as of December 31, 2007, and the respective changes in
financial position and cash flows, where applicable, thereof and for the year then ended in conformity with U.S.
generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated May 16, 2008 on our
consideration of the City of Lino Lakes Minnesota's internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The
—
purpose of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be considered in assessing the results of our audit.
The management's discussion and analysis and budgetary comparison information as listed in the table of
— contents are not a required part of the basic financial statements but are supplementary information required by
U.S. generally accepted accounting principles. We have applied certain limited procedures, which consisted
principally of inquires of management regarding the methods of measurement and presentation of the required
— supplementary information. However, we did not audit the information and express no opinion on it.
9
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The accompanying supplementary information, such as the
introductory section, combining fund financial statements, supplementary financial information and statistical
section listed in the table of contents are presented for purposes of additional analysis and are not a required part
of the basic financial statements. Such information, except for the introductory and statistical sections on which
we express no opinion, has been subjected to the auditing procedures applied in our audit of the basic financial
statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements
taken as a whole.
Minneapolis, Minnesota
May 16, 2008
10
LarsonAllen LLP
zip
Omer
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2007
As management of the City of Lino Lakes, Minnesota, we offer readers of the City of Lino Lakes' financial
statements this narrative overview and analysis of the financial activities of the City of Lino Lakes for the
fiscal year ended December 31, 2007. We encourage readers to consider the information presented here
in conjunction with additional information that we have furnished in our letter of transmittal, which can be
found on pages 3 -7 of this report.
FINANCIAL HIGHLIGHTS
• The assets of the City of Lino Lakes exceeded its liabilities at the close of the most recent fiscal
year by $91,353,906 (net assets). Of this amount $14,403,511 (unrestricted net assets) may be
used to meet the City's ongoing obligations to citizens and creditors in accordance with the City's
fund designations and fiscal policies.
• The City's total net assets increased by $217,269.
• As of the close of the current fiscal year, the City of Lino Lakes' governmental funds reported
combined ending fund balance of $19,189,984, an increase of $3,034,602 in comparison with the
prior year. Approximately 68% of this total amount, or $13,870,077 is available for spending at the
City's discretion (unreserved fund balance).
• At the end of the current fiscal year, unreserved fund balance for the general fund was
$5,356,272, or 62% of total general fund expenditures.
• The City of Lino Lakes' total bonded debt increased by $387,000 (1.5 percent) during the current
fiscal period. The key factors for the change include the 1996B Water Revenue bonds that were
called and retired in February, 2007, and the issuance of the 2007A Tax Increment Financing
bonds.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City of Lino Lakes' basic
financial statements. The City of Lino Lakes' basic financial statements comprise three components:
1. Government -wide financial statements
2. Fund financial statements
3. Notes to the financial statements
This report also contains other supplementary information in addition to the basic financial statements
themselves.
Government -wide financial statements The government -wide financial statements are designed to
provide readers with a broad overview of the City of Lino Lakes' finances, in a manner similar to private -
sector business.
The statement of net assets presents information on all of the City of Lino Lakes' assets and liabilities,
with the difference between the two reported as net assets. Over time, increases or decreases in net
assets may serve as a useful indicator of whether the financial position of the City of Lino Lakes is
improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused compensated absences).
11
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2007
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Government -wide financial statements (Continued) Both of the government -wide financial statements
distinguish functions of the City of Lino Lakes that are principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions that are intended to recover all
or a significant portion of their costs through user fees and charges (business -type activities). The
governmental activities of the City of Lino Lakes include general government, public safety, public
services, parks, recreation and forestry, conservation of natural resources and community development.
The business -type activities of the City of Lino Lakes include a water utility and sewer utility.
The government -wide financial statements can be found on pages 20 -22 of this report.
Fund financial statements A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City of Lino Lakes, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -
related legal requirements. All of the funds of the City of Lino Lakes can be divided into two categories:
governmental funds and proprietary funds.
Governmental funds Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However, unlike the
government -wide financial statements, governmental fund financial statements focus on near -term inflows
and outflows of spendable resources, as well as on balances of spendable resources available at the end
of the fiscal year. Such information may be useful in evaluating a government's near -term financing
requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long -term impact of the government's near -term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental functions and governmental activities.
The City of Lino Lakes maintains forty individual governmental funds. Information is presented separately
in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the General fund, G.O. Improvement Bonds 2005A fund,
Area and Units Charge fund, and Legacy Woods Edge Improvement fund, all of which are considered to
be major funds. Data from the other thirty-six governmental funds are combined into a single, aggregate
presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form
of combining statements elsewhere in this report.
The City of Lino Lakes adopts an annual appropriated budget for its general and program recreation
special revenue funds. A budgetary comparison statement has been provided for these funds to
demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 25 through 28 of this report.
Proprietary funds The City of Lino Lakes maintains two proprietary type funds. Enterprise funds are used
to report the same functions presented as business -type activities in the government -wide financial
statements. The City of Lino Lakes uses enterprise funds to account for its sewer and water utilities.
The proprietary fund statements provide the same type of information as the government -wide financial
statements, only in more detail. The proprietary fund financial statements provide separate information for
the sewer fund and the water fund, which are considered to be major funds of the City of Lino Lakes. The
basic proprietary fund financial statements can be found on pages 29 through 31 of this report.
12
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2007
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Notes to the financial statements The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements. The notes to
the financial statements can be found on pages 33 -53 of this report.
Other information The combining statements and schedules referred to earlier in conjunction with
nonmajor govemmental funds can be found on pages 62 -75 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position.
The City of Lino Lakes' assets exceeded liabilities by $91,353,906 at the close of the most recent fiscal
year, an increase of $217,269 from the previous year.
By far the largest portion of the City of Lino Lakes' net assets (73 percent) reflects its investment in capital
assets (e.g. land, buildings, machinery, equipment, and infrastructure), Tess any related debt used to
acquire those assets that is still outstanding. The City of Lino Lakes uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although the City of
Lino Lakes' investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
Condensed versions of the statements of net assets at December 31, 2007 and 2006 are as follows:
Current and Other Assets
Capital Assets
Total Assets
Noncurrent Liabilities Outstanding
Other Liabilities
Total Liabilities
Net Assets
Invested in Capital Assets, Net
of Related Debt
Restricted
Unrestricted
Total Net Assets
Govemmental Activities
2007 2006
$ 30,270,371 $ 27,167,139
49,686,700 51,159,427
79,957,071 78, 326, 566
24, 821,020
1,682, 903
26,503,923
22,410,771
1,145,647
23,556,418
Business -Type Activities
2007 2006
$ 8,193,865 $ 8,772,775
31,671,820 31,591,370
39,865,685 40,364,145
1,884,869
80,058
1,964,927
Total
3,897,167
100,489
3,997,656
2007
$ 38,464,236
81,358,520
119, 822, 756
26,705,889
1,762,961
2006
$ 35,939,914
82,750,797
118,690,711
28,468,850
26,307,938
1,246,136
27,554,074
36,789,153 29,549,174 29,836,775 29,485,942 66,625,928 59,035,116
10,324,467 10,704,508 - 10,324,467 10,704,508
6,339,528 14,516,466 8,063,983 6,880,547 14,403,511 21,397,013
$ 53,453,148 $ 54,770,148 $ 37,900,758 $ 36,366,489 $ 91,353,906 $ 91,136,637
Of the remaining balance of the City of Lino Lakes' net assets, restricted net assets (11 percent) are to be
used for debt service requirements and a nonexpendable environmental fund. Unrestricted net assets (16
percent) may be used to meet the government's ongoing obligations to citizens and creditors.
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2007
At the end of the current fiscal year, the City of Lino Lakes is able to report positive balances in all three
categories of net assets, both for the government as a whole, as well as for its separate governmental and
business -type activities.
Governmental activities Governmental activities decreased the City of Lino Lakes' net assets by
$1,317,000. Transfers to Business -Type activities and depreciation of capital assets under the full accrual
basis of accounting were the primary reasons for this decrease.
Business -type activities Business -type activities increased the City of Lino Lakes' net assets by
$1,534,269. Operating income, transfers from governmental activities and developers' contribution of
infrastructure assets to the water and sewer funds accounted for a significant portion of that increase.
Condensed statements of revenues, expenses, and changes in net assets highlights are as follows for the
years ended December 31, 2007 and 2006:
Governmental Activities
Business -Type Activities Total
2007 2006 2007 2006 2007 2006
REVENUES
Program Revenues
Charges for Services $ 1,766,331 $ 1,570,002 $ 2,661,875 $ 2,566,874 $ 4,428,206 $ 4,136,876
Operating Grants and Contributions 851,791 643,749 - - 851,791 643,749
Capital Grants and Contributions 7,189,346 5,963,204 80,750 1,535,631 7,270,096 7,498,835
General Revenues
Property Taxes 8,633,690 8,128,684 8,633,690 8,128,684
Franchise Taxes 150,630 140,408 - 150,630 140,408
Other Taxes 960 852 - 960 852
Contributions Not Restricted to
Specific Programs 256,877 - - 256,877
Unrestricted Investment Earnings 864,578 713,794 365,822 253,787 1,230,400 967,581
Gain on Disposal of Capital Assets 17,424 33,217 - 17,424 33,217
Total Revenues 19,731,627 17,193,910 3,108,447 4,356,292 22,840,074 21,550,202
EXPENSES
General Government 2,197,672 2,886,825 2,197,672 2,886,825
Public Safety 3,730,504 3,516,376 - 3,730,504 3,516,376
Public Service 10,580,560 3,871,968 - - 10,580,560 3,871,968
Parks, Recreation and Forestry 1,357,133 1,162,458 - 1,357,133 1,162,458
Conservation of Natural Resources 183,420 156,592 - 183,420 156,592
Community Development 1,122,802 691,880 1,122,802 691,880
Interest on Long -Term Debt 980,849 926,021 - 980,849 926,021
Water - - 1,170,902 976,575 1,170,902 976,575
Sewer - 1,298,963 1,228,123 1,298,963 1,228,123
Total Expenses 20,152,940 13,212,120 2,469,865 2,204,698 22,622,805 15,416,818
CHANGE IN NET ASSETS
BEFORE TRANSFERS (421,313) 3,981,790 638,582 2,151,594 217,269 6,133,384
Transfers (895,687) (299,725) 895,687 299,725 -
CHANGE IN NET ASSETS (1,317,000) 3,682,065 1,534,269 2,451,319 217,269 6,133,384
Net Assets - Beginning of Year 54,770,148 51,088,083 36,366,489 33,915,170 91,136,637 85,003,253
NET ASSETS - END OF YEAR
$ 53,453,148 $ 54,770,148 $ 37,900,758 $ 36,366,489 $ 91,353,906 $ 91,136,637
14
MINN
UMW
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2007
Below are specific graphs that provide comparisons of the government activities' direct program revenues
with their expenditures. Any shortfalls in direct revenues are primarily supported by property tax levy or
general state aid.
Expenses and Program Revenues — Governmental Activities
$12,000,000
$10,000, 000
$8,000, 000
$6,000,000
$4,000,000
$2,000,000
$-
9o�et��e�i J� \\G #k8 oGSe�\oes a�aEotes�y��esoJ`Ge eJe \oQ�e`'. $ c�`de 'ct
Geoeta� P P� dee'ON ����� J��� d estop \o
Pa ce e� •oco CPS \�.∎
cps s
"'Expenses
■Revenues
Revenues by Source — Governmental Activities
Unrestricted grants and
contributions
4% \\
Franchise taxes
1%
r—
Property taxes
42%
Unrestricted investment
earnings
4%
Other
0%
Charges for services
9%
Operating grants and
contributions
4%
\ Capital grants and
\— contrbutions
36%
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2007
Below are specific graphs that provide comparisons of the business -type activities' direct program
revenues with their expenditures. Excess revenues are retained within each fund until such time that
capital replacement is needed.
Expenses and Program Revenues — Business -type Activities
$1,600,000
$1,400,000
$1,200,000
$1, 000,000
$800,000
$600,000
$400,000
$200,000
$-
Water
Sewer
['Expenses
■Revenues
Revenues by Source — Business -type Activities
Capital grants and
contributions
3%
Other
12%
16
1
Charges for services
85%
IMMO
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2007
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the City of Lino Lakes uses fund accounting to ensure and demonstrate compliance with
finance related legal requirements.
Governmental Funds The focus of the City of Lino Lakes' governmental funds is to provide information
on near -term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City of Lino Lakes' financing requirements. In particular, unreserved fund balance may
serve as a useful measure of a government's net resources available for spending at the end of the fiscal
year.
As of the end of the current fiscal year, the City of Lino Lakes' governmental funds reported combined
ending fund balances of $19,189,984, an increase of $3,034,602, or 19 %, over the previous year.
Approximately 68% of this total amount, or $13,870,077, constitutes unreserved fund balance, which is
available for spending at the government's discretion. The remainder of fund balance is reserved to
indicate that it is not available for new spending because it has already been committed 1) to liquidate
contracts and purchase orders of the prior period ($183,680), 2) to pay debt service ($3,925,402), 3) to
fund interfund advances ($885,825), 4) to fund environmental improvements ($100,000), or for long -term
notes receivable ($225,000).
The general fund is the primary operating fund of the City of Lino Lakes. At the end of the current fiscal
year, unreserved fund balance of the general fund was $5,356,272, while the total fund balance was
$5,538,031. As a measure of the general fund's liquidity, it may be useful to compare unreserved fund
balance and total fund balance to total fund expenditures. Unreserved fund balance represents 62 percent
of total general fund expenditures, while total fund balance represents 64 percent of that same amount.
The fund balance of the City of Lino Lakes' general fund increased by $47,797 during the current fiscal
year. A soft real estate market reduced building activities which significantly decreased permit revenue;
however, higher investment earnings were realized due to a rising rate environment during the first 9
months of the year. Reduced expenditures, primarily for personal services, offset the reduced revenues,
thereby contributing toward the increase in fund balance. Overall, the general fund's revenues were within
2 percent of the amended budget, while expenditures were 4% below budgeted levels.
The G.O. improvement bonds 2005A fund has a total fund balance of $510,276, all of which is reserved
for the retirement of related debt. This is related to the bonds issued for the Legacy Woods Edge
improvement project.
The area and unit charge fund has a total fund balance of $2,471,616, of which $885,825 is reserved for
advances to other funds, and $1,585,791 is unreserved and available for financing capital improvements.
The fund balance during the current year decreased by was $127,974.
The Legacy Woods Edge improvement fund balance increased by $2,979,088, to $3,245,015. This is
primarily due to the issuance of G.O. Tax Increment bonds to finance the reconstruction of the 1 -35
W /Lake Drive interchange.
Proprietary funds The City of Lino Lakes' proprietary funds provide the same type of information found in
the government -wide financial statements, but in more detail.
The water fund has total net assets at year end of $16,356,188, of which $2,953,267 are unrestricted. The
increase in net assets of $1,123,612 was primarily due to contributions from private sources and the
primary government, an operating transfer from a capital projects fund and from operating income.
Total net assets in the sewer fund at the end of 2007 were $21,544,570, of which $5,110,716 was
unrestricted. Net assets increased $410,657 during the current year resulting primarily from operating
income and contributions from private sources.
The water and sewer rates remained the same in 2007 as in 2006. A rate study was authorized in June,
2007, and is expected to be accepted in 2008. Rates are expected to be adjusted beginning in 2009.
17
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2007
GENERAL FUND BUDGETARY HIGHLIGHTS
The original budget was amended ten times during the year reflecting donations and grants received
primarily for police personnel and equipment, and reallocating resources within the original budget.
Revenues were $175,993 under budget. Property Taxes, and the corresponding Market Value Credit,
were lower due to delinqencies in tax payments. Lower building activity and, therefore, fewer building
permits being issued was the largest contributing factor. State intergovernmental revenues for police
PERA aid were well over budgeted revenue for the year due to increased state funding in these areas.
Local government grants were slightly under budget due to lower grant funds allocated by the granting
entity. Investment earnings, due to rising interest rates were also significantly over budget. Public safety
charges for service were also well over budget due to greater than expected traffic control contracts. Fines
and forfeitures were over budgeted amounts to to Operation Nitecap and other programs aimed at
increased patrolling for vehicular violations. Expenditures came in under the budgeted amounts by
$319,917 due mainly to lower than expected personal services costs. In spite of personnel savings,
energy costs for fuels and electricity were higher than budgeted amounts. There were also net transfers
from the general fund of $791,927. This resulted in a net fund balance increase of $47,797 for the fiscal
year.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets The City of Lino Lakes' investment in capital assets for its governmental and business -
type activities as of December 31, 2007, amounts to $81,358,520 (net of accumulated depreciation). This
investment in capital assets includes land, buildings, office equipment and furniture, vehicles, machinery
and equipment, other capital assets, and infrastructure. This represents a decrease in the City of Lino
Lakes' investment in capital assets (net of accumulated depreciation) of 1.7 percent. This decrease is
entirely within the governmental activities and is attributable to the depreciation of constructed streets,
underground infrastructure and vehicles. Within the business -type activities the most significant increases
occurred in infrastructure installation in relation to the water and sewer funds.
Capital Assets at Year -End
(Net of Accumulated Depreciation)
Governmental Activities Business -Type Activities Total
2007 2006 2007 2006 2007 2006
Land $ 2,809,059 $ 2,809,059 $ $ $ 2,809,059 $ 2,809,059
Construction in progress 5,738,921 5,066,936 13,054 - 5,751,975 5,066,936
Buildings 4,376,812 4,593,749 4,376,812 4,593,749
Office Equipment and Furniture 491,145 514,309 - 491,145 514,309
Vehicles 1,157,749 951,072 1,157,749 951,072
Machinery and Shop Equipment 246,652 291,928 132,135 109,244 378,787 401,172
Other Equipment 391,712 408,798 391,712 408,798
Infrastructure 34,474,650 36,523,576 31,526,631 31,482,126 66,001,281 68,005,702
Capital Assets, Net $ 49,686,700 $ 51,159,427 $ 31,671,820 $ 31,591,370 $ 81,358,520 $ 82,750,797
Additional information on the City's capital assets can be found in the notes to the financial statements on
pages 33 -53.
18
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2007
CAPITAL ASSET AND DEBT ADMINISTRATION (CONTINUED)
Long -term debt At the end of the current fiscal year, the City of Lino Lakes had total bonded debt
outstanding of $25,944,000. Of this amount $11,569,000 comprises tax supported debt, $12,520,000 is
special assessment debt and $1,855,000 is revenue supported debt. All outstanding debt carries the
general obligation backing for which the city is liable in the event of default by the property owners subject
to the specific taxes, special assessments or revenues pledged to the retirement of the debt.
Outstanding Debt at Year -End
Govemmental Activities Business -Type Activities Total
2007 2006 2007 2006 2007 2006
G.O. Bonds $ 11,569,000 $ 7,747,000 $ $ $ 11,569,000 $ 7,747,000
G.O. Special Assessment Bonds 12,520,000 13,940,000 - 12,520,000 13,940,000
G.O. Revenue Bonds - - 1,855,000 3,870,000 1,855,000 3,870,000
Total Outstanding Debt $ 24,089,000 $ 21,687,000 $ 1,855,000 $ 3,870,000 $ 25,944,000 $ 25,557,000
The City of Lino Lakes' total bonded debt increased by $387,000 (1.5 percent) during the current fiscal
year. The key factors for the change include the 1996B Water Revenue bonds that were called and retired
in February, 2007, and the issuance of the 2007A Tax Increment Financing bonds.
The City of Lino Lakes received an Aa3 rating from Moody's Investors Service for general obligation debt.
More detailed information on the City's long -term liabilities is presented in the notes to the financial
statements.
Additional information on the City's Tong -term debt can be found in the notes to the financial statements on
pages 33 -53.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
• The unemployment rate for the City of Lino Lakes is currently 4.8 percent, which is a significant
increase from a rate of 4.1 percent a year ago. This compares favorably to the state's average
unemployment rate of 4.9 percent and the national average of 4.8 percent.
• Residential growth in the City has slowed significantly due to the general residential real estate
market downturn, with less than half the number of new home permits issued in 2007 and 2006
than in 2005. This is expected to decrease further and then level off in 2008, with the beginning of
a recovery of the housing market in 2009. This will have a significant impact on the growth of the
City's tax base for 2009 and beyond.
• Energy costs are expected to continue their steep increase over the coming months. This will
have an impact on the City's budget for the coming year and thereafter.
• Property tax reforms and State budget deficits have significantly impacted local government aid
payments the City of Lino Lakes receives. Local government aid and market value homestead
credit was reduced to zero for 2003, 2004, 2005 and 2006. While the City is exempted from local
government aid, market value homestead credit was received in 2007 and is expected to be
received in 2008.
• The Federal Reserve Board has decreased the federal funds rates significantly, which is expected
to result in decreases in the City's investment earnings.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Lino Lakes' finances for all of
those with an interest in the governments finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Director of
Finance, City of Lino Lakes, 600 Town Center Parkway, Lino Lakes, Minnesota, 55014.
19
BASIC FINANCIAL STATEMENTS
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2007
Statement 1
Governmental Business -type
Activities Activities
Total
ASSETS
Cash and investments $ 19,098,706 $ 7,637,890 $ 26,736,596
Cash and investments with escrow agent 108,210 108,210
Accrued interest receivable 281,701 281,701
Accounts receivable 209,741 363,500 573,241
Due from other governments 153,894 225 154,119
Taxes receivable 286,892 286,892
Special assessments receivable 9,386,721 113,203 9,499,924
Long -term notes receivable 225,000 - 225,000
Prepaid items 183,680 62,205 245,885
Unamortized bond issue costs 235,826 16,842 252,668
Permanently restricted cash and investments 100,000 - 100,000
Capital assets:
Land 2,809,059 - 2,809,059
Construction in progress 5,738,921 13,054 5,751,975
Other capital assets, net of depreciation 41,138,720 31,658,766 72,797,486
-- Total assets 79,957,071 39,865,685 119,822,756
LIABILITIES
Accounts payable 282,018 43,399 325,417
-
Salaries payable 140,141 8,349 148,490
Contracts and retainage payable 814,388 - 814,388
Accrued interest payable 444,534 28,310 472,844
'" Due to other governments 1,822 1,822
Non - current liabilities:
Due within one year 2,143,424 349,960 2,493,384
Due in more than one year 22,677,596 1,534,909 24,212,505
Total liabilities 26,503,923 1,964,927 28,468,850
NET ASSETS
Invested in capital assets, net of related debt 36,789,153 29,836,775 66,625,928
Restricted for:
Debt service 10,224,467 10,224,467
Environmental improvements - nonexpendable 100,000 100,000
Unrestricted 6,339,528 8,063,983 14,403,511
Total net assets $ 53,453,148 $ 37,900,758 $ 91,353,906
The accompanying notes are an integral part of these basic financial statements.
20
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF ACTIVITIES
Year Ended December 31, 2007
Functions/Programs
Governmental activities:
General government
Public safety
Public services
Parks, recreation and forestry
Conservation of natural resources
Community development
Interest on long -term debt
Total governmental activities
Business -type activities:
Water
Sewer
Total business -type activities
Total
Expenses
$ 2,197,672
3,730,504
10,580,560
1,357,133
183,420
1,122,802
980,849
20,152,940
1,170,902
1,298,963
2,469,865
$ 22,622,805
Program Revenues
Charges for
Services
$ 91,646
1,078,995
389,489
185,803
4,559
15,839
1,766,331
1,21 5,763
1,446,112
2,661,875
$ 4,428,206
Operating
Grants and
Contributions Contributions
Capital Grants and
$ 18,789 $
184,583
167,185 7,189,346
218,475
37,759
225,000
851,791 7,189,346
■
46,516
34,234
80,750
$ 851,791 $ 7,270,096
General revenues:
Taxes:
Property taxes, levied for general purpose
Franchise taxes
Other taxes
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Gain on disposal of capital assets
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning
Net assets - ending
The accompanying notes are an integral part of these basic financial statements.
21
Statement 2
Net (Expense) Revenue and Changes in Net Assets
Governmental Business -type
Activities Activities
Total
$ (2,087,237) $ $ (2,087,237)
(2,466,926) - (2,466,926)
(2,834,540) (2,834,540)
(952,855) (952,855)
(141,102) (141,102)
(881,963) - (881,963)
(980,849) (980,849)
(10,345,472) (10,345,472)
(10,345,472)
91,377 91,377
181,383 181,383
272,760 272,760
272,760 (10,072,712)
8,633,690 8,633,690
150,630 150,630
960 960
256,877 - 256,877
864,578 365,822 1,230,400
17,424 - 17,424
(895,687) 895,687
9,028,472 1,261,509 10,289,981
(1,317,000) 1,534,269 217,269
54,770,148 36,366,489 91,136,637
$ 53,453,148 $ 37,900,758 $ 91,353,906
22
CITY OF LINO LAKES, MINNESOTA
BALANCE SHEET - GOVERNMENTAL FUNDS
December 31, 2007
Assets
Cash and investments
Cash and investments with escrow agent
Accrued interest receivable
Accounts receivable
Due from other governmental units
Interfund receivable
Taxes receivable:
General
$ 5,029,617
281,397
130,465
152,394
75,947
G.O. Area and Legacy
Improvement Unit Woods Edge
Bonds 2005A Charge Improvement
$ 510,276 $ 1,615,563 $ 3,957,573
23,026
Delinquent 174,903
Due from county 53,509
Delinquent tax increment -
Special assessments receivable:
Delinquent 1,046,197 50,187
Deferred 4,041,381 2,199,953
Due from county 5,286
Long -term notes receivable - -
Prepaid items 181,759 -
Advances to other funds - 885,825
Total assets $ 6,079,991 $ 5,597,854 $ 4,779,840 $ 3,957,573
Liabilities and equity
Liabilities:
Interfund payable $ - $ $ - $
Accounts payable 227,386 9,406 21,758
Salaries payable 139,671
Contracts and retainage payable - 48,678 690,800
Due to other governmental units - -
Advances from other funds - -
Deferred revenue 174,903 5,087,578 2,250,140
Total liabilities 541,960 5,087,578 2,308,224 712,558
Fund balances:
Reserved
Reserved for prepaid items
Reserved for debt retirement
Reserved for advances to other funds
Reserved for environmental improvements
Reserved for long -term notes receivable
Unreserved:
Designated:
General fund
Special revenue funds
Capital projects funds
Undesignated reported in:
Capital projects funds
Permanent funds
Total equity and other credits
181,759
510,276
5,356,272
885,825
1,585,791 3,245,015
5,538,031 510,276 2,471,616 3,245,015
Total liabilities and equity $ 6,079,991 $ 5,597,854 $ 4,779,840 $ 3,957,573
The accompanying notes are an integral part of these basic financial statements.
23
Statement 3
Other Total
Governmental Governmental
Funds Funds
$ 8,085,677 $ 19,198,706
108,210 108,210
,s 304 281,701
56,250 209,741
1,500 153,894
75,947
21,768 196,671
6,380 59,889
30,332 30,332
18,821 1,115,205
2,022,650 8,263,984
2,246 7,532
225,000 225,000
1,921 183,680
885,825
$ 10,581,059 $ 30,996,317
75,947 $ 75,947
23,468 282,018
470 140,141
74,910 814,388
1,822 1,822
885,825 885,825
2,093,571 9,606,192
3,156,013 11,806,333
1,921 183,680
3,415,126 3,925,402
885,825
100,000 100,000
225,000 225,000
5,356,272
100,955 100,955
3,362,451 8,193,257
202,570 202,570
17,023 17,023
7,425,046 19,189,984
$ 10,581,059 $ 30,996,317
24
— CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET ASSETS
December 31, 2007
Statement 4
Total Fund Balances for Governmental Funds $ 19,189,984
Total net assets reported for governmental activities in the statement of net assets
is different because:
— Capital assets used in governmental funds are not financial resources and therefore are not reported in
the funds. Those assets consist of:
Land 2,809,059
Construction in progress 5,738,921
Buildings, Net of Accumulated Depreciation 4,376,812
Office Equipment and Furniture, Net of Accumulated Depreciation 491,145
Vehicles, Net of Accumulated Depreciation 1,157,749
Machinery and Shop Equipment, Net of Accumulated Depreciation 246,652
Other Equipment, Net of Accumulated Depreciation 391,712
Infrastructure, Net of Accumulated Depreciation 34,474,650 49,686,700
Some of the City's property taxes and special assessments will be collected after year -end, but are not
available soon enough to pay for the current period's expenditures, and therefore are reported as
deferred revenue in the governmental funds. 9,606,192
Bond issuance costs are reported as expenditures in the governmental funds and are shown net of
accumulated amortization on the statement of net assets as prepaid items. 235,826
Interest on long -term debt is not accrued in governmental funds, but rather is recognized as an
expenditure when due. Accrued interest for general obligation bonds is included in the statement of
net assets.
Long -term liabilities that pertain to governmental funds, including bonds payable, are not due and
•s payable in the current period and therefore are not reported as fund liabilities. All liabilities - both
current and long -term - are reported in the statement of net assets. Balances at year -end are:
(444,534)
sm. Bonds payable (24,089,000)
Unamortized premiums (138,410)
Unamortized discounts 42,294
Compensated absence payable (635,904) (24,821,020)
Total Net Assets of Governmental Activities $ 53,453,148
The accompanying notes are an integral part of these basic financial statements.
25
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS
Year Ended December 31, 2007
G.O. Area and Legacy
Improvement Unit Woods Edge
Revenue: General Bonds 2005A Charge Improvement
General property taxes $ 7,249,377 $ - $ $
Tax increments
Licenses and permits 694,435
Intergovernmental 657,674 - 4,994,021
Special assessments 3,103 364,730 1,027,869
Charges for services 340,588 229,910
Fines and forfeits 139,932
Investment earnings 206,117 28,175 138,837 68,874
Refunds and reimbursements 16,274 - -
Miscellaneous 152,985 50
Total revenue 9,460,485 392,905 1,396,616 5,062,945
Expenditures:
Current:
General government 1,929,351
Public safety 3,513,460 -
Public works 1,287,734 401,942 5,736,957
Parks, recreation and forestry 866,944 -
Conservation of natural resources 183,346
Community development 760,237
Capital outlay:
General government 2,611
Public safety 33,825
Public works 7,926 1,344,629
Parks, recreation and forestry 27,963
Conservation of natural resources 5,799
Community development 1,565
Debt service:
Principal 195,000
Interest and fiscal charges 273,180
Total expenditures 8,620,761 468,180 401,942 7,081,586
Revenue over (under) expenditures
839,724 (75,275) 994,674 (2,018,641)
Other financing sources (uses):
Transfer in 34,200 979,392
Transfer out (826,127) (1,122,648) (152,406)
Sale of property
Issuance of debt 4,196,541
Discount on bonds issued (25,798)
Total other financing sources (uses) (791,927) (1,122,648) 4,997,729
Net increase (decrease) in fund balance 47,797 (75,275) (127,974) 2,979,088
Fund balance
Beginning of year
Fund balance - December 31
5,490,234 585,551 2,599,590 265,927
$ 5,538,031 $ 510,276 $ 2,471,616 $ 3,245,015
The accompanying notes are an integral part of these basic financial statements.
26
Statement 5
Other Total
Governmental Governmental
Funds Funds
$ 861,254 $ 8,110,631
419,215 419,215
694,435
491,994 6,143,689
565,551 1,961,253
- 183,200 753,698
139,932
422,575 864,578
2,842 19,116
- 717,750 870,785
3,664,381 19,977,332
24,609 1,953,960
3,513,460
1,020,278 8,446,911
236,077 1,103,021
183,346
347,091 1,107,328
■ 19,535 22,146
169,951 203,776
317,005 1,669,560
77,264 105,227
5,799
1,565
1,778,000 1,973,000
664,715 937,895
4,654,525 21,226,994
(990,144) (1,249,662)
1,886,657 2,900,249
- (918,043) (3,019,224)
54,037 54,037
178,459 4,375,000
- (25,798)
- 1,201,110 4,284,264
210,966 3,034,602
7,214,080 16,155,382
$ 7,425,046 $ 19,189,984
■
27
CITY OF LINO LAKES, MINNESOTA Statement 6
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES
Year Ended December 31, 2007
Net Change in Fund Balances -Total Governmental Funds
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, assets are capitalized and the cost is allocated over their
estimated useful lives and reported as depreciation expense.
Capital outlays
Contributed capital assets
Capital contributions to business -type funds
Gain on disposal of capital assets
Proceeds from sales of capital assets
Depreciation expense
The governmental funds report bond proceeds as financing sources, while repayment
of bond principal is reported as an expenditure. In the statement of net assets,
however, issuing debt increases long -term liabilities and does not affect the statement
of activities and repayment of principal reduces the liability. Also, governmental
funds report the effect of issuance costs, premiums and discounts when debt is first
issued, whereas these amounts are deferred and amortized in the statement of
activities. Interest is recognized as an expenditure in the governmental funds when it
is due. In the statement of activities, however, interest expense is recognized as it
Wow accrues, regardless of when it is due. The net effect of these differences in the
treatment of general obligation bonds and related items is as follows:
Issuance of general obligation bonds
Issuance of equipment certificates
Bond discount
Bond issuance costs
Repayment of bond principal
NNW
Interest expense for general obligation bonds
Amortization of bond issuance costs
Amortization of bond premium
Amortization of bond discount
Delinquent and deferred property taxes and special assessments receivable will be
collected subsequent to year -end, but are not available soon enough to pay for the
current period's expenditures, and therefore are deferred in the governmental funds.
Deferred revenue - December 31, 2006
Deferred revenue - December 31, 2007
In the statement of activities, compensated absences are measured by the amounts
earned during the year. In the governmental funds, however, expenditures for these
items are measured by the amount of financial resources used (essentially, the
amounts actually paid). During fiscal year 2007, compensated absence payable
increased.
Change in Net Assets of Governmental Activities
The accompanying notes are an integral part of these basic financial statements.
$ 3,034,602
1,978,457
145,450
(776,712)
17,424
(54,037)
(2,783,309) (1,472,727)
(4,215,000)
(160,000)
25,798
39,917
1,973,000
(80,119)
(19,845)
19,120
(2,027) $ (2,419,156)
$ 10,014,771
9,606,192 $ (408,579)
(51,140)
$ (1,317,000)
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS - PROPRIETARY FUNDS
December 31, 2007
Statement 7
Water
Total
Sewer 2007
Assets
Current assets:
Cash and cash equivalents $ 2,745,671 $ 4,892,219 $ 7,637,890
Accounts receivable 163,773 199,727 363,500
Due from other governmental units 225 225
Due from county 271 271 542
Prepaid items 6,819 55,386 62,205
Unamortized bond issue costs 16,842 - 16,842
Total current assets 2,933,601 5,147,603 8,081,204
Non - current assets:
Special assessments, long term 112,661 112,661
Capital assets not being depreciated:
Construction in progress - 13,054 13,054
Capital assets being depreciated:
Buildings 48,690 - 48,690
Equipment 115,317 216,508 331,825
Water and sewer systems 18,992,909 20,817,569 39,810,478
Total capital assets 19,156,916 21,047,131 40,204,047
Less: allowance for depreciation (3,918,950) (4,613,277) (8,532,227)
Net capital assets 15,237,966 16,433,854 31,671,820
Total noncurrent assets 15,350,627 16,433,854 31,784,481
Total assets
Liabilities
18,284,228 21,581,457 39,865,685
Current liabilities:
Accounts payable 26,806 16,593 43,399
Salaries payable 4,546 3,803 8,349
Accrued interest payable 28,310 - 28,310
Bonds payable - current portion 325,000 325,000
Compensated absences payable - current portion 12,480 12,480 24,960
Total current liabilities 397,142 32,876 430,018
Non - current liabilities:
Bonds payable - long term 1,526,887 1,526,887
Compensated absences payable - long term 4,011 4,011 8,022
Total noncurrent liabilities 1,530,898 4,011 1,534,909
Total liabilities 1,928,040 36,887 1,964,927
Net assets
Invested in capital assets, net of related debt 13,402,921 16,433,854 29,836,775
Unrestricted 2,953,267 5,110,716 8,063,983
Total net assets $ 16,356,188 $ 21,544,570 $ 37,900,758
The accompanying notes are an integral part of these basic financial statements.
29
CITY OF LINO LAKES, MINNESOTA Statement 8
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - PROPRIETARY FUNDS
Year Ended December 31, 2007
Total
Water Sewer 2007
Operating revenue:
Charges for services $ 1,154,661 $ 1,426,262 $ 2,580,923
Hook -up charges 25,280 19,850 45,130
Water meter sales 30,967 30,967
Other operating revenue 4,855 4,855
Total operating revenue 1,215,763 1,446,112 2,661,875
Operating expenses:
- Personal services 161,073 161,989 323,062
Materials and supplies 368,561 23,798 392,359
Contractual services 86,970 110,247 197,217
- MCES sewer charges 536,211 536,211
Depreciation 389,412 431,211 820,623
Utilities 65,664 26,035 91,699
Other 16,689 9,472 26,161
Total operating expenses 1,088,369 1,298,963 2,387,332
Net income from operations 127,394 147,149 274,543
Other income (expense):
Investment earnings 125,436 240,386 365,822
Special assessments 10,416 134 10,550
Bond interest (77,246) (77,246)
Paying agent fees (5,287) (5,287)
Total other income (expense) 53,319 240,520 293,839
Net income before contributions and transfers 180,713 387,669 568,382
Contributions and transfers:
Contributions from private sources 36,100 34,100 70,200
Capital contributions from primary government 776,712 776,712
Transfer in 141,199 - 141,199
Transfer out (11,112) (11,112) (22,224)
Total contributions and transfers 942,899 22,988 965,887
Net income 1,123,612 410,657 1,534,269
Net Assets - January 1 15,232,576 21,133,913 36,366,489
-
Net Assets - December 31 $ 16,356,188 $ 21,544,570 $ 37,900,758
The accompanying notes are an integral part of these basic financial statements.
30
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
Year Ended December 31, 2007
Statement 9
Cash flows from operating activities:
Cash receipts from customers
Cash paid to suppliers
Cash paid to employees
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Transfers
Net cash flows from noncapital financing activities
Cash flows from capital and related financing activities:
Principal paid on revenue bonds
Proceeds from issuance of debt
Collection of special assessments
Interest and paying agent fees on revenue bonds
Acquisition of capital assets
Net cash flows from capital and related financing activities
Cash flows from investing activities:
Interest on investments
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating income to net cash
from operating activities:
Operating income
Adjustments to reconcile operating income to
net cash flows from operating activities:
Depreciation
Change in assets and liabilities:
Decrease (increase) in receivables
Decrease (increase) in prepaid items
Increase (decrease) in payables
Net cash flows from operating activities
Water
$ 1,195,247
(532,395)
(170,585)
492,267
130,087
130,087
(2,015,000)
28,189
(107,846)
(21,085)
(2,115,742)
125,436
(1,367,952)
4,113,623
$ 2,745,671
$ 127,394
389,412
(20,516)
(1,458)
(2,565)
$ 492,267
- Water lines in the amount of $812,812 were contributed to the Water Fund in 2007.
- Sewer lines in the amount of $34,100 were contributed to the Sewer Fund in 2007.
The accompanying notes are an integral part of these basic financial statements.
31
Sewer
Total
2007
$ 1,438,953 $ 2,634,200
(698,827) (1,231,222)
(159,096) (329,681)
581,030 1,073,297
(11,112)
(11,112)
(137)
(33,076)
(33,213)
118,975
118,975
(2,015,000)
28,052
(107,846)
(54,161)
(2,148,955)
240,386 365,822
777,091 (590,861)
4,115,128 8,228,751
$ 4,892,219 $ 7,637,890
$ 147,149
431,211
(7,159)
(4,445)
14,274
$ 581,030
$ 274,543
820,623
(27,675)
(5,903)
11,709
$ 1,073,297
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS - FIDUCIARY FUNDS
December 31, 2007
Statement 10
Cash and investments
Deposits receivable
Accounts payable
Deposits payable
glow
Assets
Total assets
Liabilities
2007
$ 1,048,783
10,520
$ 1,059,303
$ 31,301
1,028,002
Total liabilities $ 1,059,303
The accompanying notes are an integral part of these financial statements.
Wm
Imor
32
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Lino Lakes is a public corporation formed under Minnesota Statute 410. As such, the City is under home
rule charter regulations and applicable statutory guidelines.
The basic financial statements of the City of Lino Lakes have been prepared in conformity with U.S. generally
accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board
(GASB). The following is a summary of the significant accounting policies:
A. FINANCIAL REPORTING ENTITY
As required by U.S. generally accepted accounting principles, the financial statements of the reporting
entity include those of the City of Lino Lakes and its component units. A component unit is a legally
separate entity for which the primary government is financially accountable, or for which the exclusion of
the component unit would render the financial statements of the primary government misleading. The
criteria used to determine if the primary government is fmancially accountable for a component include
whether or not the primary government appoints the voting majority of the potential component unit's
board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or
burden with the potential component unit, or is fiscally depended upon by the potential component unit.
COMPONENT UNITS
In conformity with U.S. generally accepted accounting principles, the financial statements of component
units have been included in the financial reporting entity either as blended component units or as discretely
presented component units.
Immo
Blended Component Units ...
The Economic Development Authority (EDA) of Lino Lakes is an entity legally separate from the City.
However, for financial reporting purposes, the EDA is reported as if it were part of the City's operations
because the members of the City Council serve as commission members. The EDA does not issue separate
financial statements. The Housing and Redevelopment Authority (HRA) of Lino Lakes is an entity legally
separate from the City. However, for financial reporting purposes, the HRA is reported as if it were part of
the City's operations because the members of the City Council serve as commission members. The HRA has
not yet incurred any financial activity.
B. BASIC FINANCIAL STATEMENTS
1. Government -Wide Statements
The government -wide financial statements (i.e., the statement of net assets and the statement of activities)
display information about the primary government and its component units. These statements include the
financial activities of the overall City government, except for fiduciary activities. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately from
business -type activities, which rely to a significant extent on fees and charges to external parties for support.
As a general rule, the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this general rule are charges between the City's enterprise funds and various other
functions of government. Eliminations of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
33
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. BASIC FINANCIAL STATEMENTS (CONTINUED)
1. Government -Wide Statements (Continued)
In the government -wide statement of net assets, both the governmental and business -type activities columns:
(a) are presented on a consolidated basis by column; and (b) are reported on a full accrual, economic
resource basis, which recognizes all long -term assets and receivables as well as long -term debt and
obligations. The City's net assets are reported in three parts: (1) invested in capital assets, net of related
debt; (2) restricted net assets; and (3) unrestricted net assets. The City first utilizes restricted resources to
finance qualifying activities.
The statement of activities demonstrates the degree to which the direct expenses of each function of the
City's governmental activities and different business -type activity are offset by program revenues. Direct
•— expenses are those that are clearly identifiable with a specific function or activity. Program revenues
include: (1) fees, fines, and charges paid by the recipients of goods, services, or privileges provided by a
given function or activity; and (2) grants and contributions that are restricted to meeting the operational or
capital requirements of a particular function or activity. Revenues that are not classified as program
revenues, including all taxes, are presented as general revenues.
II Mar
2. Fund Financial Statements
The fund financial statements provide information about the City's funds, including its fiduciary funds and
blended component unit. Separate statements for each fund category (governmental, proprietary, and
fiduciary) are presented. The emphasis of governmental and proprietary fund financial statements is on
major individual governmental and enterprise funds, with each displayed as separate columns in the fund
fmancial statements. All remaining governmental and enterprise funds are aggregated and reported as
nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each party
receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment
earnings, result from nonexchange transactions or incidental activities.
The City reports the following major governmental funds:
General Fund
The general fund is the City's primary operating fund. It accounts for all fmancial resources of the general
government, except those required to be accounted for in another fund.
General Obligation Improvement Bonds 2005A Fund
The general obligation improvement bonds 2005A fund accounts for the accumulation of resources for, and
the payment of, interest, principal and related costs on general long -term debt.
Area and Unit Charge Fund
The area and unit charge fund accounts for the collection of water and sewer unit charges to be used for
debt payments and construction of infrastructure.
Legacy Woods Edge Improvement Fund
The Legacy Woods Edge Improvement fund accounts for construction costs related to infrastructure
improvements in the Legacy Woods Edge development
34
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. BASIC FINANCIAL STATEMENTS (CONTINUED)
2. Fund Financial Statements (Continued)
The City reports the following major proprietary funds:
Water Fund
The water fund accounts for customer water service charges that are used to fmance water operating
expenses.
Sewer Fund
The sewer fund accounts for customer water service charges that are used to fmance water operating
expenses.
Additionally, the City reports the following fiduciary funds:
Agency Funds - to account for assets held as an agent for individuals, private organizations, other
governmental units, and/or other funds. The City's agency fund accounts for pass - through contractor's
deposits relating to prospective developments.
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
The government -wide and proprietary fund fund financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting. Agency funds, which are included in the
Fiduciary Funds, do not have a measurement focus. Revenues are recorded when earned, and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenues in the year for which they are levied. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider have been met.
Private - sector standards of accounting and financial reporting issued on or before November 30, 1989,
generally are followed in both the government -wide and proprietary fund financial statements to the extent
that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards
Board. Governments also have the option of following subsequent private- sector guidance for their
business -type activities and enterprise funds, subject to this same limitation. The City has elected not to
follow subsequent private- sector guidance.
Governmental fund fmancial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. The City considers all revenues to be available if they are collected within 60
days after the end of the current period. Property and other taxes, licenses, and interest are all considered to
be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for
principal and interest on general long -term debt, compensated absences, and claims and judgments, which
are recognized as expenditures to the extent that they have matured. Proceeds of general long -term debt
and acquisitions under capital leases are reported as other financing sources. When both restricted and
unrestricted resources are available for use, it is the City's policy to use restricted resources first, then
unrestricted resources as they are needed.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (CONTINUED)
Amounts reported as program revenues include: 1. Charges to customers or applicants for goods, services,
or privleges provided, 2. operating grants and contributions, and 3. capital grants and contributions,
including special assessments.
Proprietary funds distinguish operating revenues and expenses from nonoperating item. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connections
with a proprietary fund's principal ongoing operations. The principal operating revenue of the City's
enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds
include the cost of sales and services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
D. BUDGETS
Budgets are adopted on a basis consistent with U.S. generally accepted accounting principles. Annual
appropriated budgets are adopted for the General Fund and the Program Recreation Special Revenue Fund.
Budgeted expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by
the City because it is not presently considered necessary to assure effective budgetary control or to facilitate
effective cash management.
E. LEGAL COMPLIANCE - BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The City Administrator submits to the City Council a proposed operating budget (including the General
Fund and Program Recreation Special Revenue Fund) for the fiscal year commencing the following
January 1. The operating budget includes proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can be
expended by each department based upon detailed budget estimates for individual expenditure
accounts.
4. The City Administrator is authorized to transfer appropriations within any department budget.
Additional interdepartmental or interfund appropriations and deletions are or may be authorized by the
City Council with fund (contingency) reserves or additional revenues.
5. Formal budgetary integration is employed as a management control device during the year for the
General Fund.
36
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. LEGAL COMPLIANCE — BUDGETS (CONTINUED)
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for the
Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and
calculate user charges. These debt service and budget amounts represent general obligation bond
indenture provisions and net income for operation and capital maintenance and are not reflected in the
financial statements.
7. A capital improvement program is reviewed periodically by the City Council for the Capital Project
Funds. However, appropriations for major projects are not adopted until the actual bid award of the
improvement. The appropriations are not reflected in the financial statements.
8. Expenditures may not legally exceed budgeted appropriations at the total fund level. Monitoring of
budgets is maintained at the expenditure category level (i.e., personal services, supplies; other services
and charges; capital outlay) within each activity.
9. The City Council may authorize transfer of budgeted amounts between City funds.
F. CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in investments
authorized by Minnesota Statutes. Earnings from investments are allocated to individual funds on the basis
of the fund's equity in the cash and investment pool.
The City provides temporary advances to funds that have insufficient cash balances by means of an advance
from another fund shown as interfund receivables in the advancing fund in the governmental fund financial
statements, and an interfund payable in the fund with the deficit, until adequate resources are received.
These interfund payables are eliminated for statement of net assets presentation.
Investments are stated at fair value and interest earnings are accrued at year -end.
For purposes of the statement of cash flows the Proprietary Fund considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. All of the cash and
investments allocated to the proprietary fund types have original maturities of 90 days or less. Therefore,
the entire balance in such fund types is considered cash equivalents.
Permanently restricted cash and investments represents the principal portion of resources received that must
be retained in a permanent fund. Only earnings from these funds may be used for purposes that support
environmental maintenance and improvements.
G. PROPERTY TAX CREDITS
Property taxes on homestead property (as defined by State Statutes) are partially reduced by property tax
credits. These credits are paid to the City by the State in lieu of taxes levied against homestead property.
The State remits these credits through installments each year. These credits are recognized as revenue by
the City at the time of collection.
37
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December (levy /assessment
date) of each year for collection in the following year. The County is responsible for billing and collecting
all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes
become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are
payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are
payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and
remitted to the City on or before July 15 and December 15 of the same year. Delinquent collections for
November and December are received the following January. The City has no ability to enforce payment of
property taxes by property owners. The County possesses this authority.
Within the governmental fund financial statements, the City recognizes property tax revenue when it
becomes both measurable and available to finance expenditures of the current period. In practice, current
and delinquent taxes and State credits received by the City in July, December and the following January are
recognized as revenue for the current year. Taxes and credits not received at the year end are classified as
delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City
in January is fully offset by deferred revenue because it is not available to finance current expenditures.
Deferred revenue in governmental activities is susceptible to full accrual on the government -wide
statements.
The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal
Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of the
taxable valuation of commercial/industrial real property to various taxing authorities within the defined
metropolitan area. The valuation "shared" is a portion of commercial/industrial property valuation growth
since 1971. Property taxes paid to the City through this formula for 2007 totaled $896,000. Receipt of
property taxes from this "fiscal disparities pool" does not increase or decrease total tax revenue.
I. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of special
assessment improvement projects in accordance with State Statutes. These assessments are collectible by
the City over a term of years usually consistent with the term of the related bond issue. Collection of annual
installments (including interest) is handled by the County Auditor in the same manner as property taxes.
Property owners are allowed to (and often do) prepay future installments without interest or prepayment
penalties.
Within the fund financial statements, the revenue from special assessments is recognized by the City when it
becomes measurable and available to finance expenditures of the current fiscal period. In practice, current
and delinquent special assessments received by the City are recognized as revenue for the current year.
Special assessments are collected by the County and remitted by December 31 (remitted to the City the
following January) and are also recognized as revenue for the current year. All remaining delinquent,
deferred and special deferred assessments receivable in governmental funding are completely offset by
deferred revenues. Deferred revenue in governmental activities is susceptible to full accrual on the
government -wide statements.
38
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
I. SPECIAL ASSESSMENT REVENUE RECOGNITION (CONTINUED)
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property
until full payment is made or the amount is determined to be excessive by the City Council or court action.
If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first
proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of
delinquent special assessments. Generally, the City will collect the full amount of its special assessments not
adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax
forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which
event the property is subject to such sale after five years.
J. INVENTORIES
The original cost of materials and supplies has been recorded as expenditures /expenses at the time of
purchase of both the Governmental and Proprietary Funds. These funds do not maintain material amounts of
materials and supplies.
K. INTERFUND RECEIVABLES/PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods provided
or services rendered. The year -end balances are classified as interfund receivables and payables on the
governmental fund balance sheets. The non - current portion of interfund loans are reported as "advances
to /from other funds." Advances between funds are offset by a fund balance reserve account in applicable
governmental funds to indicate they are not available for appropriation and are not expendable from
available financial resources.
L. CAPITAL ASSETS
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, sidewalks,
street lights, and similar items) are reported in the applicable governmental or business -type activities
columns in the government -wide financial statements. Capital assets exceeding the City's capitalization
threshold of $2,500 are recorded at historical cost or estimated historical cost if purchased or constructed.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects
are constructed. All existing City infrastructure has been capitalized regardless of date placed in service.
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with
accumulated depreciation reflected in the Statement of Net Assets. Capital assets are depreciated using the
straight -line method over their estimated useful lives. Since surplus assets are sold for an immaterial amount
when declared as no longer needed for City purposes, no salvage value is taken into consideration for
depreciation purposes. Useful lives vary from 3 to 30 years for Buildings, Office Furniture and Equipment,
Vehicles, Machine Shop and Equipment and Other assets, and 25 to 50 years for Infrastructure. Capital
assets not being depreciated include land and construction in progress.
39
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay
benefits. All vacation pay and the portion of sick pay allowable as severance pay is accrued as
incurred in the government -wide and proprietary fund financial statements. The current portion is
calculated based on historical trends.
N. LONG -TERM OBLIGATIONS
In the entity-wide financial statements, long -term debt and other long -term obligations are reported
as liabilities in the applicable governmental activities. Bond premiums and discounts are deferred
and amortized over the life of the bonds using the straight -line method. Bond issue costs, if
material, are amortized over the term of the related debt using the straight -line method.
In the governmental fund financial statements, bond premiums and discounts, as well as bond issue
costs are recognized during the current period. The face amount of the debt issue is reported as on
other financing source. Premiums received on debt issuances are reported as other financing
sources while discounts are reported as other financing uses. Issue costs are reported as debt
service expenditures.
O. FUND EQUITY
In the governmental fund financial statements, reservations of fund balance represent those
portions of fund equity not appropriable for expenditure or legally restricted by outside parties for
use for a specific purpose. Designated fund balances represent tentative plans for future use of
financial resources that are subject to change.
P. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures /expenses initially made
from it that are properly applicable to another fund, are recorded as expenditures /expenses in the
reimbursing fund and as reductions of expenditures or expenses in the fund that is reimbursed. All
other interfund transactions are reported as transfers.
All Interfund transactions are eliminated except for activity between governmental activities and
business -type activities for presentation in the entity-wide statements of net assets and statements
of activities.
40
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 2 DEPOSITS AND INVESTMENTS
A. Deposits
The City maintains a cash and investment pool that is available for use by all funds. Each fund
type's portion of this pool is displayed on the statement of net assets and the balance sheet as
"Cash and Investments." In accordance with Minnesota Statutes the City maintains deposits at
financial institutions which are authorized by the City Council.
Custodial Credit Risk — Custodial credit risk for deposits is the risk that in the event of a bank
failure, the City's deposits may not be returned to it. The City does not have a specific deposit
policy for custodial credit risk but rather follows Minnesota Statutes for deposits. Minnesota
Statutes require that all deposits be protected by insurance, surety bond, or collateral. The
market value of collateral pledged must equal 110% of the deposits not covered by insurance
or corporate surety bonds. Authorized collateral include: U.S. government treasury bills,
notes, or bonds; issues of a U.S. government agency; general obligations of a state or local
government rated "A" or better; revenue obligations of a state or local government rated "AA"
or better; irrevocable standby letter of credit issued by a Federal Home Loan Bank; and time
deposits insured by a federal agency. Minnesota statutes require securities pledged as
collateral be held in safekeeping m a restricted account at the Federal Reserve Bank or at an
account at a trust departments of a commercial bank or other financial institution not owned or
controlled by the depository.
The carrying value and bank balance of the City's deposits in banks at December 31, 2007 is
$4,287,074 and $4,399,269, respectively, and were entirely covered by federal depository
insurance or by surety bonds and collateral in accordance with Minnesota statutes.
B. Investments
The City may also invest idle funds as authorized by Minnesota Statutes as follows:
• Direct obligations or obligations guaranteed by the United States or its agencies.
• Shares of investment companies registered under the Federal Investment Company Act of
1940 and received the highest credit rating, is rated in one of the two highest rating
categories by a statistical rating agency, and all of the investments have a finial maturity
of thirteen months or less
• General obligations rated "A" or better; revenue obligations rated "AA" or better
• General obligations of the Minnesota Housing Finance Agency rate "A" or better
• BANKER'S acceptances of United States banks eligible for purchase by the Federal
Reserve System.
• Commercial paper issued by United States banks corporations or their Canadian
subsidiaries, of highest quality category by a least two nationally recognized rating
agencies, and maturing in 270 days or less.
• Guaranteed investment contracts guaranteed by United States commercial banks or
domestic branches of foreign banks or United States insurance companies if similar debt
obligations of the issuer or the collateral pledged by the issuer is in the top two rating
categories.
• Repurchase or reverse purchase agreement and securities lending agreements financial
institutions qualified as a "depository" by the government entity, with banks that are
members of the Federal Reserve System with capitalization exceeding $10,000,000, a
primary reporting dealer in U.S. government securities to the Federal Reserve Bank of
New York, or certain Minnesota securities broker - dealers.
41
WINN
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
At December 31, 2007, the City's investment balances were as follows:
Cash Investments Held by Trustee —
Type
Mutual Funds
Amount
$ 108,210
The above mutual funds invest in U.S. Treasury Securities. These investments are held by an
escrow agent in accordance with escrow agreements established with the sale of the Lease Revenue
Bonds Series 1998A and the Public Project Revenue Refunding Bonds Series 1999C. The
proceeds of these issues were used to finance the construction of the Civic Complex, to refund the
2000 through 2010 maturities of the City's 1990A Public Project Revenue Bonds, and to partially
refund the 1998A Civic Complex Lease Revenue Bonds.
Investments Held with Broker —
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair
value to changes in market interest rates. The City's policy to minimize interest rate risk includes
investing primarily m short-term securities and structuring the investment portfolio so that
securities mature to meet cash requirements for ongoing operations. Information about the
sensitivity of the fair values of the City's investments to market interest rate risk fluctuations is
provided by the following table that shows the distribution of the City's investments by maturity:
12 Months 13 to 24 25 to 60 More than
Type Total or Less Months Months 60 Months
Minnesota Municipal Money
Market Trust Fund $ 339,010 $ 339,010 $ $ $
Commercial Paper 14,068,798 14,068,798 - - -
Govemment Agencies 8,519,105 6,568,564 199,876 700,626 1,050,039
Mutual Fund 256,572 256,572 - - -
Total $ 23,183,485 $ 21,232,944 $ 199,876 $ 700,626 $ 1,050,039
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. The City's policy to minimize credit risk includes limiting investing
funds to those allowable under Minnesota Statute 118A, annually appointing all financial
institutions where investments are held, and diversifying the investment portfolio. This is measured
by the assignment of a rating by a nationally recognized statistical rating organization. The
following chart summarizes year -end ratings for the City's investments as rated by Moody's
Investors Service:
Credit
Type Quality Rating Amount
Minnesota Municipal Money Market Trust Fund Aa2 $ 339,010
Commercial Paper P -1 14,068,798
Government Agencies Aaa 8,519,105
Mutual Fund Not Rated 256,572
Total $ 23,183,485
42
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
The Minnesota Municipal Money Market Fund Trust is a common law trust organized in
accordance with the Minnesota Joint Powers Act, which invests only in investment instruments
allowable under Minnesota statutes as described on the previous page. Its investments are valued
at amortized cost, which approximates fair value in accordance with Rule 2a -7 of the Investment
Company Act of 1940. The amortized cost method of valuation values a security at its cost on the
date of purchase and thereafter assumes a constant amortization to maturity of any discount or
premium, regardless of the impact of fluctuating interest rates on the market value of instruments.
Credit Risk — The Minnesota Municipal Money Market Trust Fund does not have its own credit
rating. MBIA, Inc., who administers the Minnesota Municipal Money Market Fund Trust holds an
organization credit rating of Aa2.
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of failure of the counterparty,
the City will not be able to recover the value of its investment or collateral securities that are in the
possession of an outside party. The City's investment policy doesn't specifically address custodial
credit risk.
Concentration of Credit Risk
The City places no limit on the amount that it may invest in any one issuer. The following is a list
of investments which individually comprise more than 5 percent of the City's total investments:
Type Amount Percentage
Federal Home Loan Bank $ 5,653,784 24.39%
Federal Home Loan Mortgage Corporation 2,189,113 9.44%
General Electric Capital Services Commercial Paper 1,292,898 5.58%
43
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2007 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital Assets, Not Being Depreciated
Land $ 2,809,059 $ $ $ 2,809,059
Construction in Progress 5,066,936 1,448,697 (776,712) 5,738,921
Total Capital Assets, Not Being Depreciated 7,875,995 1,448,697 (776,712) 8,547,980
Capital Assets, Being Depreciated:
Buildings 6,496,870 - 6,496,870
Office Equipment and Furniture 1,059,082 70,616 (59,076) 1,070,622
Vehicles 1,727,625 437,165 (174,451) 1,990,339
Machinery and Shop Equipment 740,745 - (81,043) 659,702
Other Equipment 960,837 21,979 (2,508) 980,308
Infrastructure 69,988,514 145,450 - 70,133,964
Total Capital Assets, Being Depreciated 80,973,673 675,210 (317,078) 81,331,805
Accumulated Depreciation for:
Buildings (1,903,121) (216,937) - (2,120,058)
Office Equipment and Furniture (544,773) (91,155) 56,451 (579,477)
Vehicles (776,553) (204,046) 148,009 (832,590)
Machinery and Shop Equipment (448,817) (37,730) 73,497 (413,050)
Other Equipment (552,039) (39,065) 2,508 (588,596)
Infrastructure (33,464,938) (2,194,376) - (35,659,314)
Total Accumulated Depreciation (37,690,241) (2,783,309) 280,465 (40,193,085)
Total Capital Assets, Being Depreciated, Net 43,283,432 (2,108,099) (36,613) 41,138,720
Governmental Activities Capital Assets, Net $ 51,159,427 $ (659,402) $ (813,325) $ 49,686,700
Depreciation expense was charged to governmental functions as follows:
Governmental Activities:
General Govemment $ 269,161
Public Safety 125,712
Public Services 2,213,485
Parks, Recreation and Forestry 174,101
Conservation of natural resources 350
Community Development 500
Total Depreciation Expense, Govemmental Activities $ 2,783,309
Beginning Ending
Balance Increases Decreases Balance
Business -Type Activities:
Capital Assets, Not Being Depreciated
Construction in Progress $ $ 13,054 $ - $ 13,054
Total capital assets, not being depreciated - 13,054 - 13,054
Capital Assets, Being Depreciated:
Buildings 48,690 - - 48,690
Machinery and Shop Equipment 318,866 41,127 (28,168) 331,825
Water and Sewer Lines 38,973,291 846,892 (9,705) 39,810,478
Total Capital Assets, Being Depreciated 39,340,847 888,019 (37,873) 40,190,993
Accumulated Depreciation for:
Buildings (48,690) - - (48,690)
Machinery and Shop Equipment (209,622) (18,236) 28,168 (199,690)
Water and Sewer Lines (7,491,165) (802,387) 9,705 (8,283,847)
Total Accumulated Depreciation (7,749,477) (820,623) 37,873 (8,532,227)
Total Capital Assets, Being Depreciated, Net 31,591,370 67,396 - 31,658,766
Business -Type Capital Assets, Net $ 31,591,370 $ 80,450 $ - $ 31,671,820
44
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 4 CITY INDEBTEDNESS
City indebtedness at December 31, 2007 is composed of the following:
Governmental Activities:
General Obligation Bonds:
2005A Equipment Certificates
2006A Equipment Certificates
2007A Equipment Certificates
Civic Complex I Pase Rev. Bonds, Series 1998A
Public Project Revenue Ref. Bonds, Series 1999C
G.O. Tax Abatement Bonds, Series 2006C
G.O. Utility Revenue Bonds, Series 2006D
G.O. C1P Refunding Bonds, Series 2006E
G.O. Tax Increment Financing Bonds, Series 2007A
Total General Obligation Bonds
Special Assessment Bonds:
G.O. Improvement Bonds, Series 2002A
G.O. Improvement Bonds, Series 2002B
G.O. Improvement Refunding Bonds, Series 2003A
G.O. Improvement Bonds, Series 2003B
G.O. Improvement and Utility Bonds, Series 2004A
G.O. Improvement Bonds, Series 2005A
G.O. Improvement Refunding Bonds, Series 2005B
Total Special Assessment Bonds
Total Bonds
Unamortized Bond Discounts
Unamortized Bond Premiums
Compensated Absences Payable
Total Governmental Activities
Issue
Date
Final
Maturity
Date
2/1/2005 12/31/2008
2/1/2006 12/31/2009
2/1/07 12/31/2010
8/1/1998 2/1/2019
9/1/1999 2/1/2010
8/15/2006 2/1/2023
8/15/2006 2/1/2017
11/1/2006 2/1/2018
7/15/2007 2/1/2024
8/1/2002 2/1/2013
8/1/2002 2/1/2013
12/1/2003 2/1/2019
12/1/2003 2/1/2014
11/15/2004 2/1/2020
11/1/2005 2/1/2021
11/1/2005 2/1/2015
Business -Type Activities:
Revenue Bonds:
G.O. Water Revenue Refunding Bonds, Series 1999B 9/1/1999
G.O. Water Revenue Refunding Bonds, Series 2006F 11/1/2006
Total Revenue Bonds
Unamortized Bond Discounts
Compensated Absences Payable
Total Business -Type Activities
45
Interest
Rate
4.00%
4.00%
4.00%
4.20 % - 5.35%
4.75%-5.10%
4.00 % -4.30%
4.00%-4.15%
4.00%
4.00 % - 4.125%
3.00 %4.10%
3.20 % -5.55%
3.00%-4.10%
3.20%-5.55%
1.90% -4.45%
4.35 % -5.15%
3.75%-5.00%
2/1/2008 4.25 % -4.90%
2/1/2012 3.55 %3.625%
Original
Issue
Payable
12/31 /2007
$ 107,000 $ 37,000
307,000 217,000
160,000 160,000
5,350,000 635,000
980,000 285,000
2,460,000 2,460,000
570,000 570,000
2,990,000 2,990,000
4,215,000 4,215,000
17,139,000 11,569 000
645,000 245,000
2,110,000 1,390,000
2,090,000 770,000
250,000 200,000
1,330,000 1,190,000
5,550,000 5,355,000
3,755,000 3,370,000
15,730,000 12,520,000
32,869,000 24,089,000
(45,490) (42,294)
180,247 138,410
N/A 635,904
$ 33,003,757 $ 24,821,020
$ 680,000 $ 115,000
1,740,000 1,740,000
2,420,000 1,855,000
(4,002) (3,113)
N/A 32,982
$ 2,415,998 $ 1,884,869
- CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
OMB
1M.
Note 4 CITY INDEBTEDNESS (CONTINUED)
The following is a schedule of changes in City indebtedness for the year ended December 31, 2007:
Governmental activities:
Bonded debt:
General Obligation
Special Assessment
Unamortized Bond Discounts
Unamortized Bond Premiums
Compensated Absences Payable
Total Governmental Activities
IIIIM
WENN
Business -Type Activities:
Revenue Bonds
Unamortized Bond Discounts
Compensated Absences Payable
Total Business -Type Activities
Payable Payable Due Within
12/31/2006 Issues Payments 12/31/2007 One Year
$ 7,747,000 $ 4,375,000 $ 553,000 $ 11,569,000 $ 594,000
13,940,000 1,420,000 12,520,000 1,155,000
(18,523) (25,798) (2,027) (42,294) -
157,530 19,120 138,410 -
584,764 517,592 466,452 635,904 394,424
22,410,771 4,866,794 2,456,545 24,821,020 2,143,424
3,870,000 2,015,000 1,855,000
(3,875) - (762) (3,113)
31,041 32,043 30,102 32,982
3,897,166 32,043 2,044,340 1,884,869
325,000
24,960
349,960
Total $ 26,307,937 $ 4,898,837 $ 4,500,885 $ 26,705,889 $ 2,493,384
All long -term bonded indebtedness outstanding at December 31, 2007 is backed by the full faith and credit
of the City, including special assessment bond issues. For the governmental activities, compensated
absences are generally liquidated by the general fund.
Minimum annual principal and interest payments required to retire long -term debt, not including
compensated absences payable are as follows.
Governmental Activities Business -Type Activities
Principal Interest Principal Interest
Total
Years ending December 31,
2008 $ 1,749,000 $ 1,035,758 $ 325,000 $ 61,546 $ 3,171,304
2009 1,845,000 944,138 360,000 48,611 3,197,749
2010 1,690,000 864,274 375,000 35,471 2,964,745
2011 1,775,000 788,444 390,000 21,701 2,975,145
2012 1,930,000 709,580 405,000 7,341 3,051,921
2013 -2017 9,065,000 2,280,323 - - 11,345,323
2018 -2022 5,170,000 680,171 5,850,171
2023 -2024 865,000 29,671 894,671
Total $ 24,089,000 $ 7,332,359 $ 1,855,000 $ 174,670 $ 33,451,029
Description and Restrictions of Long -Term Debt
General Obligation Bonds - The bonds were issued for improvements or projects which benefited the City
as a whole and are, therefore, repaid from ad valorem levies.
Special Assessment Bonds - These bonds were issued to finance various improvements and will be repaid
primarily from special assessments levied on the properties benefiting from the improvements. However,
some issues are partly financed by ad valorem levies.
46
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 4 CITY INDEBTEDNESS (CONTINUED)
Public Project Revenue Bonds and Civic Complex Lease Revenue Bonds — These bonds were issued by the
Economic Development Authority (EDA) of Lino Lakes for the purpose of financing the construction of
public facilities. Pursuant to Minnesota Statutes and a lease purchase contract between the EDA and the
City of Lino Lakes, a Trust Indenture between the EDA and a regional bank has been established for the
purpose of financing payment of these bonds. The City has pledged rental payments in amounts equal to the
debt service requirements and plans to annually appropriate City funds available for this purpose. As
required by bond covenant, a reserve account has been established with a trustee, which is to be used to pay
principal and interest on the bonds in the event that other available resources are inadequate to do so.
Liability for Compensated Absences — This liability represents vested benefits earned by governmental fund
employees through the end of the year which will be paid or used in future periods. For the governmental
activities, compensated absences are generally liquidated by the general fund. The liability for Proprietary
Fund employees is included in the accrued liabilities of those funds.
Note 5 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable
principally from property taxes. The City of Lino Lakes' legal debt margin for 2007 is computed as follows:
12/31/07
Market value $ 1,927,807,500
Applicable percentage 2.0%
Debt Limit 38,556,150
Amount of debt applicable to debt limit:
Total bonded debt
Less: Special assessment bonds
Public project revenue bonds
Tax abatement bonds
Utility revenue bonds
Tax increment financing bonds
Revenue bonds
Total debt applicable to debt limit
Legal debt margin
47
25,944,000
(12,520,000)
(285,000)
(2,460,000)
(570,000)
(4,215,000)
(1,855,000)
4,039,000
S 34,517,150
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 6 DEFINED BENEFIT PENSION PLANS - STATEWIDE
A. PLAN DESCRIPTION
All full -time and certain part-time employees of the City of Lino Lakes are covered by defined benefit
pension plans administered by the Public Employees Retirement Association of Minnesota (PERA).
PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police
and Fire Fund (PEPFF) which are a cost - sharing, multiple - employer retirement plan. This plan is
established and administered in accordance with Minnesota Statutes, Chapter 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members
are covered by Social Security and Basic Plan members are not. All new members must participate in
the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership
by statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by State Statute, and vest after three years of
credited service. The defined retirement benefits are based on a member's highest average salary for
any five successive years of allowable service, age, and years of credit at termination of service.
Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The
retiring member receives the higher of step -rate benefit accrual formula (Method 1) or a level accrual
formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent
of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The
annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first
10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7
percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for
each year of service. For PEPFF members, the annuity accrual rate is 3.0 percent for each year of
service.
For PERF and PEPFF members hired prior to July 1, 1989 whose annuity is calculated using Method 1,
a full annuity is available when age plus years of service equal 90. Normal retirement age is 65 for
Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for
unreduced Social Security benefits capped at 66 for coordinated members hired on or after July 1,
1989. A reduced retirement annuity is also available to eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A single -life annuity is a
lifetime annuity that ceases upon the death of the retiree, no survivor annuity is payable. There are also
various types of joint and survivor annuity options available which will be payable over joint lives.
Members may also leave their contributions in the fund upon termination of public service in order to
qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to
members who leave public service, but before retirement benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply
to active plan participants. Vested, terminated employees who are entitled to benefits but are not
receiving them yet, are bound by the provisions in effect at the time they last terminated their public
service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for PERF and PEPFF. That report may be obtained on the interne at
www.mnpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103 -2088 or
by calling (651) 296 -7460 or 1- 800 - 652 -9026.
48
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 6 DEFINED BENEFIT PENSION PLANS — STATEWIDE (CONTINUED)
B. FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes
are established and amended by the state legislature. The City makes annual contributions to the
pension plans equal to the amount required by state statutes. PERF Basic Plan members and
Coordinated Plan members are required to contribute 9.10% and 5.75% respectively, of their annual
covered salary. Contribution rates in the Coordinated Plan will increase in 2008 to 6.0 %. PEPFF
members were required to contribute 7.8% of their annual covered salary in 2007. That rate will
increase to 8.6% in 2008. The City is required to contribute the following percentages of annual
covered payroll: 11.78% for Basic Plan PERF members, 6.25% for Coordinated Plan PERF members,
and 11.7% for PEPFF members. Employer contribution rates for the Coordinated Plan and PEPFF will
increase to 6.5% and 12.9 %, respectively, effectively January 1, 2008. The City's contributions to the
Public Employees Retirement Fund for the years ending December 31, 2007, 2006, and 2005 were
$172,504, $156,599 and $136,230 respectively. The City's contributions to the Public Employees
Police & Fire Fund for the years ending December 31, 2007, 2006, and 2005 were $219,592,
$187,212, and $158,282 respectively. The City's contributions were equal to the contractually required
contributions for each year as set by state statute.
Note 7 METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES
During 1971, the Metropolitan Waste Control Commission (MWCC) was organized to provide for
consolidation of the sanitary sewer collection, treatment and disposal in the seven county metropolitan area
surrounding Minneapolis and St. Paul. Previously, these operations were maintained by the city
governments on an individual or collective basis. The MWCC merged with the Metropolitan Council during
1994 to form Metropolitan Council Wastewater Services (MCWS) and is now called the Metropolitan
Council Environmental Services (MCES). The MCES bills the City annually based upon estimated volume
and budgeted costs. The City follows the accounting policy of recognizing these charges as an expense of
the sewer utility operation in the year for which they are billed.
Note 8 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY
A. Deficit Fund Balances
The City has deficit fund balances at December 31, 2007 as follows:
Dedicated Parks
Tax Increment Financing 1 -11
CSAH 14/8 Reconstruction Project
Fund Balance
Deficit
$ (728,704)
(18,116)
(117,134)
The City intends to fund these deficits through future tax levies, special assessment levies, tax
increments, transfers from other funds, and various other sources.
B. Expenditures in Excess of Budget
The following fund had expenditures in excess of budget for 2007:
Budget Actual Excess
Program Recreation Special Revenue Fund $ 145,105 $ 170,888 $ (25,783)
49
— CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Vme
Note 9 CONTINGENCIES
Litigation - The City attorney has indicated that existing and pending lawsuits, claims and other actions in
which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment
of the City attorney, remotely recoverable by plaintiffs.
Federal and State Funds - The City receives financial assistance from federal and state governmental
agencies in the form of grants. The disbursement of funds received under these programs generally requires
compliance with the terms and conditions specified in the grant agreements and is subject to audit by the
grantor agencies. Any disallowed claims resulting from such audits could become a liability of the
applicable fund. However, in the opinion of management, any such disallowed claims will not have a
material effect on any of the financial statements of the individual fund types included herein or on the
overall fmancial position of the City at December 31, 2007.
Note 10 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
General Obligation bond issues sold by the City are fmanced by ad valorem tax levies and special
assessment bond issues sold by the City are partially financed by ad valorem tax levies in addition to special
assessments levied against the benefiting properties. When a bond issue to be financed partially or
completely by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in the
bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate
years. The future tax levies are subject to cancellation when and if the City has provided alternative sources
—
of financing. The City Council is required to levy any additional taxes found necessary for full payment of
principal and interest.
These future scheduled tax levies are not shown as assets in the accompanying financial statements at
December 31, 2007.
Future scheduled tax levies for all bonds outstanding at December 31, 2007 totaled $27,694,879.
Note 11 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY
At December 31, 2007, the City had designated and reserved portions of its various fund equities through
legal restriction and City Council authorization. Major fund equity appropriations at December 31, 2007 are
shown on the various balance sheets as segregations of the fund equity. A summary of such designations
and reservations at December 31, 2007 is as follows:
Governmental Activity:
General Fund
Reserved for Prepaid Items $ 181,759
Designated for Cash Flow Reserve 5,356,272
Improvement Bonds of 2005A
Reserved for Debt Retirement 510,276
Area and Unit Charge
Reserved for Advance to Other Funds 885,825
Designated for Capital Improvements 1,585,791
Legacy Woods Edge Improvement Fund
Designated for Capital Improvements 3,245,015
WNW
Other Nonmajor Governmental Funds
Reserved for Prepaid Items 1,921
Reserved for Debt Retirement 3,415,126
Reserved for Environmental Improvements 100,000
Reserved for Long -Term Notes Receivable 225,000
Designated for Recreation Purposes 100,955
Designated for Capital Improvements 3,362,451
50
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 12 SHARE IN GAS FRANCHISE PROFITS
The City receives a share of the gross billing for natural gas sales by a neighboring City, which provides
service within the City of Lino Lakes. The amount reported as revenue in the General Fund during fiscal
year 2007 was $118,802.
Note 13 INTERFUND RECEIVABLE AND PAYABLES
The purpose of the interfund receivable and payable balances is for the elimination of negative cash
between funds and at December 31, 2007 are as follows:
Governmental Activity:
General Fund
Other Nonmajor Governmental Funds
Receivable Payable
$ 75,947 $ -
75,947
$ 75,947 $ 75,947
Interfund receivable and payable balances not expected to be repaid within one year are reported as
advances to and from other fund and at December 31, 2007 are as follows:
Governmental Activity:
Area and Unit Charge
Other Nonmajor Governmental Funds
Receivable Payable
$ 885,825
$ 885,825
885,825
$ 885,825
The purpose of the advance from the Area and Unit Charge Fund is to temporarily finance projects in the
Dedicated Parks Fund.
Note 14 INTERFUND TRANSFERS
Individual fund transfers for fiscal year 2007 are as follows:
Governmental Activity:
General Fund
Area and Unit Charge
Legacy Woods Edge Improvement Fund
Other Nonmajor Governmental Funds
Total Governmental Activity
Business -Type Activity:
Water Fund
Sewer Fund
Total Business -Type Activity
Total
Transfer In
$ 34,200
979,392
1,886,657
2,900,249
141,199
141,199
Transfer Out
$ (826,127)
(1,122,648)
(152,406)
(918,043)
(3,019,224)
(11,112)
(11,112)
(22,224)
$ 3,041,448 $ (3,041,448)
Interfund transfers are other financing sources and uses within the fund financial statements. The purpose of
the transfers are to provide funding for capital improvement projects, capital outlay, and debt service as
well as open and close funds.
51
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 15 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;
errors and omissions; injuries to employees; and natural disasters.
Workers compensation coverage is provided through a pooled self-insurance program through the League
of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is
subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through
Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation,
the City is not subject to a deductible. The City's workers compensation coverage is retrospectively rated.
With this type of coverage, final premiums are determined after loss experience is known. The amount of
premium adjustment, if any, is considered immaterial and not recorded until received or paid.
WWI
Property and casualty insurance is provided through a pooled self - insurance program through the LMCIT.
The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed
necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of
various amounts. The City retains risk for the deductible portion of the insurance policies and for any
exclusions from the insurance policies. These amounts are considered immaterial to the financial
statements.
The City continues to carry commercial insurance for all other risks of loss, including disability and
employee health insurance.
There were no significant reductions in insurance from the previous year or settlements in excess of
insurance coverage for any of the past three fiscal years.
Note 16 CONDUIT DEBT OBLIGATIONS
The City has issued Industrial Development Revenue Bonds and Commercial Revenue Notes to provide
_
financial assistance to private- sector entities for the acquisition and construction of industrial and
commercial facilities which are deemed to be in the public interest. The bonds are secured by the property
financed and are payable solely from payments on the underlying mortgage loans. Upon repayment of the
- bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issue.
The City is not obligated in any manner for the repayment of the bonds. Accordingly, the bonds are not
reported as liabilities in the accompanying financial statements. As of December 31, 2007, two series of
Industrial Revenue Bonds were outstanding with aggregate remaining principal balances of $1,245,000 and
$2,000,000, respectively, and two series Commercial Revenue Notes were outstanding with an aggregate
remaining principal balance of $3,410,070 and $500,000, respectively.
— Note 17 LEASE COMMITMENT
The City of Lino Lakes entered into an agreement dated December 8, 1997 to lease space within the City
Hall complex to the Independent School District No. 12 (ISD 12). The lease term continues through
June 30, 2009 and requires payments of $110 per square foot over the lease term for a total of $1,200,000.
The schedule of remaining payments is as follows:
Amount
2008 $ 112,500
2009 75,000
— Total $ 187,500
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 17 LEASE COMMITMENT (CONTINUED)
The prorated carrying value of the building being leased is as follows:
Building $ 929,970
Less Accumulated Depreciation (247,992)
Net $ 681,978
Note 18 JOINT FIRE VENTURE
The Centennial Fire District (the District) was established under a joint powers agreement between the City
of Lino Lakes and two other cities. The general purpose of the District is to provide fire protection services
including, but not limited to, fire prevention, firefighting and rescue service. Each member city is entitled to
appoint two commissioners to the District's Board.
Each calendar year participating cities are to pay the District its share of the total operating and capital
budget in accordance with a funding formula contained in Section VII of the joint powers agreement. The
funding formula takes into account each city's average number of calls, population, and total market value.
During 2007, the City of Lino Lakes' contributions to the District were as follows:
Operating $ 467,877
Capital 69,100
Total $ 536,977
Separate financial statements of the District can be obtained by contacting the Centennial Fire District.
The audited condensed fmancial statements of the District as of December 31, 2007 are as follows:
Total Assets $ 1,057,485
Total Liabilities 127,212
Total Net Assets 930,273
Total Operating Revenue 679,546
Total Operating Expenses 648,011
53
REQUIRED SUPPLEMENTARY INFORMATION
IMMO
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2007
Statement 11
Page 1 of 7
Revenue:
General property taxes:
- Current and delinquent $ 7,293,995 $ 7,293,995 $ 6,448,455 $ (845,540)
Fiscal disparities - - 800,922 800,922
Total general property taxes 7,293,995 7,293,995 7,249,377 (44,618)
Licenses and permits:
2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative
Business 40,950 40,950 47,947 6,997
Non - business 788,600 788,600 646,488 (142,112)
Total licenses and permits 829,550 829,550 694,435 (135,115)
Intergovernmental:
State:
Market Value Credit 330,000 330,000 253,429 (76,571)
Police state aid 155,000 155,000 184,583 29,583
MSA maintenance 160,000 160,000 167,185 7,185
Other 15,000 15,000 16,434 1,434
County/Regional:
- Solid waste 35,000 35,000 32,059 (2,941)
Other 5,000 5,000 3,984 (1,016)
Total intergovernmental 700,000 700,000 657,674 (42,326)
Special Assessments:
Penalties and Interest 5,000 5,000 3,103 (1,897)
Charges for services:
General government 26,500 26,500 21,810 (4,690)
- Planning/engineering 15,000 15,000 11,789 (3,211)
Fees retained from collection for
other governments - SAC /surcharge 4,000 4,000 3,360 (640)
Administrative charge - other funds 55,000 55,000 50,000 (5,000)
Aerial map charge - other funds 14,000 14,000 4,050 (9,950)
Public safety 136,000 143,000 249,579 106,579
Total charges for services 250,500 257,500 340,588 83,088
Fines and forfeits 110,000 110,000 139,932 29,932
Investment earnings 150,000 150,000 206,117 56,117
Refunds and reimbursements 30,000 30,000 16,274 (13,726)
.. Miscellaneous:
Gas franchise fees 120,000 120,000 118,802 (1,198)
Cable TV 26,000 26,000 31,828 5,828
Donations 5,000 42,050 2,350 (39,700)
Other 55,000 72,383 5 (72,378)
Total miscellaneous 206,000 260,433 152,985 (107,448)
Total Revenue
Immo
Mow
UMW
9,575,045 9,636,478 9,460,485 (175,993)
54
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2007
2007
Statement 11
Page 2 of 7
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative
Expenditures:
General government:
Mayor and council:
Current
Personal services $ 40,701 $ 40,701 $ 32,811 $ 7,890
Supplies 400 400 156 244
Other services and charges 49,400 49,400 57,491 (8,091)
Contractual Services 21,500 38,883 34,124 4,759
Total mayor and council 112,001 129,384 124,582 4,802
Elections:
Current
Personal services 11,761 11,761 6,641 5,120
Supplies 150 150 320 (170)
Other services and charges 660 660 1,877 (1,217)
Contractual Services 1,000 1,000 1,000
Capital outlay 15,000 15,000 15,000
Total elections 28,571 28,571 8,838 19,733
Administration:
Current
Personal services 451,161 451,161 455,064 (3,903)
Supplies - - 11 (11)
Other services and charges 22,900 22,900 20,014 2,886
Contractual Services 6,800 6,800 2,061 4,739
Total administration 480,861 480,861 477,150 3,711
Finance:
Current
Personal services 293,444 293,444 294,889 (1,445)
Supplies 1,500 1,500 1,187 313
Other services and charges 73,400 73,400 63,015 10,385
Contractual Services 80,900 80,900 82,095 (1,195)
Capital outlay 20,000 20,000 - 20,000
Total finance 469,244 469,244 441,186 28,058
Cable TV:
Current
Personal services 2,580 2,580 1,945 635
Supplies 50 50 - 50
Capital outlay 950 950 452 498
Total cable TV 3,580 3,580 2,397 1,183
Consultants:
Current
Legal 181,500 181,500 162,327 19,173
55
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2007
2007
Statement 11
Page 3 of 7
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative.
General government: (continued)
Engineering/planning:
Current
Contractual services $ 245,000 $ 245,000 $ 244,089 $ 911
Capital outlay 2,800 2,800 2,159 641
Total engineering/planning 247,800 247,800 246,248 1,552
Senior Service
Current
Personal services 30,813 30,813 30,270 543
Other services and charges 2,700 2,700 1,536 1,164
Capital outlay - - -
Total charter commission 33,513 33,513 31,806 1,707
Charter commission:
-
Current
Other services and charges 2,200 7,450 8,810 (1,360)
Total charter commission 2,200 7,450 8,810 (1,360)
O MM
General government buildings:
Current
Personal services 93,713 93,713 85,163 8,550
- Supplies 42,500 42,500 30,622 11,878
Other services and charges 314,880 314,880 289,922 24,958
Contractual services 29,000 29,000 22,911 6,089
MOM Total general government buildings 480,093 480,093 428,618 51,475
Total general government
Immo
Immo
Immo
2,039,363 2,061,996 1,931,962 130,034
56
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2007
Public safety:
Police:
Current
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total police
Fire protection:
Current
Contractual services
Building inspection:
Current
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total building inspection
Total public safety
Public works:
Streets:
Current
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total streets
Fleet:
Current
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total fleet
Statement 11
Page 4 of 7
2007
Original
Budget
$ 2,626,712
45,630
79,640
28,150
31,900
2,812,032
Final
Budget
$ 2,626,712
89,680
79,640
28,150
31,900
2,856,082
Variance with
Final Budget
Actual Positive (Negative
$ 2,489,373
67,282
117,624
36,482
33,825
2,744,586
467,878 467,878 467,877
314,520 314,520 302,716
2,330 2,330 1,458
27,275 31,275 30,298
2,600 2,600 350
1,000 1,000
347,725 351,725 334,822
3,627,635 3,675,685 3,547,285
535,457
132,500
78,370
133,500
3,850
883,677
535,457
132,500
78,370
133,500
3,850
883,677
523,129
144,602
78,288
165,482
3,963
915,464
94,112 94,112 94,181
182,000 182,000 225,831
44,880 44,880 54,234
2,700 2,700 1,987
3,850 3,850 3,963
327,542 327,542 380,196
$ 137,339
22,398
(37,984)
(8,332)
(1,925)
111,496
1
11,804
872
977
2,250
1,000
16,903
128,400
12,328
(12,102)
82
(31,982)
(113)
(31,787)
(69)
(43,831)
(9,354)
713
(113)
(52,654)
Total public works 1,211,219 1,211,219 1,295,660 (84,441)
57
CITY OF LINO LAKES, MINNESOTA Statement 11
GENERAL FUND Page 5 of 7
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2007
2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative
Parks and recreation:
Parks:
Current
Personal services $ 470,501 $ 470,501 $ 467,881 $ 2,620
Supplies 42,000 42,000 43,130 (1,130)
Other services and charges 36,610 36,610 50,365 (13,755)
Contractual services 25,950 25,950 34,554 (8,604)
Capital outlay 3,850 3,850 3,963 (113)
Total parks 578,911 578,911 599,893 (20,982)
Recreation:
Current
Personal services 262,199 262,199 251,334 10,865
Supplies 2,500 2,500 3,394 (894)
-
Other services and charges 15,400 15,400 14,714 686
Contractual services 800 800 1,572 (772)
Capital outlay 24,000 24,000 24,000 -
Total recreation 304,899 304,899 295,014 9,885
WENN
Total parks and recreation
Conservation of natural resources:
Forestry:
Current
883,810 883,810 894,907 (11,097)
Personal services 47,528 47,528 46,512 1,016
Supplies 1,400 1,400 855 545
Other services and charges 760 760 602 158
Contractual services 9,250 9,250 7,058 2,192
Capital outlay 5,000 5,000 5,799 (799)
Total forestry 63,938 63,938 60,826 3,112
Environmental:
Current
Personal services 80,469 80,469 77,797 2,672
- Supplies 1,500 1,500 1,227 273
Other services and charges 13,855 13,855 11,086 2,769
Contractual services 1,500 1,500 1,257 243
Total environmental 97,324 97,324 91,367 5,957
WNW
58
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2007
2007
Statement 11
Page 6 of 7
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative
Conservation of natural resources: (continued)
Solid waste abatement:
Current
Personal services $ 27,628 $ 27,628 $ 28,499 $ (871)
Supplies - 4 (4)
Other services and charges 1,200 1,200 324 876
Contractual services 8,000 8,000 8,125 (125)
Total solid waste abatement 36,828 36,828 36,952 (124)
Total conservation of natural resources
198,090 198,090 189,145
8,945
Community Development:
Community Development:
Current
Personal services 224,892 224,892 220,211 4,681
Supplies 200 200 56 144
Other services and charges 9,140 9,140 8,335 805
Contractual Services 1,400 1,400 1,075 325
Capital outlay 600 600 162 438
236,232 236,232 229,839 6,393
Economic Development:
Current
Personal services 86,294 86,294 83,401 2,893
Supplies 200 200 19 181
Other services and charges 15,600 15,600 16,212 (612)
Contractual services 129,268 129,268 94,514 34,754
Total economic development 231,362 231,362 194,146 37,216
Planning and zoning commission:
Current
Personal services 160,989 160,989 155,439 5,550
Supplies 250 250 61 189
Other services and charges 30,745 26,745 22,211 4,534
Contractual services 197,750 197,750 158,703 39,047
Capital outlay 1,800 1,800 1,403 397
Total planning and zoning commission 391,534 387,534 337,817 49,717
Total community development 859,128 855,128 761,802 93,326
Other
Contingency 60,000 54,750 54,750
Total Expenditures 8,879,245 8,940,678 8,620,761 319,917
Revenue over Expenditures 695,800 695,800 839,724 143,924
59
CITY OF LINO LAKES, MINNESOTA Statement 11
GENERAL FUND Page 7 of 7
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2007
2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative
— Other financing sources (uses):
Transfer in $ 34,200 $ 34,200 $ 34,200 $ -
Transfer out (730,000) (730,000) (826,127) (96,127)
Total other financing sources (uses) (695,800) (695,800) (791,927) (96,127)
Net increase (decrease) in fund balance $ $ - 47,797 $ 47,797
Fund Balance - January 1 5,490,234
Fund balance - December 31 $ 5,538,031
WNW
60
UMW
IMar
CITY OF LINO LAKES, MINNESOTA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2007
Note 1 BUDGETS
The General Fund budget is legally adopted on a basis consistent with U.S. Generally Accepted Accounting Principles. The
legal level of budgetary control is at the department level. The following is a listing of expenditures that exceeded budget
appropriations.
Final
Budget
Actual
Actual in
Excess of
Budget
General Fund
General government
Charter commission $ 7,450 $ 8,810 $ (1,360)
Public works
Streets: 883,677 915,464 (31,787)
Fleet 327,542 380,196 (52,654)
Parks and recreation:
Parks: 578,911 599,893 (20,982)
Conservation of natural resources:
Solid waste abatement: 36,828 36,952 (124)
61
Nonmajor Governmental Funds
Special Revenue Funds
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted
to expenditures for particular purposes. The City maintained the following nonmajor Special Revenue Funds
during the year.
Economic Development Authority - established to account for the receipt and uses of funds for
economic purposes.
Program Recreation - established to account for various self - supporting recreational programs.
Debt Service Funds
The Debt Service Funds account for the accumulation of resources for, and the payment of, interest, principal and
related costs on general long -term debt.
The City's Debt Service Funds account for three types of bonded indebtedness:
General Debt Bonds - are repaid primarily from property taxes.
Improvement Bonds - are repaid primarily from special assessments.
Public Facility Lease Revenue Bonds - are repaid primarily from lease revenues received from the EDA
leasing the buildings to the City of Lino Lakes and other tenants.
Capital Project Funds
Capital Project Funds account for the acquisition or construction of major capital facilities other than those
financed by Proprietary Funds and Trust Funds. The City maintained the following nonmajor Capital Project
Funds during the year:
Capital Improvement Projects - to account for the proceeds from Equipment Certificates.
Capital Equipment Revolving Fund - to account for funds held to purchase capital equipment.
Closed Bond Fund - to account for excess funds from matured bond issues.
Street Reconstruction — to account for the financing of future reconstruction of City streets.
Sealcoating - to account for money received from assessments and developer deposits for future street
sealcoating projects.
Surface Water Management - to account for the financing of surface water management and storm water
improvements.
SAC Revolving - to account for refunds from the Metropolitan Council Environmental Service for
properties that paid Sewer Area Charges (SAC) that will be collected in the future.
Interim Construction - to account for the construction of public improvements.
Town Center Project and Infrastructure Funds - to account for costs associated with the construction of
the City Town Center project.
Tax Increment Funds - to account for development projects financed with tax increments.
—
Office Equipment Revolving Fund — to account for the receipt and use of funds for office equipment purchases.
CSAH 14/8 Reconstruction Fund — established to account for the costs associated with the reconstruction of County
and State Highways 14 and 8.
Capital Project Funds (Continued)
Birch Hodgson Street Improvement Fund — to account for costs to improve the intersection at Birch Street and
Hodgson Road.
Dedicated Parks — to account for the receipts and use of monies collected from dedicated parks fees.
Municipal State Aid — to account for the collection of assessments on municipal state aid projects.
Permanent Funds
Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, and not
principal, may be used for purposes that support the City's programs. The City maintained the following
nonmajor Permanent Fund during the year.
Foxborough Environment Fund - established to account for the use of funds received for environmental
maintenance and improvements in the Foxborough area.
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2007
Special Revenue Debt Service
Lease
Economic Special Certificates Revenue
Development Program Revenue of Bonds
Authority Recreation Subtotal Indebtedness of 1998A
Assets
Cash and investments $ $ 104,374 $ 104,374 $ 107,421 $ 321,637
Cash and investments
with escrow agent 96,668
Accrued interest receivable 272
Accounts receivable 56,250
Due from other governmental units -
Taxes receivable:
Delinquent 6,667 5,800
Due from county 1,915 1,294
Delinquent tax increment -
Special assessments receivable:
Delinquent
Deferred
Due from county -
Long-term notes receivable 225,000 - 225,000
Prepaid items - 1,921 1,921
Total assets $ 225,000 $ 106,295 $ 331,295 $ 116,003 $ 481,921
Liabilities and Fund Balance
Liabilities:
Interfund payable $ $
Accounts payable
Salaries payable
Contracts and retainage payable
Due to other governments
Advances from other funds
Deferred revenue
Total liabilities
2,949
470
2,949
470
3,419 3,419
6,667 5,800
6,667 5,800
Fund balance (deficit):
Reserved for prepaid items 1,921 1,921 -
Reserved for debt retirement - 109,336 476,121
Reserved for environmental improvement -
Reserved for long-term notes receivable 225,000 225,000
Unreserved:
Designated:
Recreation programs 100,955 100,955
Capital improvements -
Undesignated
Total fund balance (deficit) 225,000 102,876 327,876 109,336 476,121
Total liabilities and fund balance $ 225,000 $ 106,295 $ 331,295 $ 116,003 $ 481,921
62
Statement 12
Page 1 of 4
Debt Service (Continued)
Public Project Improvement Improvement and Improvement
Refunding Improvement Improvement Refunding Improvement Utility Revenue Refunding
Bonds Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of
of1999C 2002A 2002B 2003A 2003B 2004A 2005B
$ 340,961 $ 354,399 $ 1,061,963 $ 21,049 $ 92,784
11,542
32
2,947
854
507
155
$ 301,285 $ 434,013
2,854
702
- - 4,385 - 247 2,965
94,060 467,729 199,086 44,004 314,624 346,512
- - - 356 364
$ 356,336 $ 448,459 $ 1,529,692 $ 224,520 $ 137,450 $ 616,512 $ 787,410
$
2,947 94,060 467,729 203,471 44,511 314,871 352,331
2,947 94,060 467,729 203,471 44,511 314,871 352,331
353,389 354,399 1,061,963 21,049 92,939 301,641 435,079
353,389
354,399 1,061,963 21,049 92,939 301,641 435,079
$ 356,336 $ 448,459 $ 1,529,692 $ 224,520 $ 137,450 $ 616,512 $ 787,410
63
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2007
Debt Service (continued)
Tax Utility CIP
Abatement Revenue Refunding TIF Debt
Bonds Bonds Bonds Bonds Service
2006C 2006D 2006E 2007A Subtotal
Assets
Cash and investments $ 54,627 $ 70,808 $ 59,877 $ 22,438 $ 3,243,262
Cash and investments
with escrow agent 108,210
Accrued interest receivable 304
Accounts receivable - 56,250
Due from other governmental units - -
Taxes receivable:
Delinquent 1,222 1,771 21,768
Due from county 596 864 6,380
Delinquent tax increment -
Special assessments receivable:
Delinquent 7,597
Deferred 160,640 1,626,655
Due from county 720
Long -term notes receivable
Prepaid items
Total assets $ 56,445 $ 231,448 $ 62,512 $ 22,438 $ 5,071,146
Liabilities and Fund Balance
Liabilities:
Interfund payable $ $ $ $ $
Accounts payable
Salaries payable
Contracts and retainage payable
Due to other governments
Advances from other funds - -
Deferred revenue 1,222 160,640 1,771 1,656,020
Total liabilities 1,222 160,640 1,771 1,656,020
Fund balance (deficit):
Reserved for prepaid items - - -
Reserved for debt retirement 55,223 70,808 60,741 22,438 3,415,126
Reserved for environmental improvement - - -
Reserved for long -term notes receivable
Unreserved:
Designated:
Recreation programs
Capital improvements
Undesignated -
Total fund balance (deficit) 55,223 70,808 60,741 22,438 3,415,126
Total liabilities and fund balance $ 56,445 $ 231,448 $ 62,512 $ 22,438 $ 5,071,146
64
UMW
WNW
Statement 12
Page 2 of 4
Capital Projects
Capital Capital Closed Surface
Improvement Equipment Bond Street Water SAC
Projects Revolving Fund Fund Reconstruction Sealcoating Management Revolving
$ 1,334,588 $ 64,767 $ 1,074,554 $ 585,560 $ 291,966 $ 140,376 $ 55,277
1,500
492 134 10,598
15,787 944 379,264
266 1,260
$ 1,334,588 $ 64,767 $ 1,091,099 $ 585,560 $ 293,044 $ 532,998 $ 55,277
$ $ - $ $ $ - $
8,296 7,699 758
14,265
16,279 1,078 389,862
24,575 23,042 390,620
1,334,588 64,767 - 585,560 270,002 142,378 55,277
- - 1,066,524 - - - -
1,334,588 64,767 1,066,524 585,560 270,002 142,378 55,277
$ 1,334,588 $ 64,767 $ 1,091,099 $ 585,560 $ 293,044 $ 532,998 $ 55,277
65
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2007
Capital Projects (continued)
Tax Tax
Town Town Increment Increment
Interim Center Center Financing Financing
Construction Project Infrastructure 1 -4 1 -5
Assets
Cash and investments $ $ $ $ 37,396 $ 42,074
Cash and investments
with escrow agent
Accrued interest receivable
Accounts receivable
Due from other governmental units
Taxes receivable:
Delinquent
Due from county
Delinquent tax increment
Special assessments receivable:
Delinquent
Deferred
Due from county
Long -term notes receivable
Prepaid items
Total assets $ $ $ $ 37,396 $ 42,074
Liabilities and Fund Balance
Liabilities:
Interfund payable
Accounts payable
Salaries payable
Contracts and retainage payable
Due to other governments
Advances from other funds
Deferred revenue
Total liabilities
$ $ $ $
360
1,822
2,182
Fund balance (deficit):
Reserved for prepaid items
Reserved for debt retirement
Reserved for environmental improvement
Reserved for long -term notes receivable
Unreserved:
Designated:
Recreation programs -
Capital improvements 37,396 39,892
Undesignated -
Total fund balance (deficit) 37,396 39,892
Total liabilities and fund balance $ $ $ $ 37,396 $ 42,074
66
limy
Statement 12
Page 3 of 4
Capital Projects (Continued)
Tax Tax Tax Office
Increment Increment Increment Birch Street Equipment
Financing Financing Financing Hodgson Road Dedicated Municipal Revolving
1 -9 1 -10 1 -11 Improvement Parks State Aid Fund
$ 157,413 $ 100,898 $
19,963 10,369
$ 14,300 $ 160,519 $ 401,017 $ 160,313
$ 177,376 $ 100,898 $ 10,369 $ 14,300 $ 160,519 $ 401,017 $ 160,313
$
965
19,963
20,928
$ - $ 17,672 $ $ - $
385 444 154
3,244
- 885,825
10,369 -
385 28,485 889,223
$
156,448 100,513 14,300 401,017 160,313
- (18,116) - (728,704) - -
156,448 100,513 (18,116) 14,300 (728,704) 401,017 160,313
$ 177,376 $ 100,898 $ 10,369 $ 14,300 $ 160,519 $ 401,017 $ 160,313
67
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
•.- December 31, 2007
Statement 12
Page 4 of 4
Assets
Cash and investments
Cash and investments
with escrow agent
Accrued interest receivable
Accounts receivable
Due from other governmental units
Taxes receivable:
Delinquent
Due from county
Delinquent tax increment
Special assessments receivable:
Delinquent
Deferred
Due from county
Long -term notes receivable
Prepaid items
Total assets
Liabilities and Fund Balance
Liabilities:
Interfund payable
Accounts payable
Salaries payable
Contracts and retainage payable
Due to other governments
Advances from other funds
Deferred revenue
Total liabilities
Fund balance (deficit):
Reserved for prepaid items
Reserved for debt retirement
Reserved for environmental improvement
Reserved for long -term notes receivable
Unreserved:
Designated:
Recreation programs
Capital improvements
Undesignated
Total fund balance (deficit)
Total liabilities and fund balance
Permanent
Capital Projects (continued) Fund
CSAH 14/8 Capital Foxborough
Reconstruction Projects Environment Total
Project Subtotal Fund 2007
$ - $ 4,621,018 $ 117,023 $ 8,085,677
1,500
30,332
11,224
395,995
1,526
108,210
304
56,250
1,500
21,768
6,380
30,332
18,821
2,022,650
2,246
225,000
1,921
$ - $ 5,061,595 $ 117,023 $ 10,581,059
$ 58,275 $
1,458
75,947 $
20,519
57,401 74,910
1,822
885,825
437,551
117,134 1,496,574
3,362,451
(117,134) 202,570
(117,134) 3,565,021
$ 75,947
23,468
470
74,910
1,822
885,825
2,093,571
3,156,013
1,921
3,415,126
100,000 100,000
225,000
100,955
3,362,451
17,023 219,593
117,023 7,425,046
$ - $ 5,061,595 $ 117,023 $ 10,581,059
68
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2007
Special Revenue Debt Service
Lease
Economic Special Certificates Revenue
Development Program Revenue of Bonds
Authority Recreation Subtotal Indebtedness of 1998A
Revenue:
General property taxes $ $ $ - $ 258,324 $ 170,749
Tax increments -
Intergovernmental -
Special assessments - 119 98
Charges for services 183,200 183,200 -
Investment earnings 6,366 6,366 7,605 13,281
Refunds and reimbursements -
Miscellaneous 225,000 225,000 112,500
Total revenue 225,000 189,566 414,566 266,048 296,628
Expenditures:
Current:
General government: 627 627
Public works: - -
Parks, recreation and forestry 170,888 170,888
Community Development - -
Capital outlay:
General government
Public safety
Public works
Parks, recreation and forestry
Debt service:
Principal 223,000 230,000
Interest and fiscal charges 33,279 40,180
Total expenditures 627 170,888 171,515 256,279 270,180
Revenue over (under) expenditures 224,373 18,678 243,051 9,769 26,448
Other financing sources (uses):
Transfer in 627 627 20,501
Transfer out
Sale of property
Issuance of debt
Total other financing
sources (uses) 627 627 20,501
Net increase (decrease) in fund balance 225,000 18,678 243,678 9,769 46,949
Fund balance (deficit)
Beginning of year 84,198 84,198 99,567 429,172
Fund balance (deficit) - December 31 $ 225,000 $ 102,876 $ 327,876 $ 109,336 $ 476,121
69
Ow
tom
Statement 13
Page 1 of 4
Debt Service (Continued)
Public Project Improvement Improvement and Improvement
Refunding Improvement Improvement Refunding Improvement Utility Revenue Refunding
- Bonds Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of
of1999C 2002A 2002B 2003A 2003B 2004A 2005B
$ 115,154 $
25
$ $ $ 20,953 $ $ 93,515
25,809 114,075 55,947 5,881 104,872 60,279
14,351 18,173 52,586 4,023 13,403 75
129,530 43,982 166,661 55,947 30,857 118,275 153,869
... 100,000 110,000 190,000 440,000 25,000 75,000 385,000
18,911 13,614 77,199 34,632 10,583 45,130 150,071
118,911 123,614 267,199 474,632 35,583 120,130 535,071
... 10,619 (79,632) (100,538) (418,685) (4,726) (1,855) (381,202)
Illms
410,000 480,899
410,000 480,899
10,619 (79,632) (100,538) (8,685) (4,726) (1,855) 99,697
342,770 434,031 1,162,501 29,734 97,665 303,496 335,382
$ 353,389 $ 354,399 $ 1,061,963 $ 21,049 $ 92,939 $ 301,641 $ 435,079
Imp
70
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2007
Capital Projects (Continued)
Town Town Tax Increment Tax Increment
Interim Center Center Financing Financing
Construction Project Infrastructure 1 -4 1 -5
Revenue:
General property taxes $ $ - $ $ $ -
Tax increments 39,163
Intergovernmental 103
Special assessments -
Charges for services - - -
Investment earnings 16,430 16,511 1,296 1,939 2,003
Refunds and reimbursements - - -
Miscellaneous
Total revenue 16,430 16,511 1,296 1,939 41,269
Expenditures:
Current:
General government:
Public works:
Parks, recreation and forestry -
Community Development 13 33,686
Capital outlay:
General government
Public safety
Public works
Parks, recreation and forestry -
Debt service:
Principal
Interest and fiscal charges
Total expenditures 13 33,686
Revenue over (under) expenditures 16,430 16,511 1,296 1,926 7,583
Other financing sources (uses):
Transfer in
Transfer out (310,683) (312,211) (24,498)
Sale of property
Issuance of debt
Total other financing
sources (uses) (310,683) (312,211) (24,498)
Net increase (decrease) in fund balance (294,253) (295,700) (23,202) 1,926 7,583
Fund balance (deficit)
Beginning of year 294,253 295,700 23,202 35,470 32,309
Fund balance (deficit) - December 31 $ $ $ $ 37,396 $ 39,892
73
Statement 13
Page 3 of 4
Capital Projects (Continued)
Office
Tax Increment Tax Increment Tax Increment Birch Street Equipment
-- Financing Financing Financing Hodgson Road Dedicated Municipal Revolving
1 -9 1 -10 1 -11 Improvement Parks State Aid Fund
V
201,568 172,536
7,120
4,172
5,948
386,182
741 14,577 6,742
221,075
7,467
208,688 176,708 5,948 741 235,652 392,924 7,467
208,860
65,189
172,935 139,979 478 -
77,264
19,535
28,713
172,935 139,979 478 171,166 208,860 19,535
35,753 36,729 5,470 741 64,486 184,064 (12,068)
75,000 83,333 60,000
(132,950)
(57,950) 83,333 60,000
35,753 36,729 5,470 741 6,536 267,397 47,932
120,695 63,784 (23,586) 13,559 (735,240) 133,620 112,381
$ 156,448 $ 100,513 $ (18,116) $ 14,300 $ (728,704) $ 401,017 $ 160,313
74
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2007
Statement 13
Page 4 of 4
Permanent
Capital Projects (Continued) Fund
CSAH 14/8 Capital Foxborough
Reconstruction Projects Environment Total
Project Subtotal Fund 2007
Revenue:
General property taxes $ $ - $ $ 861,254
-" Tax increments - 419,215 419,215
Intergovernmental 105,709 491,994 491,994
Special assessments - 181,058 565,551
Charges for services - 183,200
Investment eamings 278,366 5,945 422,575
Refunds and reimbursements 2,842 - 2,842
Miscellaneous 374,550 5,700 717,750
.1' Total revenue 105,709 1,748,025 11,645 3,664,381
Expenditures:
Current:
General government: 23,982 24,609
Public works: 267,186 1,020,278 1,020,278
Parks, recreation and forestry - 65,189 236,077
Community Development 347,091 347,091
Capital outlay:
General government 19,535 19,535
Public safety 169,951 169,951
Public works 317,005 317,005
Parks, recreation and forestry 77,264 77,264
Debt service:
Principal - - 1 ,778,000
Interest and fiscal charges 28,713 664,715
Total expenditures 267,186 2,069,008 4,654,525
Revenue over (under) expenditures (161,477) (320,983) 11,645 (990,144)
Other financing sources (uses):
Transfer in 69,073 952,406 1,886,657
Transfer out (897,542) (918,043)
Sale of property 54,037 54,037
Issuance of debt 160,000 178,459
Total other financing
sources (uses) 69,073 268,901 1,201,110
Net increase (decrease) in fund balance (92,404) (52,082) 11,645 210,966
Fund balance (deficit)
Beginning of year (24,730) 3,617,103 105,378 7,214,080
Fund balance (deficit) - December 31 $ (117,134) $ 3,565,021 $ 117,023 $ 7,425,046
75
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUND - PROGRAM RECREATION
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2007
Statement 14
Revenue:
Charges for services:
Recreation Fees
Investment earnings
Total revenue
2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative)
$ 160,800 $ 160,800 $ 183,200 $ 22,400
6,366 6,366
160,800 160,800 189,566 28,766
Expenditures:
Current:
Personal services 84,840 84,840 90,070 (5,230)
Supplies 41,135 41,135 76,754 (35,619)
Other services and charges 1,480 1,480 360 1,120
Contractual services 15,650 15,650 3,704 11,946
Capital outlay 2,000 2,000 - 2,000
Total expenditures 145,105 145,105 170,888 (25,783)
Net increase (decrease) in fund balance $ 15,695 $ 15,695 18,678 $ 2,983
Fund balance - January 1 84,198
Fund balance - December 31 $ 102,876
76
Fiduciary Funds
Agency Fund
Agency Funds are used to account for assets held by the City as an agent for individuals, private
organizations, or other governments. The City maintained the following Agency fund during the year:
Contractor's Deposits — to account for pass- through costs relating to prospective developers.
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - FIDUCIARY FUNDS
Year Ended December 31, 2007
Statement 15
Assets
Cash and investments
Deposits receivable
Total assets
Liabilities
Accounts payable
Deposits payable
Total Liabilities
Balance Balance
January 1, December 31,
2007 Additions Deductions 2007
$ 1,103,463 $ 954,222 $ 1,008,902 $ 1,048,783
10,520 10,520
$ 1,113,983 $ 954,222 $ 1,008,902 $ 1,059,303
$ 17,213 $ 636,994 $ 622,906 $ 31,301
1,096,770 1,108,562 1,177,330 1,028,002
$ 1,113,983 $ 1,745,556 $ 1,800,236 $ 1,059,303
77
SUPPLEMENTARY FINANCIAL INFORMATION
CITY OF LINO LAKES, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2007
Interest
Rates
Dated
Final
Maturity
Date
General Obligation Bonds:
2004A Equipment Certificates 4.00% 2/1/04 12/31/07
2005A Equipment Certificates 4.00% 2/1/05 12/31/08
2006A Equipment Certificates 4.00% 2/1/06 12/31/09
2007A Equipment Certificates 4.00% 2/1/07 12/31/2010
Civic Complex Lease Revenue Bonds, Series 1998A 4.20 % - 5.35% 8/1/98 2/1/19
Public Project Revenue Refunding Bonds, Series 1999C 4.75 % -5.10% 9/1/99 2/1/10
G.O. Tax Abatement Bonds, Series 2006C 4.00 % - 4.30% 8/15/06 2/1/23
G.O. Utility Revenue Bonds, Series 2006D 4.00 % - 4.15% 8/15/06 2/1/17
G.O. CIP Refunding Bonds, Series 2006E 4.00% 11/1/06 2/1/18
G.O. Tax Increment Bonds, Series 2007A 4.00 % - 4.125% 7/15/2007 2/1/2024
Total General Obligation Bonds
Special Assessment Bonds:
G. O. Improvement Bonds of 2002A
G. O. Improvement Bond of 2002B
G. O. Improvement Refunding Bonds of 2003A
G. O. Improvement Bonds of 2003B
G. O. Improvement and Utility Bonds of 2004A
G. O. Improvement Bonds of 2005A
G. O. Improvement Refunding Bonds of 2005B
Total General Improvement Bonds with special assessments pledged
Revenue Bonds:
G. O. Water Revenue Bonds of 1996B
G. O. Water Revenue Refunding Bonds of 1999B
G. O. Water Utility Revenue Refunding Bonds of 2006F
Total Revenue Bonds
Total City indebtedness
78
3.00 %-4.10% 8/1/02 2/1/13
3.20 % - 5.55% 8/1/02 2/1/13
2.00 % - 4.25% 12/1/03 2/1/19
3.20 % - 5.60% 12/1/03 2/1/14
1.90 % - 4.45% 11/15/04 2/1/20
4.35 % - 5.15% 11/1/05 2/1/21
3.75 % - 5.00% 11/1/05 2/1/15
4.10 % - 5.70% 10/1/96 2/1/12
4.25 % - 4.90% 9/1/99 2/1/08
3.55 % - 3.625% 11/1/06 2/1/12
IMMI
Exhibit 1
Prior Years Principal Interest
Original Payable 2007 Payable Due Due
Issue Payments 1/1/07 Issued Payments 12/31/07 In 2008 In 2008
$ 274,000 $ 176,000 $ 98,000 $ $ 98,000 $ - $ - $ -
107,000 35,000 72,000 35,000 37,000 37,000 1,480
307,000 - 307,000 90,000 217,000 107,000 9,765
- - 160,000 160,000 50,000 13,800
,r 5,350,000 4,485,000 865,000 - 230,000 635,000 250,000 25,188
980,000 595,000 385,000 100,000 285,000 100,000 11,790
2,460,000 - 2,460,000 - 2,460,000 - 103,420
570,000 570,000 - 570,000 50,000 22,122
2,990,000 2,990,000 - 2,990,000 - 119,600
- 4,215,000 4,215,000 177,061
13,038,000 5,291,000 7,747,000 4,375,000 553,000 11,569,000 594,000 484,226
645,000 290,000 355,000
2,110,000 530,000 1,580,000
2,090,000 880,000 1,210,000
250,000 25,000 225,000
1,330,000 65,000 1,265,000
5,550,000 5,550,000
3,755,000 3,755,000
15,730,000 1,790,000 13,940,000
3,320,000 1,410,000 1,910,000
680,000 460,000 220,000
1,740,000 1,740,000
5,740,000 1,870,000 3,870,000
110,000 245,000 110,000 7,253
190,000 1,390,000 200,000 67,688
440,000 770,000 55,000 27,813
25,000 200,000 25,000 9,590
75,000 1,190,000 75,000 42,437
195,000 5,355,000 275,000 262,285
385,000 3,370,000 415,000 134,469
1,420,000 12,520,000 1,155,000 551,535
1,910,000
105,000
2,015,000
115,000
1,740,000
1,855,000
115,000
210,000
325,000
2,818
58,729
61,547
$ 34,508,000 $ 8,951,000 $ 25,557,000 $ 4,375,000 $ 3,988,000 $ 25,944,000 $ 2,074,000 $ 1,097,308
79
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2007
Year of
Levy/
Collection
2007/2008
2008/2009
2009/2010
2010/2011
2011/2012
2012/2013
2013/2014
2014/2015
2015/2016
2016/2017
2017/2018
2018/2019
2019/2020
2020/2021
2021/2022
2022/2023
2023/2024
Equipment
Certificates
of 2005A
Equipment
Certificates
of 2006A
$ 40,404 $ 122,603
- 120,698
Equipment
Certificates
of 2007A
Lease
Revenue
Bonds
of 1998A
$ 66,990 $ 191,213
62,948 126,788
60,349
Public
Project
Refunding
Bonds
1999C
$ 109,557
104,570
G. O.
Improvement
Bonds
of 2002A
G. O.
Improvement
Bonds
of 2003B
$ 7,467 $ 21,844
6,496 20,741
5,446 19,534
9,645 23,524
8,385 21,917
20,248
23,781
$ 40,404 $ 243,301 $ 190,286 $ 318,001 $ 214,127 $ 37,439 $ 151,589
80
Exhibit 2
G.O.
Improvement
and Utility
Bonds
of 2004A
G. O.
Improvement
Bonds
of 2005A
$ 126,520 $
124,472
127,439
124,793
127,187
_. 129,268
125,772
122,133
128,853
124,548
125,388
125,898
126,123
INEw
Imer
568,297
569,084
569,084
568,297
566,722
569,609
566,197
567,247
572,497
571,184
574,072
574,907
579,639
G. O.
Improvement
Refunding
Bonds
of 2005B
G. O. G. O.
Tax CIP
Abatement Refunding
Bonds Bonds
2006C 2006E
$ 574,022 $
557,484
546,197
524,213
512,925
490,613
463,050
108,591
108,591
140,091
196,581
235,011
245,511
255,381
264,458
278,140
285,411
297,263
313,472
323,316
337,517
350,447
$ 125,580
209,580
442,470
445,410
468,720
459,060
443,940
449,820
460,110
464,100
G. O.
TIF
Bonds
2007A
$ 96,913
351,253
354,823
389,473
432,943
442,813
493,843
495,103
500,983
506,023
268,723
271,243
278,593
285,313
291,403
301,855
306,127
Total
$ 2,160,001
2,362,704
2,265,433
2,281,936
2,373,810
2,357,122
2,371,964
1,898,761
1,940,583
1,951,266
1,265,446
1,285,520
1,307,671
622,830
641,850
301,855
306,127
$ 1,638,394 $ 7,416,836 $ 3,668,504 $ 3,739,781 $ 3,968,790 $ 6,067,427 $27,694,879
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS
December 31, 2007
Bonds payable
Future interest payable
Totals
G. O.
G. 0. G. 0. Improvement
Equipment Equipment Equipment Improvement Improvement Refunding
Certificates Certificates Certificates Bonds Bonds Bonds
2005A 2006A 2007A of 2002A of 2002B 2003A
$ 37,000 $ 217,000 $ 160,000 $ 245,000 $ 1,390,000 $ 770,000
1,480 14,715
21,225 21,451
234,748 195,384
38,480 $ 231,715 $ 181,225 $ 266,451 $ 1,624,748 $ 965,384
Payments to maturity:
2008 $ 38,480 $ 116,765 $ 63,800 $ 117,253 $ 267,688 $ 82,813
2009 - 114,950 59,950 29,893 272,613 81,301
2010 - 57,475 28,930 271,388 79,611
2011 27,930 269,310 82,638
2012 - 31,830 271,395 80,537
2013 - 30,615 272,354 78,438
2014 81,088
2015 - 78,488
2016 80,788
2017 - 77,988
2018 - 79,994
2019 - - - 81,700
2020 - - -
2021 - - -
2022 -
2023 -
2024 - -
$ 38,480 $ 231,715 $ 181,225 $ 266,451 $ 1,624,748 $ 965,384
82
IIMIIII
Exhibit 3
G. O.
Improvement
Bonds
2003B
G. O.
Improvement
and Utility
Bonds
2004A
G. O.
Improvement
Bonds
2005A
G. O.
Improvement
Refunding
Bonds
2005B
G.O.
Tax
Abatement
Bonds
2006C
G.O.
Utility
Revenue
Bonds
2006D
G.O.
CIP
Refunding
Bonds
2006E
G.O.
TIF
Bonds
2007A
$ 200,000 $ 1,190,000 $ 5,355,000 $ 3,370,000 $ 2,460,000 $ 570,000 $ 2,990,000 $4,215,000
- 39,493 323,969 2,117,832 _ 609,939 1,153,412 124,063 849,600 1,563,494
lam
$ 239,493 $ 1,513,969 $ 7,472,832 $ 3,979,939 $ 3,613,412 $ 694,063 $ 3,839,600 $5,778,494
$ 34,590 $ 117,437 $ 537,286
- 33,490 115,187 534,111
32,315 112,900 534,486
35,950 120,420 534,111
- 34,390 117,700 532,986
32,778 114,810 531,111
35,980 116,702 533,361
- 118,182 529,736
114,382 530,236
115,482 534,611
116,382 532,861
-
117,013 534,633
117,372 534,784
538,519
$ 549,469
538,813
523,063
512,219
491,375
477,875
456,625
430,500
$ 103,420 $ 72,122 $ 119,600 $ 177,061
103,420 70,122 119,600 331,226
103,420 68,122 198,000 334,426
132,820 66,122 415,300 366,626
185,520 69,022 417,800 407,026
221,320 71,722 439,300 416,026
231,020 69,292 430,000 463,426
240,043 66,832 415,600 464,326
248,381 69,254 420,800 469,526
260,858 71,453 430,100 473,926
267,464 - 433,500 252,126
278,327 254,326
293,233 - 261,026
302,183 267,126
315,103 - 272,504
326,880 282,016
- 285,775
$ 239,493 $ 1,513,969 $ 7,472,832 $ 3,979,939 $ 3,613,412 $ 694,063 $ 3,839,600 $5,778,494
83
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS (CONTINUED)
— December 31, 2007
Exhibit 3 (Continued)
G.O. Water
Civic Public G. O. Water Utility
Complex Project Revenue Revenue
Revenue Revenue Refunding Refunding
Bonds Bonds Bonds Bonds
of 1998A of 1999C of 1999B of 2006F Totals
Bonds payable $ 635,000 $ 285,000 $ 115,000 $ 1,740,000 $ 25,944,000
— Future interest payable 56,125 21,049 2,817 171,856 7,522,652
Totals $ 691,125 $ 306,049 $ 117,817 $ 1,911,856 $ 33,466,652
Payments to maturity:
2008 $ 281,125 $ 111,790 $ 117,817 $ 268,729 $ 3,177,245
2009 289,250 101,964 - 408,612 3,204,502
2010 120,750 92,295 410,472 2,967,653
2011 - 411,702 2,975,148
2012 412,341 3,051,922
2013 - 2,686,349
2014 2,417,494
— 2015 - 2,343,707
2016 - - 1,933,367
2017 - - 1,964,418
2018 - - 1,682,327
2019 1,265,999
2020 1,206,415
2021 1,107,828
2022 - - - 587,607
2023 608,896
2024 285,775
$ 691,125 $ 306,049 $ 117,817 $ 1,911,856 $ 33,466,652
CITY OF LINO LAKES, MINNESOTA
INSURANCE IN FORCE
December 31, 2007
Exhibit 4
Coverage Amount
General Liability:
Bodily Injury/Property Damage $ 1,000,000
Personal Injury/Police Professional Liability 1,000,000
Employee Benefit Liability 1,000,000
Fire Legal Liability 50,000
Medical Expense Occurrence Limit 1,000
Medical Expense Aggregate 10,000
Property Damage ($500 Deductible)
Property:
Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers) 23,971,946
Faithful Performance Blanket Bond 500,000
Storage Tank Liability 100,000
Rented/Leased Equipment ($500 Deductible) 250,000
Public Official and Employee Liability ($500 Deductible each occurrence) 1,000,000
Automotive:
Bodily injury and property damage 1,000,000
Comprehensive and Collision Actual Cash Value
Uninsured motorists 1,000,000
Workmen's compensation Statutory
Umbrella Liability 1,000,000
Crime - Theft Disappearance and Destruction ($500 Deductible) 100,000
85
Ilmor
CITY OF LINO LAKES, MINNESOTA Exhibit 5
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES
-- Tax Capacity Tax Capacity
Values Values
2006/2007 2005/2006
Taxable valuations:
Total $ 20,974,940 $ 18,850,702
Fiscal disparities:
Distribution 2,204,262 1,797,349
—
Contribution (1,172,916) (1,010,480)
Less: Captured Tax Increment Value (428,590) (389,386)
— $ 21,577,696 $ 19,248,185
Tax Tax
Certified Capacity Certified Capacity
Levy Rate Levy Rate
Taxes Levied:
Revenue $ 7,558,995 36 $ 7,042,626 36
Bond and Interest 897,333 5.354 934,281 5.354
Totals
$ 8,456,328
41.398 $ 7,976,907 41.398
The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution
86
III.
STATISTICAL
SECTION
Statistical Section (Unaudited)
This part of the Comprehensive Annual Financial Report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about overall financial health. The following are the
categories of the variaous schedules that are included in this section.
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial
performance and well -being have changed over time.
ORM Revenue Capacity
These schedules contain information to help the reader assess the City's most significant revenue
sources.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within the City's financial activities take place.
Debt Capacity
These schedules present information to help the reader assess the affordability of the City's
current levels of outstanding debt and the City's ability to issue additional debt in the future.
Operating information
These schedules contain service and infrastructure data to help the reader understand how the
information the City's financial report relates to the services the City provides and the activities
it performs.
Vow
NNW
CITY OF LINO LAKES, MINNESOTA
NET ASSETS BY COMPONENT,
LAST FIVE FISCAL YEARS
(accrual basis of accounting)
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total govemmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Unrestricted
Total business -type activities net assets
Primary Government
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total primary govemment net assets
Table 1
Fiscal Year
2003
2004 2005
$ 25,993,905 $ 28,807,262
3,568,555 3,045,052
15, 668, 226 16, 249, 541
$ 45,230,686 $ 48,101,855
$ 25,537,383 $ 26,713,498
3,778,936 4,744,875
$ 29,316,319 $ 31,458,373
$ 51,531,288
3,568,555
19,447,162
$ 55,520,760
3,045,052
20,994,416
$ 74,547,005 $ 79,560,228
$ 25,460,528
12,050,484
13,577,071
$ 51,088,083
$ 28,342,832
5,572,338
$ 33,915,170
$ 53,803,360
12,050,484
19,149,409
$ 85,003,253
Note: The City began to report accrual information when it implemented GASB 34 in fiscal year 2003.
87
2006
$ 29,549,174
10,704,508
14,516,466
$ 54,770,148
$ 29,485,942
6,880,547
$ 36,366,489
$ 59,035,116
10,704,508
21,397,013
$ 91,136,637
2007
$ 36,789,153
10,324,467
6,339,528
$ 53,453,148
$ 29,836,775
8,063,983
$ 37,900,758
$ 66,625,928
10,324,467
14,403,511
$ 91,353,906
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET ASSETS,
LAST FIVE FISCAL YEARS
(accrual basis of accounting)
Expenses
Governmental activities:
General Government
Public Safety
Public Services
Parks, Recreation and Forestry
Conservation of Natural Resources
Community Development
Interest on long -term debt
Total govemmental activities expenses
Business -type activities:
Water
Sewer
Total business -type activities
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services'
General Government
Public Safety
Public Works
Parks, Recreation and Forestry
Conservation of Natural Resources
Community Development
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Water
Sewer
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
Net (Expense)/Revenue
Governmental activities
Business -type activities
Total primary government net expense
2003
$ 6,092,587
2,648,944
1,162,412
932,113
111,946
859,110
815,681
$ 12,622,793
$ 968,458
1,046,170
2,014,628
$ 14,637,421
$ 102,520
964,034
493,312
250,816
5,369
28,210
633,691
4,536,567
$ 7,014,519
2004
$ 2,524,387
2,799,294
7,254,708
1,196,096
116,869
420,874
748,832
$ 15,061,060
Fiscal Year
2005
Table 2
$ 2,941,279
3,091,174
9,187,436
799,335
150,092
383,211
797,341
$ 17,349,868
$ 914,039 $ 876,592
1,130,994 1,217,825
2,045,033 2,094,417
$ 17,106,093 $ 19,444,285
$ 122,861
1,049,858
454,191
242,857
11,763
28,952
677,079
7,515,238
$ 10,102,799
2006
$ 2,886,825
3,516,376
3,871,968
1,162,458
156,592
691,880
926,021
$ 13,212,120
2007
$ 2,197,672
3,730,504
10,580,560
1,357,133
183,420
1,122,802
980,849
$ 20,152,940
$ 976,575 $ 1,170,902
1,228,123 1,298,963
2,204,698 2,469,865
$ 15,416,818 $ 22,622,805
$ 111,480 $
998,210
434,087
196,951
4,873
26,985
761,924
10,128,024
$ 12,662,534 $
$ 1,064,326 $ 979,075 $ 1,031,175
1,216, 589 1,280,652 1,361,759
2,719,081 1,589,419 1,733,775
4,999,996 3,849,146 4,126,709
$ 12,014,515 $ 13,951,945 $ 16,789,243
88,924
844,514
420,741
188,439
6,854
20,530
643,749
5,963,204
8,176,955
$ 1,175,172
1,391,702
1,535,631
4,102,505
$ 12,279,460
$ 91,646
1,078,995
389,489
185,803
4,559
15,839
851,791
7,189,346
$ 9,807,468
$ 1,215,763
1,446,112
80,750
2,742,625
$ 12,550,093
$ (5,608,274) $ (4,958,261) $ (4,687,334) $ (5,035,165) $ (10,345,472)
2,985 368 1,804,113 2,032,292 1,897,807 272,760
$ (2,622,906) $ (3,154,148) $ (2,655,042) $ (3,137,358) $ (10,072,712)
88
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET ASSETS,
LAST FIVE FISCAL YEARS (Continued)
(accrual basis of accounting)
2003
General Revenues and Other Changes in Net Assets
Governmental activities:
Property taxes
Unrestricted grants and contributions
°.. Unrestricted investment eamings
Gain on sale of capital assets
Miscellaneous
Transfers
▪ Total governmental activities
Business -type activities:
Unrestricted investment eamings
Transfers
W— Total business -type activities
Total primary government
Change in Net Assets
Govemmental activities
Business -type activities
Total primary government change in net assets
• Note: The City began to report accrual information
Maw
■
i
$ 6,847,470
194,220
(301,355)
$ 6,740,335
$ 20,866
301,355
322,221
$ 7,062,556
$ 1,132,061
3,307,589
$ 4,439,650
2004
Fiscal Year
2005
2006
2007
$ 6,630,279 $ 7,383,415 $ 8,269,944 $ 8,785,280
256,877
221,302 433,387 713,794 864,578
1,280,957 33,217 17,424
- 160,955 - -
(303,108) (304,195) (299,725) (895,687)
$ 7,829,430 $ 7,673,562 $ 8,717,230 $ 9,028,472
$ 34,833 $
303,108
337,941
$ 8,167,371 $
120,310
304,195
424,505
8,098,067
$ 2,871,169 $ 2,986,228
2,142,054 2,456,797
$ 5,013,223 $ 5,443,025
when it implemented GASB 34 in fiscal year 2003.
89
$ 253,787 $ 365,822
299,725 895,687
553,512 1,261,509
$ 9,270,742 $ 10,289,981
$ 3,682,065 $ (1,317,000)
2,451,319 1,534,269
$ 6,133,384 $ 217,269
CITY OF LINO LAKES, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
General Fund
Reserved
Unreserved
Total general fund
All Other Governmental Funds
Reserved reported in:
Special Revenue Funds
Capital Projects Funds
Debt Service Funds
Permanent Funds
Unreserved reported in:
Special Revenue Funds
Capital Projects Funds
Debt Service Funds
Permanent Funds
Total all other governmental funds
Fiscal Year
1998
1999
$ 98,453 $ 115,359
3,312,879 3,319,115
$ 3,411,332 $ 3,434,474
$ 264 $
990,455
1,989,218
36,956
12,099,048
989,506
3,824,337
33,961
4,340,900
(6,234)
2000
2001
$ 105,052 $ 105,969
3,436,544 3,818,700
$ 3,541,596 $ 3,924,669
$ 1,017 $
1,572,422
4,101,453
49,232
4,990,610
(28, 568)
1,551
1,843,423
1,768,402
41,195
6,242,862
(41, 953)
$ 15,115,941 $ 9,182,470 $ 10,686,166 $ 9,855,480
Total all funds $ 18,527,273 $ 12,616,944 $ 14,227,762 $ 13,780,149
90
Table 3
Fiscal Year
2002 2003 2004 2005 2006 2007
$ 120,727 $ 133,921 $ 142,492
4,232,291 4,775,969 5,067,973
$ 4,353,018 $ 4,909,890 $ 5,210,465
$ 2,430
1,946,617
1,818,859
25,200
6,317,650
(612,943)
$ 1,759
1,946,618
2,482,184
32,704
5,406,014
675,409
$ 148,652
5,300,156
$ 5,448,808
$ 1,718 $
957,112
2,556,300
57,616
6,241,408
452,972
1,763
957,112
7,371,359
100,000
74,716
7,348,375
$ 153,009
5,337,225
$ 5,490,234
$ 1,813
957,112
3,992,952
100,000
82,385
5,525,508
$ 181,759
5,356,272
$ 5,538,031
$ 226,921
885,825
3,925,402
100,000
100,955
8,395,827
853 5,378 17,023
$ 9,497,813 $ 10,544,688 $ 10,267,126 $ 15,854,178 $ 10,665,148 $ 13,651,953
$ 13,850,831 $ 15,454,578 $ 15,477,591 $ 21,302,986 $ 16,155,382 $ 19,189,984
91
CITY OF LINO LAKES, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Revenues
Property Taxes
Licenses and Permits
Intergovernmental
Special Assessments
Charges for Services
Fines and Forfeits
Investment Earnings
Miscellaneous
Total revenues
Expenditures
Current:
General Government
Public Safety
Public Works
Parks, Recreation and Forestry
Conservation of Natural Resources
Community Development
Capital outlay
Debt Service
Principal
Interest and fiscal charges
Construction /Acquisition
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other Financing Sources (Uses)
Sale of Property
Proceeds from Issuance of Debt
Premium on Bonds Issued
Discount on Bonds Issued
Payment to Refunded Bond Escrow Agent
Transfer In
Transfer Out
Total other financing sources (uses)
Net change in fund balances
Fiscal Year
1998
$ 3,844,699
726,599
2,411,186
2,973,299
651,041
102,489
1,119,621
321,219
12,150,153
1999
$ 4,571,934
823,719
1,047,725
2,519,598
562,359
87,434
230,921
472,609
10,316,299
2000
$ 5,213,896
884,746
802,456
3,106,359
618,295
124,458
930,177
685,621
12,366,008
2001
$ 5,856,349
1,016,456
2,101, 953
1,783,237
684,264
101,559
571,248
699,020
12,814,086
2,512,284 2,644,205 3,145,791 2,652,762
1,778,863 1,951,820 2,126,696 2,212,932
673,156 627,925 838,789 1,134,874
663,566 755,215 828,852 914,432
561,160 218,981 106,543 139,599
623,360 1,576,616 617,345 992,339
740,000 1,190,734 1,448,570 2,097,050
527,782 1,076,079 1,041,882 960,281
12,468,230 8,775,128 725,663 501,810
20,548,401 18,816, 703 10,880,131 11,606, 079
(8,398,248) (8,500,404) 1,485,877 1,208,007
11, 806, 000
2,312,920
(2,150,161)
11,968,759
3,600,539
(961,098)
948,297
(997,663)
2,590,075
325,450
332,030
(1,680, 000)
526,843 412,239
(847,352) (719,889)
4,941 (1,655,620)
$ 3,570,511 $ (5,910,329) $ 1,490,818
Debt service as a percentage of
noncapital expenditures 17.0%
92
26.8%
(447,613)
26.1% 30.2%
INIIIM
Table 4
Fiscal Year
2002 2003 2004 2005 2006 2007
$ 6,243,200
913,498
858,816
2,050,015
611,414
100,393
,. 447,182
710,513
11,935,031
$ 6,687,516
766,524
2,011,285
2,812,386
658,370
97,223
194,049
677,823
13,905,176
$ 6,523,938
867,909
2,419, 531
1,587,510
639,565
106,053
221,303
782,179
13,147,988
$ 7,230,287
812,172
1,808,111
1,769,821
601,548
100,980
433,385
948,009
13,704,313
2,893,683 5,808,015 2,261,908 2,701,731
- 2,463,004 2,609,171 2,798,013 3,099,032
1,245,451 1,770,649 5,126,578 7,071,322
952,039 969,597 954,945 1,111,301
111,880 114,580 115,631 140,334
1,057,099 622,218 515,287 464,553
2,851,332 1,684,450 1,960,000 2,016,000
1,030,395 865,638 798,405 838,950
1,833,592 229,321 -
14,438,475 14,673,639 14, 530, 767 17,443, 223
(2,503,444) (768,463) (1,382,779) (3,738,910)
1,280,957 280,269
2,878,201 2,673,565 1,604,000 9,412,000
- 176,231
(6,057)
(1,170,000) -
1,120,223 5,283,306 2,651,469
(1,421,578) (5,586,414) (2,955,664)
2,372,210 1,405,792 9,564,305
851,472
(1,155,547)
2,574,126
70,682 $ 1,603,747 $ 23,013 $ 5,825,395
33.6%
18.4%
19.7% 16.8%
$ 8,103,263
581,582
1,818,519
2,901,100
687,551
101,518
713,795
716,692
15,624,020
$ 8,529,846
694,435
6,143,689
1,961,253
753,698
139,932
864,578
889,901
19,977,332
2,614,303 1,953,960
3,314,159 3,513,460
7,755,727 8,446,911
1,076, 727 1,103, 021
143,653 183,346
683,036 1,107,328
835,770 2,008,073
2,155,000 1,973,000
1,011,157 937,895
21,226,994
19, 589, 532
(3,965,512)
28,818
6,327,000
450
(13,635)
(7,225,000)
5,811,452
(6,111,177)
(1,182,092)
(1,249,662)
54,037
4,375,000
(25, 798)
2,900,249
(3,019,224)
4,284,264
$ (5,147,604) $ 3,034,602
25.0% 15.1%
CITY OF LINO LAKES, MINNESOTA
ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY,
LAST TEN FISCAL YEARS
Table 5
Commercial/ Total Taxable
Payable Residential Industrial Personal Assessed Total Direct
Year Property Property Property Value Tax Rate
1998 8,272,475 972,430 434,234 9,679,139 30.44
1999 8,560,188 1,089,469 393,365 10,043,022 36.04
2000 9,428,655 1,574,470 395,637 11,398,762 35.96
2001 10,763,728 1,872,003 393,728 13,029,459 35.90
2002 9,179,811 1,202,560 246,594 10,628,965 53.08
2003 10,649,345 1,487,554 251,016 12,387,915 47.60
2004 12,252,347 1,982,146 259,194 14,493,687 42.29
2005 14,055,076 2,290,829 274,956 16,620,861 42.22
2006 15,825,619 2,740,583 271,665 18,837,867 41.40
2007 17,605,080 3,047,965 288,290 20,941,335 38.99
Source: Anoka County, Minnesota Assessors' Office
Note: The tax capacity (assessed taxable value) of the property is calculated by applying a
statutory formula to the estimated market value of the property.
94
CITY OF LINO LAKES, MINNESOTA
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $100 of Tax Capacity)
Table 6
City Direct Rate Overlapping Rates
Centennial Total Direct
General School Other and
Obligation Total District ISD # Anoka Taxing Total Overlapping
Fiscal Year Basic Rate Debt Service Direct 12 County Districts Overlapping Tax Rate
1998 27.443 2.994 30.437 59.004 30.618 6.342 95.964 126.401
1999 28.503 7.536 36.039 64.802 32.265 6.830 103.897 139.936
2000 28.407 7.554 35.961 58.230 30.861 7.635 96.726 132.687
2001 28.903 6.995 35.898 69.888 28.859 6.903 105.650 141.548
2002 43.940 9.144 53.084 37.828 37.976 5.913 81.717 134.801
2003 40.268 7.335 47.603 37.467 37.714 7.050 82.231 129.834
2004 36.302 5.985 42.287 36.649 35.221 6.373 78.243 120.530
2005 36.838 5.385 42.223 37.486 33.080 6.696 77.262 119.485
2006 36.044 5.354 41.398 40.253 32.096 6.479 78.828 120.226
2007 34.356 4.638 38.994 38.090 30.696 5.578 74.364 113.358
Source: Anoka County Property Records and Tax Division
Notes:
The majority of Lino Lakes is served by Independent School District No. 12.
95
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS,
CURRENT YEAR AND NINE YEARS AGO
Taxpayer
2007 1998
Table 7
Percentage Percentage
of Total of Total
City City
Taxable Taxable Taxable Taxable
Net Tax Net Tax Net Tax Net Tax
Capacity Rank Capacity Capacity Rank Capacity
Target Corporation $ 265,254 1 1.23 % $ %
Lino Lakes Realty LLC 256,862 2 1.19 -
Xcel Energy 148,787 3 0.69 232,108 1 2.28
▪ Kohl's Department Store 131,706 4 0.61
Moline Concrete Products 124,375 5 0.58 44,010 7 0.43
Taylor Corporation 117,902 6 0.55 174,702 2 1.72
▪ Gargaro Properties LLC 91,274 7 0.42 101,806 3 1.00
Lino Lakes Business Center 89,862 8 0.42 42,050 8 0.41
F &G Incorporated 88,256 9 0.41 - -
Legacy Holdings LLC 87,018 10 0.40 - -
Minnegasco, Inc. - 68,292 4 0.67
Anoka Electric Cooperative 58,484 5 0.58
Minnesota Pipeline Company - 54,864 6 0.54
•- McKinney, Lloyd P - 36,082 9 0.36
NoI -Tec Systems - 30,334 10 0.30
Total $ 1,401,296 6.50 % $ 842,732 8.29 %
Source: Anoka County
96
CITY OF LINO LAKES, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS.
LAST TEN FISCAL YEARS
small
Collected within the Ammik
Taxes Levied for the Fiscal Year Fiscal Year of Levy
Percentage
Fiscal Operating Debt Total Tax of
Year Tax Levy Tax Levy Levy Amount Levy
1998 $ 3,274,364 $ 315,253 $ 3,589,617 $ 3,564,611 99.3%
1999 3,255,587 860,725 4,116,312 4,085,625 99.3%
2000 3,611,498 960,390 4,571,888 4,534,998 99.2%
2001 4,105,048 993,561 5,098,609 5,047,912 99.0%
2002 4,885,509 1,016,649 5,902,158 5,847,692 99.1%
2003 5,180,932 943,689 6,124,621 6,062,273 99.0%
2004 5,623,542 927,078 6,550,620 6,145,419 93.8%
2005 6,342,211 927,091 7,269,302 6,881,838 94.7%
2006 7,042,626 934,281 7,976,907 7,594,019 95.2%
2007 7,558,995 897,333 8,456,328 8,324,180 98.4%
w
Notes:
Current year levies and collections include Sate levy related credits (HACA and Market Value
Credit).
97
Collections
in Subsequent
Years
Total Collections to Date
Amount
Table 8
Percentage Outstanding Percentage
of Delinquent of Levy
Levy Taxes Outstanding
$ 27,552 $ 3,592,163 100.1% $ (2,546) -0.1%
21,163 4,106,788 99.8% 9,524 0.2%
42,227 4,577,225 100.1% (5,337) -0.1%
50,389 5,098,301 100.0% 308 0.0%
56,678 5,904,370 100.0% (2,212) 0.0%
85,631 6,147,904 100.4% (23,283) -0.4%
46,536 6,191,955 94.5% 358,665 5.5%
45,869 6,927,707 95.3% 341,595 4.7%
- 7,594,019 95.2% 382,888 4.8%
8,324,180 98.4% 132,148 1.6%
CITY OF LINO LAKES, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Fiscal
Year
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Governmental Activities
General
Obligation
Bonds
$ 6,862,734
6,904,570
6,911,450
6,686,430
6,244,450
6,030,000
5,764,000
5,335,000
7,177, 000
11,569,000
Special
Assessments
Payable
$ 13,215,000
14,045,000
13,165, 000
10,195, 000
11,640, 000
12, 840, 000
11, 580, 000
19,405,000
13, 940, 000
12, 520, 000
Other
Long -Term
Debt
Business -Type
Activities
General
Obligation
Revenue
Bonds
$ 946,020 $
1,459, 352
1,209,352
959,352
4,075,000
4,550,000
4,340,000
3,465,000
3,220,000
2,970,000
2,705,000
2,425,000
4,410,000
1,855,000
Total
Primary
Government
$ 25,098,754
26,958,922
25,625,802
21,305,782
21,104,450
21,840,000
20,049,000
27,165, 000
25,527,000
25,944,000
Notes:
Details regarding the District's outstanding debt can be found in the notes to the financial statements.
See the Demographic and Economic Statistics schedule for personal income and population data.
(1) = Personal income information is not available for 2007 from the State of Minnesota Jobs Training Research
Statistics Department.
99
Table 9
Percentage
of Personal Per
Income Capita
6.14 $ 1,667
5.96 1,711
4.96 1,526
3.94 1,225
3.69 1,176
3.64 1,189
3.13 1,071
3.95 1,379
3.63 1,293
(1) 1,296
100
Non IP
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
As of December 31, 2007
Table 10
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable Debt
Overlapping:
Anoka County $ 124,025,000 6.4% $ 7,952,912
ISD 12 132,375,000 49.2% 65,183,916
ISD 624 67,360,000 3.5% 2,333,286
ISD 831 70,490,000 7.5% 5,260,293
SISD 916 11,030,000 2.7% 295,291
Metropolitan Council 204,840,000 0.6% 1,296,832
Total Overlapping 82,322,530
City of Lino Lakes Direct Debt $ 4,324,000 100% 4,324,000
Total Direct and Overlapping Debt: $ 86,646,530
Sources: Taxable value data used to estimate applicable percentages provided by the County Property
Appraiser. Debt outstanding data provided by each governmental unit.
Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of
the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is
borne by the residents and businesses of the City. This process recognizes that, when considering the City's
ability to issue and repay long -term debt, the entire debt burden borne by the residents and businesses
should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore
responsible for repaying the debt, of each overlapping government.
Does not include general obligation debt supported by special assessments, utility revenues,
tax or aid anticipation certificates, State -aid road or revenue debt.
Determined by ratio of net tax capacity (after fiscal disparities and tax increment adjustment)
of property subject to taxation in overlapping unit to valuation of property subject to taxation in City.
101
CITY OF LINO LAKES, MINNESOTA
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
1998 1999 2000 2001
Debt limit $ 12,548,476 $ 13,754,748 $ 15,507,964 $ 18,073,714
Total net debt applicable to limit 5,853,841 5,894,844 5,976,450 5,836,430
Legal debt margin $ 6,694,635 $ 7,859,904 $ 9,531,514 $ 12,237,284
Total net debt applicable to the limit
as a percentage of debt limit 46.65% 42.86% 38.54% 32.29% r.
r
r
102
Table 11
Legal Debt Margin Calculation for Fiscal Year 2007
Market value
Debt limit (2% of market value)
Debt applicable to limit
Legal debt margin
Fiscal Year
$ 1,927,807,500
38,556,150
4,039,000
$ 34,517,150
2002
2003
2004 2005
$ 20,688,642 $ 25,024,436 $ 28,616,070 $ 30,698,674
5,479,450
5,350,000
5,169,000 4,845,000
2006
$ 34,686,356
4,332,000
2007
$ 38,556,150
4,039,000
$ 15,209,192 $ 19,674,436 $ 23,447,070 $ 25,853,674 $ 30,354,356 $ 34,517,150
26.49% 21.38%
18.06% 15.78% 12.49% 10.48%
103
CITY OF LINO LAKES, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Table 12
(2)
Personal Per
Income Capita (3) (4)
Fiscal (1) (thousands Personal School Unemployment
Year Population of dollars) Income Enrollment Rate
1998 15,053 408,824 27,159 6,487 1.9
1999 15,760 452,407 28,706 6,732 2.5
2000 16,791 516,659 30,770 6,845 2.6
2001 17,386 540,531 31,090 6,911 4.1
2002 17,942 572,099 31,886 6,985 4.3
2003 18,368 600,266 32,680 6,992 5.0
2004 18,725 640,170 34,188 6,956 4.6
2005 19,698 686,968 34,875 6,934 3.8
2006 19,736 703,983 35,670 6,986 4.1
2007 20,018 N/A N/A 6,874 4.8
Source:
(1) = Estimates from Metropolitan Council, except for 2000 which is per the U.S. Census.
(2) = Information from State Demographers Office (Bureau of Economic Analysis Report).
(3) = Information from Independent School District No. 12.
(4) = Information from the State of Minnesota Jobs Training Research Statistics Department.
104
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL EMPLOYERS,
CURRENT YEAR AND NINE YEARS AGO
Employer
State of Minnesota Corrections
AdGraphics
Target Corporation
Synovis Interventional Systems
Anoka County Juvenile Center
Molin Concrete Products
Summit Fire Protection
Nol -Tech Systems, Inc.
Custom Manufacturing
Northern Wholesale
Mag -Con, Inc.
Total
(2) (3)
2007 1998
Employees Rank
600 1
260 2
240 3
160 4
160 5
135 6
100 7
70 8
60 9
1,785
Source: City of Lino Lakes Official Statements
_ Notes:
(1) = While information was obtainable for the large
employment within the City was not available.
(2) = Employer information for 2007 is only available
(3) = Employer information for 1998 is only available
ti
(1)
Percentage
of Total
Employment
Table 13
(1)
Percentage
of Total
Employees Rank Employment
N/A % 400 1
N/A 215 2
N/A
N/A
N/A 125 3
N/A 70 4
N/A -
N/A 35 8
N/A 60 5
55 6
45 7
1,005
N/A %
N/A
N/A
N/A
N/A
N/A
N/A
N/A
-
st employers within the City of Lino Lakes, information on the total
for the nine largest employers within the City of Lino Lakes.
for the eight largest employers within the City of Lino Lakes.
105
CITY OF LINO LAKES, MINNESOTA
Full- time - Equivalent Employees by Type
Last Ten Fiscal Years
General Government
Administration
Seniors
Finance
Economic Development
Planning
Community Development
Engineering
Full- Time - Equivalent Employees as of December 31,
1998 1999 2000 2001 2002 2003
4.80 5.00 5.00 5.00 5.00 5.00
- 0.63 0.63 0.63 0.63 0.63
2.50 2.50 2.75 3.50 3.50 3.50
2.00 2.00 3.00 1.75 1.75 1.00
2.00 2.00 2.00 2.00 2.00 2.00
- - - 2.00 2.00 2.00
1.00 0.50 - - - -
Building - - 1.00 1.00 1.00 1.00
Other 0.55 0.55 0.55 0.55 0.55 0.55
Total General Government 12.85 13.18 14.93 16.43 16.43 15.68
Public Safety
Officers 19.50 19.50 21.00 21.00 22.00 22.00
Civilians 4.00 4.00 4.00 4.00 4.00 4.00
Building Inspection 2.70 2.50 3.00 3.00 4.00 4.00
Total Public Safety 26.20 26.00 28.00 28.00 30.00 30.00
Public Works
Streets 5.00 5.00 5.35 5.85 5.85 5.85
Other 1.00 1.00 1.15 1.15 1.15 1.15
Total Public Works 6.00 6.00 6.50 7.00 7.00 7.00
Parks, Recreation and Forestry 8.68 9.05 9.15 9.15 9.15 9.15
Water 2.00 1.95 1.80 2.15 2.15 2.15
Sewer 2.00 1.95 1.80 2.15 2.15 2.15
Total 57.73 58.13 62.18 64.88 66.88 66.13
Source: City Finance Office
106
Table 14
2004 2005 2006 2007
5.00 5.00 5.00 5.00
0.63 0.63 0.63 0.63
3.50 3.50 3.50 3.50
1.00 1.00 1.00 1.00
2.00 2.00 2.00 2.00
2.00 2.75 2.75 2.75
1.00 1.00 1.00 1.00
0.55 1.15 1.15 1.40
15.68 17.03 17.03 17.28
22.00 25.00 26.00 26.00
4.00 4.75 4.75 4.75
4.00 4.25 4.25 4.25
30.00 34.00 35.00 35.00
5.85 6.35 6.85 7.35
1.15 1.15 1.15 1.15
7.00 7.50 8.00 8.50
9.15 9.05 9.55 9.80
2.15 2.15 2.15 2.15
2.15 2.15 2.15 2.15
66.13 71.88 73.88 74.88
107
CITY OF LINO LAKES, MINNESOTA
OPERATING INDICATORS BY FUNCTION /PROGRAM
Last Ten Years
Function /Program
General Government
Elections
Registered voters
Number of votes cast
Voter participation (registered)
Fiscal Year
1998
1999
2000
2001
2 1 2 1
8,674 8,435 10,125 9,349
6,747 2,952 8,073 3,089
77.8% 35.0% 79.7% 33.0%
Public Safety
Police
Calls for Service 6,508 5,828 6,218 6,569
Traffic Citations & Warnings 2,088 2,258 2,548 2,333
Part I Crimes 323 254 307 343
Part II Crimes 892 791 946 1,120
Inspections
Building Permits (1) 911 893 1,186 1,042
Inspections N/A N/A N/A N/A
Value of Building Permits $48,683,257 $54,522,159 $57,080,794 $74,974,042
Public Works
General Maintenance (hours) N/A N/A N/A N/A
Street Maintenance (hours) N/A N/A N/A N/A
Fleet Maintenance (hours) N/A N/A N/A N/A
Snow Plowing /Sanding (hours) N/A N/A N/A N/A
Culture and Recreation
Parks
Park Maintenance (hours) N/A N/A N/A N/A
Utilities
Water Maintenance (hours) N/A N/A N/A N/A
Sanitary Sewer Maintenance (hours) N/A N/A N/A N/A
Source: Various City Departments
Notes:
Information not available is labeled N /A.
(1) 1,565 roofing permits issued in 2007 due to storm damage.
108
Maw
Table 15
Fiscal Year
2002 2003 2004 2005 2006 2007
2 1 2 1 2 1
9,423 9,911 11,718 11,035 11,618 10,908
8,291 4,650 10,147 5,288 8,284 2,337
88.0% 46.9% 86.6% 47.9% 71.3% 21.4%
7,318 7,668 7,538 7,766 7,418 7,208
2,611 2,564 3,258 3,631 5,958 3,796
404 370 316 257 292 N/A
1,259 1,004 644 591 649 N/A
860 826 835 837 686 2,297
N/A N/A N/A N/A N/A N/A
$53,977,610 $55,864,076 $61,579,910 $53,686,592 $42,078,007 $30,539,559
N/A 2,656 3,263 6,014 5,692 6,758
N/A 4,082 3,533 3,106 3,631 2,916
N/A 3,780 3,804 4,440 4,460 4,144
N/A 1,020 855 1,003 867 1,425
N/A N/A 10,210 10,577 10,368 10,939
N/A N/A 4,349 3,904 4,387 4,256
N/A N/A 3,347 4,092 3,347 4,148
109
CITY OF LINO LAKES, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION /PROGRAM
Last Ten Years
Function /Program
Fiscal Year
1998 1999 2000 2001
Public Safety
Police
Stations 1 1 1 1
Patrol Units 8 9 9 9
Fire (Joint Powers)
Stations in City 1 1 1 1
Fire Trucks 4 4 4 4
Public Works
Lights 350 397 397 405
Vehicles 26 27 27 27
City Streets (miles) 80.8 85.6 90.3 91.9
Culture & Recreation
Parks
Parks 16 17 17 17
Park Acres 126 133 133 133
Trails (miles) 13 14 14 14
Park Shelters 3 3 3 3
Basketball Courts 3 4 4 4
Fishing Pier 1 1 1 1
Skating Rinks 5 5 4 4
Soccer Fields 8 8 8 8
Baseball /Softball Fields 18 18 18 18
Tennis Courts 2 2 2 2
Playgrounds 13 14 15 15
Water
Distribution System (miles) 31.5 37.5 40.0 42.5
Water Connections 2,476 2,655 2,922 3,263
Gallons Pumped (millions) 294 293 373 407
Number of Fire Hydrants 286 326 357 398
Water Tower Capacity (millions gallons) 2 2 2 2
Sanitary Sewer
Collection System (miles)
Sewer Connections
42.2
2,773
47.5
2,846
49.8
3,104
51.3
3,343
Storm Sewer
Pipe (miles) 21.4 21.8 25.6 28.1
Source: Various City Departments
110
Table 16
Fiscal Year
2002 2003 2004 2005 2006 2007
1 1 1 1 1 1
9 9 10 11 12 12
1 1 1 1 1 1
4 4 4 4 5 5
486 489 489 559 673 673
28 28 29 29 29 29
93.2 93.8 94.3 95.5 96.0 96.1
18 19 19 18 18 18
138 142 142 141 141 141
14 18 18 19 20 29
4 4 5 5 7 7
5 6 6 6 6 6
1 1 1 1 1 1
4 4 4 4 4 4
8 8 8 8 8 8
18 18 18 18 20 20
2 2 2 2 2 2
— 16 17 17 17 16 16
42.5 46.2 48.2 50.8 51.1 51.5
3,433 3,548 3,738 3,957 4,090 4,112
358 518 474 475 565 595
409 452 490 523 558 558
—
2 2 2 2 2 2
51.3
3,636
59.2
3,763
61.4
3,960
63.5
4,142
63.3
4,282
64.5
4,428
29.8 31.3 31.9 33.1 34.1 34.3