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COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LINO LAKES, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2006
Prepared By: Finance Department
Alan Rolek, Director of Finance
Paula Schloer, Accountant
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
I. INTRODUCTORY SECTION
Principal City Officials 1
Organizational Chart 2
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting 8
II. FINANCIAL SECTION
Independent Auditors' Report 9
Management's Discussion and Analysis 11
Basic Financial Statements
Statement of Net Assets Statement 1 21
Statement of Activities Statement 2 22
Balance Sheet - Governmental Funds Statement 3 24
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets Statement 4 26
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Governmental Funds Statement 5 27
Reconciliation of the Governmental Funds Statement of Revenue,
Expenditures and Changes in Fund Balance to the Statement
of Activities Statement 6 29
Statement of Net Assets - Proprietary Funds Statement 7 30
Statement of Revenues, Expenses and Changes in Net Assets -
Proprietary Funds Statement 8 31
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Statement of Cash Flows - Proprietary Funds
Statement of Net Assets - Fiduciary Funds
Notes to Financial Statements
Required Supplementary Information
General Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual
Notes to Required Supplementary Information
Combining Fund Financial Statements
Combining Balance Sheet — Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance — Nonmajor Governmental Funds
Special Revenue Fund — Program Recreation:
Schedule of Revenue, Expenditures and Changes in Fund
Balance — Budget and Actual
Statement of Changes in Assets and Liabilities — Fiduciary Funds
Supplementary Financial Information
Combined Schedule of Indebtedness
Schedule of Deferred Tax Levies
Debt Service Payments to Maturity - All Bonds
Insurance in Force
Taxable Valuations, Tax Levies and Tax Rates
III. STATISTICAL SECTION
Net Assets by Component — Last Four Fiscal Years
Changes in Net Assets - Last Four Fiscal Years
Page
Reference Number
Statement 9 32
Statement10 33
34
Statement l 1 55
62
Statement 12 63
Statement 13 71
Statement 14 79
Statement 15 80
Exhibit 1 81
Exhibit 2 83
Exhibit 3 85
Exhibit 4 88
Exhibit 5 89
Table 1 90
Table 2 91
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
Fund Balances, Governmental Funds - Last Ten Fiscal Years Table 3 93
Changes in Fund Balances, Governmental Funds — Last Tem Fiscal Years Table 4 95
Assessed and Actual Value of Taxable Property -
Last Ten Fiscal Years Table 5 97
Direct and Overlapping Property Tax Rates -
Last Ten Fiscal Years Table 6 98
Principal Property Taxpayers Table 7 99
Property Tax Levies and Collections — Last Ten Fiscal Years Table 8 100
Ratios of Outstanding Debt by Type Table 9 102
Direct and Overlapping Governmental Activities Debt Table 10 104
Legal Debt Margin Information Table 11 105
Demographic and Economic Statistics Table 12 107
Principal Employers, Current Year and Nine Years Ago Table 13 108
Full -Time Equivalent Employees by Type Table 14 109
Operating Indicators by Function/Program Table 15 111
Capital Asset Statistics by Function/Program Table 16 113
INTRODUCTORY
SECTION
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CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2006
Elected Officials
Mayor:
John Bergeson
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
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City of Lino Lakes Organizational Chart
Commissions
Citizens
Honorable Mayor
and
City Council
Cable
Parks and Recreation
Economic Development
Planning and Zoning
Fire
Environmental
City Administrator
City Clerk
Public Services Public Safety
Parks Police
Public Works Emergency Management
Recreation
Professional Consultants
Engineering
Attorney
Fiscal
Administration Community Development 1 Finance
r '
Human Resources
Planning
Administrative Services Economic Development
2
Accounting
Management lnfomration Systems
Engineering Utility Billing
Environmental Services
Inspections
MON
June 1, 2007
I- ionorable Mayor
Members of the City Council
Citizens of the City of Lino Lakes, Minnesota
Minnesota State law requires that cities over 2,500 population publish within six months of the close of each
fiscal year a complete set of financial statements presented in conformity with U.S. 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, 2006.
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, 2006, 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, 2006, are fairly presented in conformity with GAAP. The independent
auditor's report is presented as the first component of the financial section of this report.
GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic
financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is
designed to complement MD &A and should be read in conjunction with it. The City of Lino Lakes' MD &A can
be found immediately following the report of the independent auditors.
6O0 Ton Center Parkvrav , Ligno Lakes, Minnesota 55014 -1182
Phone: 031-002-2400 • Fax: 051 -082 -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 20,290. The population has
more than doubled from the 1990 census figure of 8,807 and has grown by 21% since 2000. Within the City's
borders lies the 2,550 acre Rice Creek Chain of Lakes Regional Park. Access to St. Paul and Minneapolis is
provided by I -35W and I -35E.
The City Charter, as amended, establishes a mayor - council form of government and grants the city council full
policy- making and legislative authority to the mayor and four council members. The city council is responsible,
among other things, for passing ordinances, adopting the budget, appointing committees, and hiring a city
administrator. The city administrator has the responsibility of carrying out the policies and ordinances of the city
council, for overseeing the day -to -day operation of the city. The city council is elected at -large on a non - partisan
basis, with council members serving four -year terms and the mayor serving a two -year term. Elections are held
every two years with two council seats and the mayor being up for election each election cycle.
The City provides a full range of municipal services. These services include: general government, public safety
(police & fire), public works (streets & fleet), parks and recreation, conservation of natural resources
(environmental & solid waste abatement), public improvements, providing and maintaining sanitary and storm
sewer, water infrastructure, and two enterprise funds, the water and sewer funds.
The annual budget is the foundation for the City of Lino Lakes' financial planning and control. All divisions are
required to submit appropriations requests to the city administrator for review and consolidation into a proposed
budget. The city administrator is responsible for submitting the proposed annual budget to the City Council in
August of each year. The city council is required to hold a public hearing on the proposed budget and to adopt by
resolution a final budget and certify it no later than December 28. The budget amounts cannot increase beyond
the estimated receipts except to the extent that actual receipts exceed the estimate. Division directors may make
transfers of appropriations within a department, but transfers of appropriations between departments require
council approval. Budget -to- actual comparisons for the general fund and the recreation program fund, the only
funds for which an annual budget has been adopted, are provided in this report beginning on pages 55 and 79,
respectively.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which the City of Lino Lakes operates.
Local economy. The 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 currently under construction. 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, and the
developer is currently obtaining leases for this space. A Wells Fargo branch bank was also constructed in this
area during 2005 and opened in early 2006.
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Building permits for new homes in 2006 numbered 91, 105 fewer than were issued 2005, reflecting the softening
residential real estate market. 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.
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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 began construction in early 2006
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 began in late Fall, 2006 and the facility is scheduled
to open 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 are planned to begin in May, 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 $10.4 million and will be
financed through the joint efforts of MNDOT, Anoka County and the City of Lino Lakes. The City will issue
G.O. Tax Increment bonds and use 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 December, 2006, identifies street and utility improvements totaling
$35,475,545 over the period of 2007 through 2011. 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, tax increment financing and voter - approved tax levies. Improvements to
_ several of the city's neighborhood parks and the city's trail system are also planned over this period in the
amount of $95,000. These improvements will be funded through park dedication fees and the dedicated parks
fund. The five -year plan also includes funding projections for operations and operating impacts for the period of
2007 -2011.
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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 42.
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 2006 was 5.14 %.
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 49.
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, 2005. 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 2006 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.
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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,
i
—
Alan J. Rolek
Director of Finance
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lino Lakes
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2005
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
Executive Director
FINANCIAL
SECTION
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Lars•nAl!en
CPAs, Consultants & Advisors
www.larsonallen.com
INDEPENDENT AUDITORS' REPORT
Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City of Lino Lakes, Minnesota
as of and for the year ended December 31, 2006, which collectively comprise the City's basic financial
statements as listed in the table of contents. These basic financial statements are the responsibility of the City's
management. Our responsibility is to express an opinion on these basic 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 opinion.
In our opinion, the basic 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, 2006, 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 30, 2007 on our
consideration of the City of Lino Lakes Minnesota's internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts, grants, 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 supplemental 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.
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INTERNATIONAL
9
LarsonAllen LLP is a member of Nexia International, a worldwide network of independent accounting and consulting firms.
Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. 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.
Austin, Minnesota
May 30, 2007
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LarsonAllen LLP
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City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
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, 2006. 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 $91,136,637 (net assets). Of this amount $21,397,013 (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 $6,133,384.
• As of the close of the current fiscal year, the City of Lino Lakes' governmental funds reported
combined ending fund balance of $16,155,382, a decrease of $5,147,604 in comparison with the
prior year. Approximately 68% of this total amount, or $10,950,496 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
$5,337,225, or 68% of total general fund expenditures.
• The City of Lino Lakes' total bonded debt decreased by $1,608,000 (6 percent) during the current
fiscal period. The key factors for the decrease were the refunding of the 1998A and 1998B
Improvement bonds that were be called and retired in February, 2006, and the partial refunding of
the 1998A Lease Revenue Bonds that were called and retired on December 1, 2006.
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, 2006
Both of the government -wide financial statements distinguish functions of the City of Lino Lakes that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business -type activities). The governmental activities of the City of Lino Lakes include general
government, public safety, public services, parks, recreation and forestry, conservation of natural
resources and community development. The business -type activities of the City of Lino Lakes include a
water utility and sewer utility.
The government -wide financial statements can be found on pages 21 -23 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City of Lino Lakes, like
other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance - related legal requirements. All of the funds of the City of Lino Lakes can be divided into two
categories: governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However, unlike the
government -wide financial statements, governmental fund financial statements focus on near -term inflows
and outflows of spendable resources, as well as on balances of spendable resources available at the end
of the fiscal year. Such information may be useful in evaluating a government's near -term financing
requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long -term impact of the government's near -term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental functions and governmental activities.
The City of Lino Lakes maintains forty -three 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, Legacy Woods Edge Improvement fund and Chain of Lakes YMCA fund, all
of which are considered to be major funds. Data from the other thirty -eight governmental funds are
combined into a single, aggregate presentation. Individual fund data for each of these nonmajor
governmental funds is provided in the form of combining statements elsewhere in this report.
The City of Lino Lakes adopts an annual appropriated budget for its general and program recreation
special revenue funds. A budgetary comparison statement has been provided for these funds to
demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 24 through 29 of this report.
Proprietary funds. The City of Lino Lakes maintains two proprietary type funds. Enterprise funds are
used to report the same functions presented as business -type activities in the government -wide financial
statements. The City of Lino Lakes uses enterprise funds to account for its sewer and water utilities.
The proprietary fund statements provide the same type of information as the government -wide financial
statements, only in more detail. The proprietary fund financial statements provide separate information for
the sewer fund and the water fund, which are considered to be major funds of the City of Lino Lakes. The
basic proprietary fund financial statements can be found on pages 30 through 32 of this report.
12
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements. The notes to
*- the financial statements can be found on pages 34 -54 of this report.
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Other information. The combining statements and schedules referred to earlier in conjunction with
nonmajor governmental funds can be found on pages 63 -78 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 $91,136,637 at the close of the most recent fiscal
year, an increase of $6,133,384 from the previous year.
By far the largest portion of the City of Lino Lakes' net assets (65 percent) reflects its investment in capital
assets (e.g. land, buildings, machinery, equipment, and infrastructure), less any related debt used to
acquire those assets that is still outstanding. The City of Lino Lakes uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although the City of
Lino Lakes' investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
A condensed version of the Statement of Net Assets at December 31, 2006 follows:
Current and Other Assets
Capital Assets
Total Assets
Noncurrent Liabilities Outstanding
Other Liabilities
Total Liabilities
Net Assets
Invested in Capital Assets, Net
of Related Debt
Restricted
Unrestricted
Total Net Assets
Governmental Activities
2006 2005
$ 27,167,139 $ 32,881,762
51,159,427 45,450,783
78,326,566 78,332,545
22,410,771
1,145,647
23,556,418
25,425,155
1,819, 307
27,244,462
Business -Type Activities
2006 2005
$ 8,772,775 $ 5,718,353
31,591,370 30,767,824
40,364,145 36,486,177
3,897,167
100,489
3,997,656
2,452,500
118,507
2,571,007
Total
2006 2005
$ 35,939,914 $ 38,600,115
82,750,797 76,218,607
118,690,711 114,818, 722
26,307,938
1,246,136
27,554,074
27,877,655
1,937,814
29,815,469
29,549,174
10,704,508
14,516,466
$ 54,770,148
25,460,528
12,050,484
13,577,071
$ 51,088,083
29,485,942 28,342,832 59,035,116 53,803,360
10, 704, 508 12, 050, 484
6,880,547 5,572,338 21,397,013 19,149,409
$ 36,366,489 $ 33,915,170 $ 91,136,637 $ 85,003,253
Of the remaining balance of the City of Lino Lakes' net assets, restricted net assets (12 percent) are to be
used for debt service requirements and a nonexpendable environmental fund. Unrestricted net assets (23
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, 2006
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 increased the City of Lino Lakes' net assets by
$3,682,065, thereby accounting for 60 percent of the total growth in the net assets of the City of Lino
Lakes. The most significant change in governmental net assets is due to the effect of accounting for net
assets under the full accrual basis. Under full accrual accounting, current year outlay for infrastructure will
be expensed over the useful life of the infrastructure. This capital outlay for the infrastructure is budgeted
for during the current year.
Business -type activities. Business -type activities increased the City of Lino Lakes' net assets by
$2,451,319, thereby accounting for 40 percent of the total growth in the net assets of the City of Lino
Lakes. 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
year ended December 31, 2006:
REVENUES
Program Revenues
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
General Revenues
Property Taxes
Franchise Taxes
Other Taxes
Unrestricted Investment Earnings
Gain on Disposal of Capital Assets
Contributions to Permanent Fund
Other
Total Revenues
EXPENSES
General Government
Public Safety
Public Service
Parks, Recreation and Forestry
Conservation of Natural Resources
Community Development
Interest on Long -Term Debt
Water
Sewer
Total Expenses
CHANGE IN NET ASSETS
BEFORE TRANSFERS
Transfers
CHANGE IN NET ASSETS
Net Assets - Beginning of Year
NET ASSETS - END OF YEAR
Governmental Activities
2006 2005
Business -Type Activities Total
2006 2005
2006
2005
$ 1,570,002 $ 1,772,586 $ 2,566,874 $ 2,392,934 $ 4,136,876 $ 4,165,520
643,749 761,924 - - 643,749 761,924
5,963,204 10,128,024 1,535,631 1,733,775 7,498,835 11,861,799
8,128,684 7,247,977
140,408 134,487
852 951
713,794 433,387 253,787 120,310
33,217
100,000
60,955
17,193,910
2,886,825
3,516,376
3,871,968
1,162,458
156,592
691,880
926,021
13,212,120
3,981,790
(299,725)
3,682,065
20,640,291
2,941,279
3,091,174
9,187,436
799,335
150,092
383,211
797,341
17,349,868
3,290,423
(304,195)
2,986,228
4,356,292 4,247,019
976,575
1,228,123
876,592
1,217,825
2,204,698 2,094,417
8,128,684 7,247,977
140,408 134,487
852 951 °-
967,581 553,697
33,217 -
100,000
60,955
21,550,202 24,887,310
2,886,825 2,941,279
3,516,376 3,091,174
3,871,968 9,187,436
1,162,458 799,335
156,592 150,092
691,880 383,211
926,021 797,341
976,575 876,592
1,228,123 1,217,825 'R
15, 416, 818 19, 444, 285
2,151,594 2,152,602 6,133,384 5,443,025
299,725 304,195
2,451,319 2,456,797
6,133,384 5,443,025
51,088,083 48,101,855 33,915,170 31,458,373 85,003,253 79,560,228
$ 54,//0,148 $ 51,088,083 $ 36,366,489 $ 33,915,170 $ 91,136,637 $ 85,00d,253
14
OMNI
Mir
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
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
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
I
n
`eGCG \o� O\\-\"2"° Go��‘b� ze�eS�o�
Pates ' eNai ��`
ors
• Expenses
• Revenues
Revenues by Source — Governmental Activities
Unrestricted investment
earnings
4%
Franchise taxes
1%
Other
0%
Property taxes
47%
15
Charges for services
9%
Operating grants and
- contributions
4%
Capital grants and
contributions
35%
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
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
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
Water
Sewer
O Expenses
• Revenues
Revenues by Source — Business -type Activities
Capital grants and
contributions
35%
Other
16
Charges for services
59%
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
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 $16,155,382, a decrease of $5,147,604, or 24% lower than the previous year.
Approximately 68% of this total amount, or $10,950,496, 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 ($154,822), 2) to pay debt service ($3,992,952), 3) to
fund interfund advances ($957,112), or 4) to fund environmental improvements ($100,000).
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 $5,337,225, while the total fund balance was
$5,490,234. 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 68
percent of total general fund expenditures, while total fund balance represents 70 percent of that same
amount.
The fund balance of the City of Lino Lakes' general fund increased by $41,426 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. 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 slightly below the amended budget,
while expenditures were 3% below budgeted levels.
The G.O. improvement bonds 2005A fund has a total fund balance of $585,551, 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 $2,599,590, of which $957,112 is reserved for
advances to other funds, and $1,642,478 is unreserved and available for financing capital improvements.
The fund balance during the current year increased by was $20,692.
The Legacy Woods Edge improvement fund balance decreased by $2,080,970, to $265,927 as the
improvements were made within this development throughout 2006.
The Chain of Lakes YMCA fund was created to track the city's contribution toward the construction of the
Chain of Lakes YMCA. G.O. Tax Abatement bonds were issued and the contribution was made to the
YMCA project during the year, effectively bringing the fund balance in this fund to zero at year end.
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 of $15,232,576, of which $2,544,523 are unrestricted. The increase in
net assets of $1,232,148 was primarily due to contributions from private sources, an operating transfer
from a capital projects fund and operating income.
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
Total net assets in the sewer fund at the end of 2006 were $21,133,913, of which $4,336,024 was
unrestricted. Net assets increased $1,219,171 during the current year resulting primarily from
contributions from private sources and operating income.
The water and sewer rates remained the same in 2006 as in 2005. A rate study is planned for 2007.
GENERAL FUND BUDGETARY HIGHLIGHTS:
The original budget was amended four times during the year reflecting donations and grants received
primarily for police personnel and equipment.
Revenues were $70,709 under budget. Lower building activity and, therefore, fewer building permits being
issued was the largest contributing factor. Federal and state intergovernmental revenues, primarily police
grant related, were slightly over budget for the year. Local government grants were significantly over
budget due to unexpected grant funds being received. Investment earnings, due to rising interest rates
were also significantly over budget. Public safety charges for service were also over budget due to
greater than expected traffic control contracts. Expenditures came in under the budgeted amounts by
$205,836 due mainly to lower than expected personal services costs. There were also net transfers from
the general fund of $623,311. This resulted in a net fund balance increase of $41,426 for the fiscal year
which was $59,426 more than budgeted.
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, 2006, amounts to $82,750,797 (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. The total increase in the City of Lino Lakes'
investment in capital assets (net of accumulated depreciation) was 9 percent. Most of this increase within
the governmental activities can be found in the addition of constructed streets, underground infrastructure
and vehicles. Within the business -type activities the most significant increases occurred in infrastructure
installation in relation to the water and sewer funds.
Land
Construction in progress
Buildings
Office Equipment and Furniture
Vehicles
Machinery and Shop Equipment
Other Equipment
Infrastructure
Capital Assets, Net
Capital Assets at Year -End
(Net of Accumulated Depreciation)
Governmental Activities
2006
$ 2,809,059
5,066,936
4,593,749
514,309
951,072
291,928
408,798
36,523,576
Business -Type Activities Total
2005 2006
2005
$ 2,809,059 $ - $
4,756,524
429,158
741,617
251,406
464,472
35,998,547
$ 51,159,427 $ 45,450,783
2006 2005
$ 2,809,059
356,061
4,756,524
429,158
741,617
313,320
464,472
66,348,396 — $ 82,750,797 $ 76,218,607
$ 2,809,059
356,061 5,066,936
4,593,749
514,309
951,072
401,172
408,798
68,005,702
109,244 61,914
31,482,126 30,349,849
$ 31,591,370 $ 30,767,824
Additional information on the City's capital assets can be found in the notes to the financial statements on
pages 34 -54.
18
MEW
MIN
Maw
MEM
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
Long -term debt. At the end of the current fiscal year, the City of Lino Lakes had total bonded debt
outstanding of $25,557,000. Of this amount $7,747,000 comprises tax supported debt, $13,940,000 is
special assessment debt and $3,870,000 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.
G.O. Bonds
G.O. Special Assessment Bonds
G.O. Revenue Bonds
Total Outstanding Debt
Outstanding Debt at Year -End
Governmental Activities
2006
$ 7,747,000
13,940,000
2005
$ 5,335,000
19,405,000
$ 21,687,000 $ 24,740,000
Business -Type Activities
2006 2005
$ - $
3,870,000
$ 3,870,000
Total
2006
$ 7,747,000
13,940,000
2,425,000 3,870,000
$ 2,425,000 $ 25,557,000
2005
$ 5,335,000
19,405,000
2,425,000
$ 27,165,000
The City of Lino Lakes' total bonded debt decreased by $1,608,000 (6 percent) during the current fiscal
year. The primary reasons for the decrease were refunding of the 1998A and 1998B Improvement bonds
that were be called and retired in February, 2006, and the partial refunding of the 1998A Lease Revenue
Bonds that were called and retired on December 1, 2006.
The City of Lino Lakes received an Aa3 rating from Moody's Investors Service for general obligation debt.
The represents an upgrade from the prior rating of Al. More detailed information on the City's long -term
liabilities is presented in the notes to the financial statements.
Additional information on the City's long -term debt can be found in the notes to the financial statements on
pages 34 -54.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES:
• The unemployment rate for the City of Lino Lakes is currently 4.1 percent, which is a slight
increase from a rate of 3.8 percent a year ago. This compares favorably to the state's average
unemployment rate of 4.2 percent and the national average of 4.3 percent.
• The City of Lino Lakes continues to see increased commercial /industrial construction growth.
Residential growth has slowed due to the general residential real estate market downturn, with
less than half the number of new home permits issued in 2006 from 2005. This is expected to
level off in 2007 with the beginning of a recovery of the housing market later in the year.
• 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 is expected to be received in 2007.
• The Federal Reserve Board has increased the federal funds rates significantly, which is expected
to result in increases in the City's investment earnings.
19
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
REQUESTS FOR INFORMATION:
This financial report is designed to provide a general overview of the City of Lino Lakes' finances for all of
those with an interest in the government's finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Director of
Finance, City of Lino Lakes, 600 Town Center Parkway, Lino Lakes, Minnesota, 55014.
20
BASIC FINANCIAL STATEMENTS
NNW
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2006
Statement 1
Governmental Business -type
Activities Activities
Total
ASSETS
Cash and investments $ 15,872,714 $ 8,228,751 $ 24,101,465
Cash and investments with escrow agent 118,583 118,583
Accrued interest receivable 290,173 290,173
Accounts receivable 202,538 336,050 538,588
Due from other governments 143,582 - 143,582
INMe Taxes receivable 171,652 171,652
Special assessments receivable 9,897,321 130,705 10,028,026
Prepaid items 154,822 56,302 211,124
Unamortized bond issue costs 215,754 20,967 236,721
Permanently restricted cash and investments 100,000 100,000
Capital assets:
Land 2,809,059 2,809,059
Construction in progress 5,066,936 5,066,936
Other capital assets, net of depreciation 43,283,432 31,591,370 74,874,802
Total assets 78,326,566 40,364,145 118,690,711
LIABILITIES
Accounts payable 249,374 25,071 274,445
Salaries payable 110,315 3,920 114,235
Contracts and retainage payable 413,601 413,601
Accrued interest payable 364,415 58,510 422,925
Due to other governments 7,942 7,942
Other accrued liabilities 12,988 12,988
Non - current liabilities:
Due within one year 2,342,742 2,035,826 4,378,568
Due in more than one year 20,068,029 1,861,341 21,929,370
Total liabilities 23,556,418 3,997,656 27,554,074
NET ASSETS
Invested in capital assets, net of related debt 29,549,174 29,485,942 59,035,116
Restricted for:
_ Debt service 10,604,508 10,604,508
Environmental improvements - nonexpendable 100,000 100,000
Unrestricted 14,516,466 6,880,547 21,397,013
Total net assets $ 54,770,148 $ 36,366,489 $ 91,136,637
21
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF ACTIVITIES
Year Ended December 31, 2006
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
$ 2,886,825
3,516,376
3,871,968
1,162,458
156,592
691,880
926,021
13,212,120
976,575
1,228,123
2,204,698
$ 15,416,818
Program Revenues
Charges for
Services
$ 88,924
844,514
420,741
188,439
6,854
20,530
1,570,002
1,175,172
1,391,702
2,566,874
$ 4,136,876 $ 643,749
Operating
Grants and Capital Grants and
Contributions Contributions
$ 58,356 $
176,321
169,744
206,500
32,828
643,749
5,963,204
5,963,204
646,936
888,695
1,535,631
$ 7,498,835
General revenues:
Taxes:
Property taxes, levied for general purpose
Franchise Taxes
Other taxes
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
22
Statement 2
Net (Expense) Revenue and Changes in Net Assets
Governmental Business -type
Activities Activities
Total
(2,739,545) $ $ (2,739,545)
(2,495,541) (2,495,541)
2,681,721 2,681,721
(767,519) (767,519)
(116,910) (116,910)
(671,350) (671,350)
(926,021) (926,021)
(5,035,165) - (5,035,165)
845,533 845,533
1,052,274 1,052,274
1,897, 807 1,897,807
(5,035,165) 1,897,807 (3,137,358)
8,128,684 - 8,128,684
140,408 140,408
852 852
713,794 253,787 967,581
33,217 33,217
(299,725) 299,725
8,717,230 553,512 9,270,742
3,682,065 2,451,319 6,133,384
51,088,083 33,915,170 85,003,253
54,770,148 $ 36,366,489 $ 91,136,637
23
CITY OF LINO LAKES, MINNESOTA
BALANCE SHEET - GOVERNMENTAL FUNDS
December 31, 2006
Assets
Cash and investments
Cash and investments with escrow agent
Accrued interest receivable
Accounts receivable
Due from other governmental units
Interfund receivable
Taxes receivable:
Delinquent
Due from county
Delinquent tax increment
Special assessments receivable:
Delinquent
Deferred
Due from county
Prepaid items
Advances to other funds
Total assets
Liabilities and equity
Liabilities:
(nterfund payable
Accounts payable
Salaries payable
Contracts and retainage payable
Due to other governmental units
Advances from other funds
Deferred revenue
Total liabilities
Fund balances:
Reserved
Reserved for prepaid items
Reserved for debt retirement
Reserved for advances to other funds
Reserved for environmental improvements
Unreserved:
Designated:
General fund
Special revenue funds
Capital projects funds
Undesignated reported in:
Capital projects funds
Permanent funds
Total equity and other credits
Total liabilities and equity
General
$ 4,944,198
289,827
123,916
138,582
47,869
107,640
41,845
153,009
G.O.
Improvement
Bonds 2005A
$ 585,551 $ 1,650,076 $ 713,639
Area and Legacy
Unit Woods Edge
Charge Improvement
395,594
4,722,240
21,798
22,921
2,461,078
969
957,112
$ 5,846,886 $ 5,703,385 $ 5,113,954 $ 713,639
$ - $
132,760
110,132
6,120
8,422
21,943
107,640 5,117,834 2,483,999
356,652 5,117,834 2,514,364
153,009
5,337,225
585,551
5,490,234 585,551
$ 5,846,886 $ 5,703,385 $ 5,113,954 $ 713,639
957,112
1,642,478
64,990
382,722
447,712
265,927
2,599,590 265,927
The accompanying notes are an integral part of these basic financial statements.
24
Chain of Other
Lakes Governmental
YMCA Funds
$ $ 8,079,250
118,583
346
56,824
5,000
14,930
6,647
590
11,189
2,278,589
4,741
1,813
$ 10,578,502
$ 47,869
43,202
183
8,936
1,822
957,112
2,305,298
3,364,422
1,813
3,407,401
100,000
82,385
1,552,153
2,064,950
5,378
7,214,080
$ - $ 10,578,502
Statement 3
Total
Governmental
Funds
$ 15,972,714
118,583
290,173
202,538
143,582
47,869
122,570
48,492
590
429,704
9,461,907
5,710
154,822
957,112
$ 27,956,366
$ 47,869
249,374
110,315
413,601
7,942
957,112
10,014,771
11,800,984
154,822
3,992,952
957,112
100,000
5,337,225
82,385
3,194,631
2,330,877
5,378
16,155,382
$ 27,956,366
25
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET ASSETS
December 31, 2006
Statement 4
Total Fund Balances for Governmental Funds $ 16,155,382
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 5,066,936
Buildings, Net of Accumulated Depreciation 4,593,749
Office Equipment and Furniture, Net of Accumulated Depreciation 514,309
- Vehicles, Net of Accumulated Depreciation 951,072
Machinery and Shop Equipment, Net of Accumulated Depreciation 291,928
Other Equipment, Net of Accumulated Depreciation 408,798
Infrastructure, Net of Accumulated Depreciation 36,523,576 51,159,427
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. 10,014,771
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. 215,754
Interest on long -term debt is not accrued in governmental funds, but rather is recognized as an
expenditure when due. Accrued interest for general obligation bonds is included in the statement of
net assets.
Long -term liabilities that pertain to governmental funds, including bonds payable, are not due and
payable in the current period and therefore are not reported as fund liabilities. All liabilities - both
current and long -term - are reported in the statement of net assets. Balances at year -end are:
Bonds payable
Unamortized premiums
Unamortized discounts
Compensated absence payable
Total Net Assets of Governmental Activities
The accompanying notes are an integral part of these basic financial statements.
26
(364,415)
(21,687,000)
(157,530)
18,523
(584,764) (22,410,771)
$ 54,770,148
CITY OF LINO LAKES, MINNESOTA
S'FA IEMENT OF REVENUES, EXPENDITURES, AND
CI IANGES IN FUND BALANCE - GOVERNMENTAL FUNDS
Year Ended December 31, 2006
G.O. Area and Legacy
Improvement Unit Woods Edge
Revenue: General Bonds 2005A Charge Improvement
General property taxes $ 6,750,224 $ - $ $ -
'I'ax increments -
Liccnses and permits 581,582 -
Intergovernmental 398,786 84,462 1,036,812
Special assessments 689 743,564 699,679 -
Charges for services 281,839 219,829
Fines and forfeits 101,518 -
Investment earnings 192,046 12,290 81,088 77,617
Refunds and reimbursements 14,279 -
Miscellaneous 166,884 22,420
Total revenue 8,487,847 755,854 1,107,478 1,114,429
Expenditures:
Current:
General government 1,875,895
Public safety 3,314,159 - -
Public works 983,506 535,136 3,193,788
Parks, recreation and forestry 759,479 - -
Conservation of natural resources 143,653 -
Community development 683,036
Capital outlay:
General government 12,077
Public safety 36,641 -
Public works 5,492 1,611
Parks, recreation and forestry - -
Conservation of natural resources 2,316
Community development 6,856
Debt service:
Principal
Interest and fiscal charges 208,015=
Total expenditures 7,823,110 208,015 535,136/ 3,195,399 ✓
Revenue over (under) expenditures 664,737 547,839 572,342 (2,080,970)
Other financing sources (uses):
Transfer in
Transfer out (623,311) (1,113,670)
Sale of property
Issuance of debt 564,585
Discount on bonds issued (2,565)
Premium on bonds issued
Payment to refunding bond escrow agent
Total other financing sources (uses) (623,311) (551,650)
Net increase (decrease) in fund balance
Fund balance
Beginning of year
Fund balance - December 31
41,426 547,839 20,692 (2,080,970)
5,448,808 37,712 2,578,898 2,346,897
$ 5.490,234 $ 585,551 $ 2,599,590 $ 265,927
The accompanying notes are an integral part of these basic financial statements.
27
Statement 5
Chain of Other Total
Lakes Governmental Governmental
YMCA Funds Funds
$ 896,519 $ 7,646,743
456,520 456,520
581,582
298,459 1,818,519
1,457,168 2,901,100
185,883 687,551
101,518
823 349,931 713,795
61,180 75,459
- 451,929 641,233
823 4,157,589 15,624,020
2,381,419
738,408 2,614,303
- 3,314,159
661,878 7,755,727
317,248 1,076,727
143,653
683,036
116,845 128,922
211,911 248,552
324,570 331,673
117,451 117,451
2,316
6,856
2,155,000 2,155,000
- 7 803,142 1,011,157 V
2,381,419 J 5,446,453 19,589,532
(2,380,596) (1,288,864) (3,965,512)
5,811 ,452 5,81 1,452
(18,044) (4,356,152) (6,111,177)
28,818 28,818
2,409,710 3,352,705 6,327,000
(11,070) - (13,635)
450 450
(7,225,000) (7,225,000)
2,380,596 (2,387,727) (1,182,092)
(3,676,591) (5,147,604)
10,890,671 21,302,986
$ 7,214,080 $ 16,155,382
28
CITY OF LINO LAKES, MINNESOTA Statement 6
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES
Year Ended December 31, 2006
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 6,900,199
Contributed capital assets 1,511,826
Gain on disposal of capital assets 33,217
Proceeds from sales of capital assets (43,856)
Depreciation expense (2,692,742)
The governmental funds report bond proceeds as financing sources, while repayment
of bond principal is reported as an expenditure. In the statement of net assets,
however, issuing debt increases long -term liabilities and does not affect the statement
of activities and repayment of principal reduces the liability. Also, governmental
funds report the effect of issuance costs, premiums and discounts when debt is first
issued, whereas these amounts are deferred and amortized in the statement of
activities. Interest is recognized as an expenditure in the governmental funds when it
is due. In the statement of activities, however, interest expense is recognized as it
accrues, regardless of when it is due. The net effect of these differences in the
treatment of general obligation bonds and related items is as follows:
Issuance of general obligation bonds
Issuance of equipment certificates
Payment to refunded bond escrow agent
Bond premium
Bond discount
Bond issuance costs
Repayment of bond principal
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, 2005
Deferred revenue - December 31, 2006
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 2006, compensated absence payable
increased.
Change in Net Assets of Governmental Activities
The accompanying notes are an integral part of these basic financial statements.
29
$ (5,147,604)
5,708,644
(6,020,000)
(307,000)
7,225,000
(450)
13,635
85,852
2,155,000
(5,527)
(13,569)
19,086
(706) $ 3,151,321
$ 9,974,886
10,014,771 $ 39,885
(70,181)
$ 3,682,065
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS - PROPRIETARY FUNDS
December 31, 2006
Statement 7
Assets
Current assets:
Cash and cash equivalents
Accounts receivable
Prepaid items
Unamortized bond issue costs
Total current assets
Non- current assets:
Special assessments, long term
Capital assets:
Buildings
Equipment
Water and sewer systems
Total capital assets
Less: allowance for depreciation
Net capital assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Salaries payable
Other accrued liabilities
Accrued interest payable
Bonds payable - current portion
Compensated absences payable - current portion
Total current liabilities
Non- current liabilities:
Bonds payable - long term
Compensated absences payable - long term
Total noncurrent liabilities
Total liabilities
Net assets
Invested in capital assets, net of related debt
Unrestricted
Total net assets
The accompanying notes are an integral part of these basic financial statements.
30
Water
$ 4,113,623
143,482
5,361
20,967
4,283,433
130,705
48,690
108,296
18,189, 822
18,346,808
(3,553,327)
14,793,481
14,924,186
19,207,619
$ 19,859
2,040
12,988
58,510
2,015,000
10,413
2,118,810
1,851,125
5,108
1,856,233
3,975,043
Sewer
$ 4,115,128
192,568
50,941
4,358,637
210,570
20,783,469
20,994,039
(4,196,150)
16,797,889
16,797,889
21,156,526
$ 5,212
1,880
10,413
17,505
5,108
5,108
22,613
Totals
2006
$ 8,228,751
336,050
56,302
20,967
8,642,070
130,705
48,690
318,866
38,973,291
39,340,847
(7,749,477)
31,591,370
31,722,075
40,364,145
$ 25,071
3,920
12,988
58,510
2,015,000
20,826
2,136,315
1,851,125
10,216
1,861,341
3,997,656
12,688,053 16,797,889 29,485,942
2,544,523 4,336,024 6,880,547
$ 15,232,576 $ 21,133,913 $ 36,366,489
CITY OF LINO LAKES, MINNESOTA Statement 8
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - PROPRIETARY FUNDS
Year Ended December 31, 2006
Operating revenue:
Charges for services
Hook -up charges
Water meter sales
Other operating revenue
Total operating revenue
Water
Totals
Sewer 2006
$ 1,107,107 $ 1,371,832 $ 2,478,939
26,321 19,870 46,191
32,783 32,783
8,961 8,961
1,175,172 1,391,702 2,566,874
Operating expenses:
Personal services 164,548 151,643 316,191
Materials and supplies 219,842 23,184 243,026
Contractual services 41,310 77,895 119,205
MCES sewer charges 537,824" 537,824
Depreciation 353,349 404,200 757,549
Utilities 53,078 25,111 78,189
Other 15,230 8,266 23,496
Total operating expenses 847,357 / 1,228,123 / 2,075,480
Net income from operations 327,815 163,579 491,394
Other income (expense):
Investment earnings
Special assessments
Bond interest
Paying agent fees
Total other income (expense)
Net income before contributions and transfers
Contributions and transfers:
Contributions from private sources
Transfer in
Total contributions and transfers
Net income
Net Assets - January 1
Net Assets - December 31
The accompanying notes are an integral part of these basic financial statements.
31
86,890 166,897 253,787
11,171 109 11,280
(127,254) ' (127,254)
(1,964) i" (1,964)
(31,157) 167,006 135,849
296,658 330,585 627,243
635,765 888,586 1,524,351
299,725 299,725
935,490 888,586 1,824,076
1,232,148 1,219,171 2,451,319
14,000,428 19,914,742 33,915,170
$ 15,232,576 $ 21,133,913 $ 36,366,489
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
Year Ended December 31, 2006
Statement 9
Cash flows from operating activities:
Cash receipts from customers
Cash paid to suppliers
Cash paid to employees
Wan Net cash flows from operating activities
Cash flows from noncapital financing activities:
Transfer from capital project funds
Net cash flows from noncapital financing activities
Cash tows 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:
law
Immo
Interest on investments
Net increase 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
Sewer
Totals
2006
$ 1,162,292 $ 1,369,295 $ 2,531,587
(356,659) (716,671) (1,073,330)
(152,176) (150,832) (303,008)
653,457 501,792 1,155,249
299,725
299,725
(295,000)
1,735,998
28,663
(151,334)
(4,302)
1,314,025
86,890
2,354,097
1,759,526
$ 4,113,623
817
(52,442)
(51,625)
166,897
617,064
3,498,064
$ 4,115,128
$ 327,815 $
353,349
(12,880)
(216)
(14,611)
$ 653,457 $
- Water lines in the amount of $635,765 were contributed to the Water Fund in 2006.
- Sewer lines in the amount of $888,586 were contributed to the Sewer Fund in 2006.
The accompanying notes are an integral part of these basic financial statements.
32
163,579
404,200
(22,407)
(44,991)
1,411
501,792
299,725
299,725
(295,000)
1,735,998
29,480
(151,334)
(56,744)
1,262,400
253,787
2,971,161
5,257,590
$ 8,228,751
$ 491,394
757,549
(35,287)
(45,207)
(13,200)
$ 1,155,249
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS - FIDUCIARY FUNDS
December 31, 2006
Statement 10
Assets
Cash and investments
Deposits receivable
Total assets
Liabilities
Accounts payable
Deposits payable
Totals
2006
$ 1,103,463
10,520
$ 1,113,983
$ 17,213
1,096,770
Total liabilities $ 1,113,983
The accompanying notes are an integral part of these financial statements.
33
WINO
MIN
IMm
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Lino Lakes is a public corporation formed under Minnesota Statute 410. As such, the City is under
home rule charter regulations and applicable statutory guidelines.
The basic financial statements of the City of Lino Lakes have been prepared in conformity with U.S. generally
accepted accounting principles as applied to governmental units by the Governmental Accounting Standards
Board (GASB). The following is a summary of the significant accounting policies:
A. FINANCIAL REPORTING ENTITY
As required by U.S. generally accepted accounting principles, the financial statements of the reporting
entity include those of the City of Lino Lakes and its component units. A component unit is a legally
separate entity for which the primary government is financially accountable, or for which the exclusion
of the component unit would render the financial statements of the primary government misleading.
The criteria used to determine if the primary government is financially accountable for a component
include whether or not the primary government appoints the voting majority of the potential component
unit's board, is able to impose its will on the potential component unit, is in a relationship of financial
benefit or burden with the potential component unit, or is fiscally depended upon by the potential
component unit.
COMPONENT UNITS
In conformity with U.S. generally accepted accounting principles, the financial statements of
component units have been included in the financial reporting entity either as blended component units
or as discretely presented component units.
Blended Component Units
The Economic Development Authority (EDA) of Lino Lakes is an entity legally separate from the City.
However, for financial reporting purposes, the EDA is reported as if it were part of the City's
operations because the members of the City Council serve as commission members. The EDA does not
issue separate financial statements. The Housing and Redevelopment Authority (HRA) of Lino Lakes is
an entity legally separate from the City. However, for financial reporting purposes, the HRA is
reported as if it were part of the City's operations because the members of the City Council serve as
commission members. The HRA has not yet incurred any financial activity.
B. BASIC FINANCIAL STATEMENTS
1. Government -Wide Statements
The government -wide financial statements (i.e., the statement of net assets and the statement of
activities) display information about the primary government and its component units. These
statements include the financial activities of the overall City government, except for fiduciary activities.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business -type activities, which rely to a significant extent on fees and charges
to external parties for support. As a general rule, the effect of interfund activity has been eliminated
from the government -wide financial statements. Exceptions to this general rule are charges between the
City's enterprise funds and various other functions of government. Eliminations of these charges would
distort the direct costs and program revenues reported for the various functions concerned.
34
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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.
2. Fund Financial Statements
The fund financial statements provide information about the City's funds, including its fiduciary funds
and blended component unit. Separate statements for each fund category (governmental, proprietary,
and fiduciary) are presented. The emphasis of governmental and proprietary fund financial statements
is on major individual governmental and enterprise funds, with each displayed as separate columns in
the fund financial statements. All remaining governmental and enterprise funds are aggregated and
reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each party
receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and
investment earnings, result from nonexchange transactions or incidental activities.
The City reports the following major governmental funds:
General Fund
The general fund is the City's primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
General Obligation Improvement Bonds 2005A Fund
The general obligation improvement bonds 2005A fund accounts for the accumulation of resources for,
and the payment of, interest, principal and related costs on general long -term debt.
Area and Unit Charge Fund
The area and unit charge fund accounts for the collection of water and sewer unit charges to be used for
debt payments and construction of infrastructure.
Legacy Woods Edge Improvement Fund
The Legacy Woods Edge Improvement fund accounts for construction costs related to infrastructure
improvements in the Legacy Woods Edge development
35
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. BASIC FINANCIAL STATEMENTS (CONTINUED)
2. Fund Financial Statements (Continued)
Chain of Lakes YMCA
The Chain of Lakes YMCA fund accounts for construction costs related to infrastructure improvements
for the Chain of Lakes YMCA.
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 fmancial statements are reported using the economic
resources measurement focus and the accrual basis of accounting. Agency funds, which are included
in the Fiduciary Funds, do not have a measurement focus. Revenues are recorded when earned, and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have
been met.
Private - sector standards of accounting and financial reporting issued on or before November 30, 1989,
generally are followed in both the government -wide and proprietary fund financial statements to the
extent that those standards do not conflict with or contradict guidance of the Governmental Accounting
Standards Board. Governments also have the option of following subsequent private- sector guidance
for their business -type activities and enterprise funds, subject to this same limitation. The City has
elected not to follow subsequent private- sector guidance.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. The City considers all revenues to be available if they are collected within 60
days after the end of the current period. Property and other taxes, licenses, and interest are all
considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is
incurred, except for principal and interest on general long -term debt, compensated absences, and claims
and judgments, which are recognized as expenditures to the extent that they have matured. Proceeds of
general long -term debt and acquisitions under capital leases are reported as other financing sources.
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, then unrestricted resources as they are needed.
36
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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 interdepartinental or interfund appropriations and deletions are or may be authorized by
the City Council with fund (contingency) reserves or additional revenues.
5. Formal budgetary integration is employed as a management control device during the year for the
General Fund.
37
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUEDI
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 2006 totaled
$745,501. Receipt of property taxes from this "fiscal disparities pool" does not increase or decrease
total tax revenue.
I. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of
special assessment improvement projects in accordance with State Statutes. These assessments are
collectible by the City over a term of years usually consistent with the term of the related bond issue.
Collection of annual installments (including interest) is handled by the County Auditor in the same
manner as property taxes. Property owners are allowed to (and often do) prepay future installments
without interest or prepayment penalties.
Within the fund financial statements, the revenue from special assessments is recognized by the City
when it becomes measurable and available to finance expenditures of the current fiscal period. In
practice, current and delinquent special assessments received by the City are recognized as revenue for
the current year. Special assessments are collected by the County and remitted by December 31
(remitted to the City the following January) and are also recognized as revenue for the current year. All
remaining delinquent, deferred and special deferred assessments receivable in governmental funding
are completely offset by deferred revenues. Deferred revenue in governmental activities is susceptible
to full accrual on the government -wide statements.
39
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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.
40
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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.
41
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 2 DEPOSITS AND INVESTMENTS
A. Deposits
The City maintains a cash and investment pool that is available for use by all funds. Each fund
type's portion of this pool is displayed on the statement of net assets and the balance sheet as
"Cash and Investments." In accordance with Minnesota Statutes the City maintains deposits at
financial institutions which are authorized by the City Council.
Custodial Credit Risk — Custodial credit risk for deposits is the risk that in the event of a bank
failure, the City's deposits may not be returned to it. The City does not have a specific deposit
policy for custodial credit risk but rather follows Minnesota Statutes for deposits. Minnesota
Statutes require that all deposits be protected by insurance, surety bond, or collateral. The
market value of collateral pledged must equal 110% of the deposits not covered by insurance
or corporate surety bonds. Authorized collateral include: U.S. government treasury bills,
notes, or bonds; issues of a U.S. government agency; general obligations of a state or local
government rated "A" or better; revenue obligations of a state or local government rated "AA"
or better; irrevocable standby letter of credit issued by a Federal Home Loan Bank; and time
deposits insured by a federal agency. Minnesota statutes require securities pledged as
collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or at an
account at a trust departments of a commercial bank or other financial institution not owned or
controlled by the depository.
The carrying value and bank balance of the City's deposits in banks at December 31, 2006 is
$1,597,527 and $2,028,444, 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
• Bankers 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.
42
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
At December 31, 2006, the City's investment balances were as follows:
Cash Investments Held by Trustee —
Type
Mutual Funds
Amount
$ 118,583
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, the Public Project Revenue Refunding Bonds Series 1999C, and CIP
Refunding bonds 2006E. The proceeds of these issues were used to finance the construction of the
Civic Complex, to refund the 2000 through 2010 maturities of the City's 1990A Public Project
Revenue Bonds, and to partially refund the 1998A Civic Complex Lease Revenue Bonds.
Investments Held with Broker —
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair
value to changes in market interest rates. The City's policy to minimize interest rate risk includes
investing primarily' in short-term securities and structuring the investment portfolio so that
securities mature to meet cash requirements for ongoing operations. Information about the
sensitivity of the fair values of the City's investments to market interest rate risk fluctuations is
provided by the following table that shows the distribution of the City's investments by maturity:
12 Months 13 to 24 25 to 60 More than
Type Total or Less Months Months 60 Months
Minnesota Municipal Money
Market Trust Fund $ 737,598 $ 737,598 $ $ $ -
Commercial Paper 12,660,093 12,660,093 - -
Govemment Agencies 9,579,318 5,731,449 2,867,461 588,782 391,626
Mutual Fund 252,572 252,572 - - -
Total $ 23,229,581 $ 19,381,712 $ 2,867,461 $ 588,782 $ 391,626
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 $ 737,598
Commercial Paper P -1 9,904,020
Commercial Paper Not Rated 2,756,073
Govemment Agencies Aaa 9,579,318
Mutual Fund Not Rated 252,572
Total $ 23,229,581
43
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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 $ 5,880,499 25.31%
Federal Home Loan Mortgage Corporation 2,877,466 12.39%
Mitsubishi Commercial Paper 2,561,206 11.03%
Panterra Commercial Paper 1,699,120 7.31%
General Electric Capital Services Commercial Paper 1,499,916 6.46%
44
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2006 was as follows:
Beginning
Balance
Increases
Decreases
Ending
Balance
Governmental Activities:
Capital Assets, Not Being Depreciated
Land $ 2,809,059 $ - $ - $ 2,809,059
Construction in Progress - 5,066,936 - 5,066,936
Total Capital Assets, Not Being Depreciated 2,809,059 5,066,936 7,875,995
Capital Assets, Being Depreciated:
Buildings 6,444,455 52,415 6,496,870
Office Equipment and Furniture 969,182 159,555 (69,655) 1,059,082
Vehicles 1,522,524 389,288 (184,187) 1,727,625
Machinery and Shop Equipment 687,177 83,967 (30,399) 740,745
Other Equipment 960,837 960,837
Infrastructure 67,328,650 2,659,864 - 69,988,514
Total Capital Assets, Being Depreciated 77,912,825 3,345,089 (284,241) 80,973,673
Accumulated Depreciation for:
Buildings (1,687,931) (215,190) - (1,903,121)
Office Equipment and Furniture (540,024) (74,404) 69,655 (544,773)
Vehicles (780,907) (178,433) 182,787 (776,553)
Machinery and Shop Equipment (435,771) (34,206) 21,160 (448,817)
Other Equipment (496,365) (55,674) - (552,039)
Infrastructure (31,330,103) (2,134,835) (33,464,938)
Total Accumulated Depreciation (35,271,101) (2,692,742) 273,602 (37,690,241)
Total Capital Assets, Being Depreciated, Net 42,641,724 652,347 (10,639) 43,283,432
Governmental Activities Capital Assets, Net $ 45,450,783 $ 5,719,283 $ (10,639) $ 51,159,427
Depreciation expense was charged to governmental functions as follows:
Governmental Activities:
General Government $ 259,907
Public Safety 106,244
Public Services 2,148,248
Parks, Recreation and Forestry 177,843
Community Development 500
Total Depreciation Expense, Governmental Activities $ 2,692,742
Beginning
Balance Increases
Business -Type Activities:
Capital Assets, Not Being Depreciated
Construction in Progress
Total capital assets, not being depreciated
Capital Assets, Being Depreciated:
Buildings
Machinery and Shop Equipment
Water and Sewer Lines
Total Capital Assets, Being Depreciated
Decreases
Ending
Balance
$ 356,061 $ - $ (356,061) $
356,061 - (356,061)
48,690
265,977 56,718
37,094,480 1,880,438
37,409,147 1,937,156
48,690
(3,829) 318,866
(1,627) 38,973,291
(5,456) 39,340,847
Accumulated Depreciation for:
Buildings (48,690) (48,690)
Machinery and Shop Equipment (204,063) (9,388) 3,829 (209,622)
Water and Sewer Lines (6,744,631) (748,161) 1,627 (7,491,165)
Total Accumulated Depreciation (6,997,384) (757,549) 5,456 (7,749,477)
Total Capital Assets, Being Depreciated, Net 30,411,763 1,179,607 31,591,370
Business -Type Capital Assets, Net $ 30,767,824 $ 1,179,607 $ (356,061) $ 31,591,370
45
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 4 CITY INDEBTEDNESS
City indebtedness at December 31, 2006 is composed of the following:
Final
Issue Maturity Interest Original
Date Date Rate Issue
Payable
12/31/2006
Governmental Activities:
General Obligation Bonds:
2004A Equipment Certificates 2/1/2004 12/31/2007 4.00% $ 274,000 $ 98,000
2005A Equipment Certificates 2/1/2005 12/31/2008 4.00% 107,000 72,000
2006A Equipment Certificates 2/1/2006 12/31/2009 4.00% 307,000 307,000
Civic Complex Lease Rev. Bonds, Series 1998A 8/1/1998 2/1/2019 4.20%-5.35% 5,350,000 865,000
Public Project Revenue Ref. Bonds, Series 1999C 9/1/1999 2/1/2010 4.75% -5.10% 980,000 385,000
G.O. Tax Abatement Bonds, Series 2006C 8/15/2006 2/1/2023 4.00% -4.30% 2,460,000 2,460,000
G.O. Utility Revenue Bonds, Series 2006D 8/15/2006 2/1/2017 4.00 % -4.15% 570,000 570,000
G.O.CIP Refunding Bonds, Series 2006E 11/1/2006 2/1/2018 4.00% 2,990,000 2,990,000
Total General Obligation Bonds 13,038,000 7,747,000
Special Assessment Bonds:
G.O. Improvement Bonds, Series 2002A 8/1/2002 2/1/2013 3.00 % - 4.10% 645,000 355,000
G.O. Improvement Bonds, Series 2002B 8/1/2002 2/1/2013 3.20%-5.55% 2,110,000 1,580,000
G.O. Improvement Refunding Bonds, Series 2003A 12/1/2003 2/1/2019 3.00 % -4.10% 2,090,000 1,210,000
G.O. Improvement Bonds, Series 2003B 12/1/2003 2/1/2014 3.20% -5.55% 250,000 225,000
G.O. Improvement and Utility Bonds, Series 2004A 11/15/2004 2/1/2020 1.90 % - 4.45% 1,330,000 1,265,000
G.O. Improvement Bonds, Series 2005A 11/1/2005 2/1/2021 4.35%-5.15% 5,550,000 5,550,000
G.O. Improvement Refunding Bonds, Series 2005B 11/1/2005 2/1/2015 3.75%-5.00% 3,755,000 3,755,000
Total Special Assessment Bonds 15,730,000 13,940,000
Total Bonds 28,768,000 21,687,000
Unamortized Bond Discounts (6,057) (18,523)
Unamortized Bond Premiums 179,797 157,530
Compensated Absences Payable N/A 584,764
Total Governmental Activities $ 28,941,740 $ 22,410,771
Business -Type Activities:
Revenue Bonds:
G.O. Water Revenue Bonds, Series 1996B 10/1/1996 2/1/2012 4.10%-5.70% $ 3,320,000 $ 1,910,000
G.O. Water Revenue Refunding Bonds, Series 1999B 9/1/1999 2/1/2008 4.25% -4.90% 680,000 220,000
G.O. Water Revenue Refunding Bonds, Series 2006F 11/1/2006 2/1/2012 3.55%-3.625% 1,740,000 1.740,000
Total Revenue Bonds 5,740,000 3,870,000
Unamortized Bond Discounts (4,002) (3,875)
Compensated Absences Payable N/A 31,042
Total Business -Type Activities $ 5,735,998 $ 3,897,167
46
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 4 CITY INDEBTEDNESS (CONTINUED)
The following is a schedule of changes in City indebtedness for the year ended December 31, 2006:
Govcrnmental activities:
Bonded debt:
General Obligation
Special Assessment
Unamortized Bond Discounts
Unamortized Bond Premiums
Compensated Absences Payable
Total Governmental Activities
Business -Type Activities:
Revenue Bonds
Unamortized Bond Discounts
Compensated Absences Payable
Total Business -Type Activities
Total
Payable Payable Due Within
12/31/2005 Issues Payments 12/31/2006 One Year
$ 5,335,000 $ 6,327,000 $ 3,915,000 $ 7,747,000 $ 553,000
19,405,000 - 5,465,000 13,940,000 1,420,000
(5,594) (13,635) (706) (18,523)
176,166 450 19,086 157,530
514,583 481,321 411,140 584,764 369,742
25,425,155 6,795,136 9,809,520 22,410,771 2,342,742
2,425,000 1,740,000 295,000 3,870,000 2,015,000
(4,002) (127) (3,875)
27,500 25,603 22,061 31,042 20,826
2,452,500 1,761,601 316,934 3,897,167 2,035,826
$ 27,877,655 $ 8,556,737 $ 10,126,454 $ 26,307,938 $ 4,378,568
All long -term bonded indebtedness outstanding at December 31, 2006 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.
Years ending December 31,
2007
2008
2009
2010
2011
2012 -2016
2017 - 2021
2022 - 2023
Total
Governmental Activities Business -Type Activities
Principal
Interest Principal Interest Total
$ 1,973,000 $ 896,348 $ 2,015,000 $ 107,437 $ 4,991,785
1,699,000 844,898 325,000 61,546 2,930,444
1,625,000 772,961 360,000 48,611 2,806,572
1,460,000 702,373 375,000 35,471 2,572,844
1,560,000 636,818 390,000 21,701 2,608,519
7,700,000 2,100,156 405,000 7,341 10,212,497
5,055,000 663,448 5,718,448
615,000 26,983 641,983
$ 21,687,000 $ 6,643,985 $ 3.870,000 $ 282,107 $ 32,483,092
Description and Restrictions of Long -Term Debt
General Obligation Bonds - The bonds were issued for improvements or projects which benefited the City
as a whole and are, therefore, repaid from ad valorem levies.
Special Assessment Bonds - These bonds were issued to finance various improvements and will be repaid
primarily from special assessments levied on the properties benefiting from the improvements. However,
some issues are partly financed by ad valorem levies.
47
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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.
On November 1, 2006 the City issued $2,990,000 of General Obligation Capital Improvement Plan
Refunding Bonds, Series 2006E. The proceeds were used on December 1, 2006 to prepay a portion of the
February 1, 2010 sinking fund payment and the February 1, 2011 through February 1, 2019 sinking fund
payments (representing a portion of the February 1, 2011 term bond, and all of the February 1, 2013 and
February 1, 2019 term bonds) of the Lino Lakes Economic Development Authority's Lease Revenue Bonds,
Series 1998A. This partial refunding reduced the City's total future debt service payments by approximately
$353,728, and resulted in a present value savings of approximately $237,273.
On November 1, 2006 the City issued $1,740,000 of General Obligation Water Revenue Refunding Bonds,
Series 2006F. The proceeds will be used to prepay the February 1, 2008 through February 1, 2012
maturities of the City's General Obligation Water Revenue Bonds, Series 1996B. This "crossover
refunding" reduced the City's total future debt service payments by approximately $73,160, and resulted in a
present value savings of approximately $75,521.
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 2006 is computed as
follows:
Market value
Applicable percentage
Debt Limit
Amount of debt applicable to debt limit:
Total bonded debt
Less: Special assessment bonds
Public project revenue bonds
Tax abatement bonds
Utility revenue bonds
Revenue bonds
Total debt applicable to debt limit
Legal debt margin
12/31/06
5 1,734,317,800
2.0%
34.686,356
25,557,000
(13,940,000)
(385,000)
(2,460,000)
(570,000)
(3,870,000)
4,332,000
$ 30,354,356
48
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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.
49
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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 5.50% respectively, of their annual
covered salary. Contribution rates in the Coordinated Plan will increase in 2007 to 5.75 %. PEPFF
members were required to contribute 7.0% of their annual covered salary in 2006. That rate will
increase to 7.8% in 2007. The City is required to contribute the following percentages of annual
covered payroll: 11.78% for Basic Plan PERF members, 6.0% for Coordinated Plan PERF members,
and 10.5% for PEPFF members. Employer contribution rates for the Coordinated Plan and PEPFF will
increase to 6.25% and 11.7 %, respectively, effectively January 1, 2007. The City's contributions to the
Public Employees Retirement Fund for the years ending December 31, 2006, 2005, and 2004 were
$156,599, $136,230, and $128,263, respectively. The City's contributions to the Public Employees
Police & Fire Fund for the years ending December 31, 2006, 2005, and 2004 were $187,212,
$158,282, and $146,820, 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, 2006 as follows:
Fund Balance
Deficit
Dedicated Parks $ (735,240)
Tax Increment Financing 1 -11 (23,586)
CSAH 14/8 Reconstruction Project (24,730)
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 2006:
Budget Actual Excess
Program Recreation Special Revenue Fund $ 163,840 $ 182,690 $ (18,850)
50
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 9 CONTINGENCIES
Litigation - The City attorney has indicated that existing and pending lawsuits, claims and other actions in
which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment
of the City attorney, remotely recoverable by plaintiffs.
Federal and State Funds - The City receives financial assistance from federal and state governmental
agencies in the form of grants. The disbursement of funds received under these programs generally requires
compliance with the terms and conditions specified in the grant agreements and is subject to audit by the
grantor agencies. Any disallowed claims resulting from such audits could become a liability of the
applicable fund. However, in the opinion of management, any such disallowed claims will not have a
material effect on any of the financial statements of the individual fund types included herein or on the
overall financial position of the City at December 31, 2006.
Note 10 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
General Obligation bond issues sold by the City are financed by ad valorem tax levies and special
assessment bond issues sold by the City are partially financed by ad valorem tax levies in addition to special
assessments levied against the benefiting properties. When a bond issue to be financed partially or
completely by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in the
bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate
years. The future tax levies are subject to cancellation when and if the City has provided alternative sources
of financing. The City Council is required to levy any additional taxes found necessary for full payment of
principal and interest.
These future scheduled tax levies are not shown as assets in the accompanying financial statements at
December 31, 2006.
Future scheduled tax levies for all bonds outstanding at December 31, 2006 totaled $23,527,497.
Note 11 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY
At December 31, 2006, 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, 2006 are shown on the various balance sheets as segregations of the fund equity. A summary
of such designations and reservations at December 31, 2006 is as follows:
Governmental Activity:
General Fund
Reserved for Prepaid Items $ 153,009
Designated for Cash Flow Reserve 5,337,225
Improvement Bonds of 2005A
Reserved for Debt Retirement 585,551
Area and Unit Charge
Reserved for Advance to Other Funds 957,112
Designated for Capital Improvements 1,642,478
Other Nonmajor Governmental Funds
Reserved for Prepaid Items 1,813
Reserved for Debt Retirement 3,407,401
Reserved for Environmental Improvements 100,000
Designated for Recreation Purposes 82,385
Designated for Capital Improvements 1,552,153
51
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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 2006 was $113,365.
Note 13 INTERFUND RECEIVABLE AND PAYABLES
Individual fund receivable and payable balances at December 31, 2006 are as follows:
Receivable
Payable
Governmental Activity:
General Fund $ 47,869 $
Other Nonmajor Governmental Funds -
$ 47,869
47,869
$ 47,869
Interfund receivable and payable balances represent the elimination of negative cash between funds.
Note 14 INTERFUND TRANSFERS
Individual fund transfers for fiscal year 2006 are as follows:
Governmental Activity:
General Fund
Area and Unit Charge
Legacy Woods Edge Improvement Fund
Chain of Lakes YMCA
Other Nonmajor Governmental Funds
Total Governmental Activity
Business -Type Activity:
Water Fund
Transfer In
Transfer Out
$ (623,311)
- (1,113,670)
5,811,452
5,811,452
299,725
$ 6,111,177
(18,044)
(4,356,152)
(6,111,177)
$ (6,111,177)
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.
52
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 15 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;
errors and omissions; injuries to employees; and natural disasters.
Workers compensation coverage is provided through a pooled self - insurance program through the League
of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is
subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through
Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation,
the City is not subject to a deductible. The City's workers compensation coverage is retrospectively rated.
With this type of coverage, final premiums are determined after loss experience is known. The amount of
premium adjustment, if any, is considered immaterial and not recorded until received or paid.
Property and casualty insurance is provided through a pooled self-insurance program through the LMCIT.
The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if
deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in
excess of various amounts. The City retains risk for the deductible portion of the insurance policies and for
any exclusions from the insurance policies. These amounts are considered immaterial to the financial
statements.
The City continues to carry commercial insurance for all other risks of loss, including disability and
employee health insurance.
There were no significant reductions in insurance from the previous year or settlements in excess of
insurance coverage for any of the past three fiscal years.
Note 16 CONDUIT DEBT OBLIGATIONS
The City has issued Industrial Development Revenue Bonds and Commercial Revenue Notes to provide
financial assistance to private- sector entities for the acquisition and construction of industrial and
commercial facilities which are deemed to be in the public interest. The bonds are secured by the property
financed and are payable solely from payments on the underlying mortgage loans. Upon repayment of the
bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issue.
The City is not obligated in any manner for the repayment of the bonds. Accordingly, the bonds are not
reported as liabilities in the accompanying financial statements. As of December 31, 2006, two series of
Industrial Revenue Bonds were outstanding with aggregate remaining principal balances of $1,435,000 and
$2,400,000, respectively, and two series Commercial Revenue Notes were outstanding with an aggregate
remaining principal balance of $3,500,000 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
2007 $ 112,500
2008 112,500
2009 75,000
Total $ 300,000
53
Maw
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 17 LEASE COMMITMENT (CONTINUED)
The prorated carrying value of the building being leased is as follows:
Building $ 929,970
Less Accumulated Depreciation (216,993)
Net $ 712,977
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 2006, the City of Lino Lakes' contributions to the District were as follows:
Operating $ 412,726
Capital 68,800
Total $ 481,526
Separate financial statements of the District can be obtained by contacting the Centennial Fire District.
The audited condensed financial statements of the District as of December 31, 2006 are as follows:
Total Assets $ 922,572
Total Liabilities 72,267
Total Net Assets 850,305
Total Operating Revenue 623,113
Total Operating Expenses 620,213
REQUIRED SUPPLEMENTARY INFORMATION
CI'T'Y OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2006
Statement 11
Page 1 of 7
2006
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative
Revenue:
General property taxes:
Current and delinquent $ 6,752,626 $ 6,752,626 $ 6,092,038 $ (660,588)
Fiscal disparities - - 658,186 658,186
Total general property taxes 6,752,626 6,752,626 6,750,224 (2,402)
Licenses and permits:
-
Business 37,950 37,950 39,621 1,671
Non - business 831,150 831,150 541,961 (289,189)
Total licenses and permits 869,100 869,100 581,582 (287,518)
Intergovernmental:
Federal:
Other 25,000 25,000 16,127 (8,873)
State:
Market Value Credit 3,579 3,579
Police state aid 130,000 130,000 159,105 29,105
MSA maintenance 160,000 160,000 147,324 (12,676)
Other 15,000 15,000 11,880 (3,120)
County/Regional:
Solid waste 35,000 35,000 32,828 (2,172)
Other 5,000 5,000 27,943 22,943
Total intergovernmental 370,000 370,000 398,786 28,786
Special Assessments:
Penalties and Interest 5,000 5,000 689 (4,311)
Charges for services:
General government 27,500 27,500 28,866 1,366
Planning/engineering 15,000 15,000 8,200 (6,800)
Fees retained from collection for
other governments - SAC /surcharge 4,000 4,000 4,139 139
Administrative charge - other funds 55,000 55,000 50,000 (5,000)
Aerial map charge - other funds 12,000 12,000 12,330 330
Public safety 86,000 91,600 178,304 86,704
Total charges for services 199,500 205,100 281,839 76,739
Fines and forfeits 110,000 110,000 101,518 (8,482)
Investment earnings 80,000 80,000 192,046 112,046
Refunds and reimbursements 20,000 20,000 14,279 (5,721)
Miscellaneous:
Gas franchise fees 115,000 115,000 113,365 (1,635)
Cable TV 24,000 24,000 27,043 3,043
Donations 5,000 7,730 2,730 (5,000)
Other - 23,746 23,746
,,_ Total miscellaneous 144,000 146,730 166,884 20,154
Total Revenue
WIMP
8,550,226 8,558,556 8,487,847 (70,709)
55
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2006
2006
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 $ 41,521 $ 41,521 $ 34,172 $ 7,349
Supplies 400 400 538 (138)
Other services and charges 78,590 78,590 79,531 (941)
Contractual Services 34,246 34,246 28,437 - 5,809
Total mayor and council 154,757 154,757 142,678 / 12,079
Elections:
Current
Personal services 24,050 24,050 17,226 6,824
Supplies 100 100 337 (237)
Other services and charges 400 400 1,679 (1,279)
Contractual Services 1,000 1,000 175 825
Capital outlay 18,000 18,000 2,919 15,081
Total elections 43,550 43,550 22,336 / 21,214
Administration:
Current
Personal services 441,351 441,351 418,563 22,788
Supplies - - 10 (10)
Other services and charges 20,100 20,100 19,637 463
Contractual Services 10,800 10,800 15,787 (4,987)
Total administration 472,251 472,251 453,997 ` 18,254
Finance:
Current
Personal services 283,231 283,231 275,841 7,390
Supplies 1,500 1,500 1,040 460
Other services and charges 58,700 58,700 49,882 8,818
Contractual Services 80,900 80,900 79,153 1,747
Capital outlay 16,500 16,500 1,835 14,665
Total finance 440,831 440,831 407,751 / 33,080
Cable TV:
Current
Personal services 3,116 3,116 1,985 1,131
Supplies 50 50 50
Capital outlay 500 500 467 33
Total cable TV 3,666 3,666 2,452 1,214
Consultants:
Current
Legal 178,080 178,080 155,639'r 22,441
56
CITY OF LINO LAKES, MINNESOTA Statement 11
GENERAL FUND Page 3 of 7
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2006
2006
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative
General government: (continued)
Engineering /planning:
Current
Contractual services $ 245,000 $ 245,000 $ 231,568 $ 13,432
Total engineering /planning 245,000 245,000 231,568 7 13,432
Senior Service
- Current
Personal services 29,173 29,173 30,493 (1,320)
Other services and charges 1,150 1,150 1,820 (670)
Total charter commission 30,323 30,323 32,313 " (1,990)
Charter commission:
Current
Other services and charges 1,875 1,875 2,082 (207)
Total charter commission 1,875 1,875 2,082 / (207)
General government buildings:
Current
Personal services 91,587 91,587 81,444 10,143
Supplies 42,500 42,500 45,804 (3,304)
Other services and charges 302,880 302,880 279,722 23,158
.. Contractual services 29,000 29,000 30,186 (1,186)
Total general government buildings 465,967 465,967 437,156/ 28,811
Total general government
OMR
2,036,300 2,036,300 1,887,972 148,328
57
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2006
Public safety:
Police:
Current
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total poiice
Fire protection:
Current
Contractual services
Building inspection:
Current
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total building inspection
Total public safety
Public works:
Streets:
Current
Personal services
Supplies
Other services and charges
Contractual services
Total streets
Fleet:
Current
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total fleet
Total public works
Statement 11
Page 4 of 7
2006
Original
Budget
Final
Budget
$ 2,427,227 $ 2,427,227
37,841 46,171
82,940 82,940
23,250 23,250
26,826 26,826
2,598,084 2,606,414
411,100
411,100
Variance with
Final Budget
Actual Positive (Negative
$ 2,363,910
50,688
109,690
39,752
33,512
2,597,552'
412,726 d
308,159 308,159 283,829
1,630 1,630 536
27,575 27,575 19,416
2,600 2,600 33,612
1,000 1,000 3,129
340,964 340,964 340,522
3,350,148 3,358,478 3,350,800
492,800
104,500
67,690
28,500
693,490
91,213
158,000
44,880
2,700
6,000
302,793
492,800
104,500
67,690
28,500
693,490
91,213
158,000
44,880
2,700
6,000
302,793
996,283 996,283
58
442,582
90,436
63,037
43,881
639,936
100,479
189,426
51,696
1,969
5,492
349,062
$ 63,317
(4,517)
(26,750)
(16,502)
(6,686)
8,862
(1,626)
24,330
1,094
8,159
(31,012)
(2,129)
442
7,678
50,218
14,064
4,653
(15,381)
53,554
(9,266)
(31,426)
(6,816)
731
508
(46,269)
988,998 ✓ 7,285
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, 2006
2006
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative
Parks and recreation:
Parks:
Current
Personal services $ 455,713 $ 455,713 $ 438,001 $ 17,712
Supplies 42,000 42,000 41,652 348
Other services and charges 36,110 36,110 40,956 (4,846)
- Contractual services 10,950 10,950 12,742 (1,792)
Total parks 544,773 544,773 533,351 11,422
Recreation:
Current
Personal services 225,481 225,481 218,196 7,285
Supplies 2,500 2,500 1,406 1,094
Other services and charges 14,600 14,600 5,379 9,221
Contractual services 800 800 1,147 (347)
Total recreation 243,381 243,381 226,128 17,253
Total parks and recreation 788,154 788,154 759,479/ 28,675
Conservation of natural resources:
-- Forestry:
Current
Personal services . 30,351 30,351 29,863 488
Supplies 1,400 1,400 1,030 370
Other services and charges 1,025 1,025 355 670
Contractual services 4,750 4,750 5,325 (575)
Capital outlay 5,000 5,000 566 4,434
Total forestry 42,526 42,526 37,139 " 5,387
Environmental:
Current
Personal services 61,852 61,852 59,966 1,886
Supplies 700 700 470 230
Other services and charges 9,765 9,765 6,306 3,459
Contractual services 2,300 2,300 432 1,868
Capital outlay 1,750 1,750 1,750
Total environmental 76,367 76,367 68,924 7,443
ONO
Now
59
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CI- IANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2006
2006
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 $ 26,749 $ 26,749 $ 27,886 $ (1,137)
Supplies 50 (50)
Other services and charges 2,200 2,200 746 1,454
Contractual services 16,400 16,400 11,224 5,176
Capital outlay 5,000 5,000 5,000
Total solid waste abatement 50,349 50,349 39,906. 10,443
Total conservation of natural resources
169,242 169,242 145,969 23,273
Community Development:
Community Development:
Current
Personal services 214,573 214,573 206,278 8,295
Supplies 200 200 62 138
Other services and charges 5,980 5,980 8,276 (2,296)
Contractual Services 1,300 1,300 640 660
Capital outlay 600 600 241 359
222,653 222,653 215,497 7,156
Economic Development:
Current
Personal services 83,428 83,428 80,452 2,976
Supplies 200 200 201 (1)
Other services and charges 31,600 31,600 9,551 22,049
Contractual services 121,110 121,110 120,661 449
Total economic development 236,338 236,338 210,865 25,473
Planning and zoning commission:
Current
Personal services 155,653 155,653 149,802 5,851
Supplies 250 250 45 205
Other services and charges 24,845 24,845 51,927 (27,082)
Contractual services 37,250 37,250 55,141 (17,891)
Capital outlay 3,500 3,500 6,615 (3,115)
Total planning and zoning commission 221,498 221,498 263,530 (42,032)
Total community development 680,489 680,489 689,892 / (9,403)
Total Expenditures 8,020,616 8,028,946 7,823,110 205,836
Revenue over Expenditures 529,610 529,610 664,737 135,127
60
OMB
Mow
anio
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CIIANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2006
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Net increase (decrease) in fund balance
Fund Balance - January 1
Fund balance - December 31
Statement 11
Page 7 of 7
2006
Original
Budget
Final
Budget
$ 39,000 $ 39,000
(586,610) (586,610)
(547,610) (547,610)
$ (18,000) $ (18,000)
61
Actual
$
(623,311)
(623,311)
41,426
5,448,808
$ 5,490,234
Variance with
Final Budget
Positive (Negative
$ (39,000)
(36,701)
(75,701)
$ 59,426
CITY OF LINO LAKES, MINNESOTA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2006
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
Senior service $ 30,323 $ 32,313 $ (1,990)
Charter commission 1,875 2,082 (207)
Public safety
Fire protection 411,100 412,726 (1,626)
Public works
Fleet 302,793 349,062 (46,269)
Community development
Planning and zoning commission 221,498 263,530 (42,032)
62
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.
Nom
Capital Project Funds (Continued)
Birch Hodgson Street Improvement Fund — to account for costs to improve the intersection at Birch Street and
Hodgson Road.
Dedicated Parks — to account for the receipts and use of monies collected from dedicated parks fees.
Municipal State Aid — to account for the collection of assessments on municipal state aid projects.
Office Equipment Revolving Fund — to account for the receipt and use of funds for office equipment purchases.
CSAH 14/8 Reconstruction Fund — established to account for the costs associated with the reconstruction of County
and State Highways 14 and 8.
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, 2006
Special Revenue Debt Service
Economic Special Improvement Improvement
Development Program Revenue Bonds of Bonds of
Authority Recreation Subtotal 1998A 1998B
Assets
Cash and investments $ $ 82,117 $ 82,117 $ $
Cash and investments
with escrow agent -
Accrued Interest Receivable - -
Accounts receivable 574 574
Due from other governmental units
Taxes receivable:
Delinquent
Due from County
Delinquent tax increment -
Special assessments receivable:
Delinquent
Deferred
Due from County - -
Prepaid Items 1,813 1,813
Total assets $ $ 84,504 $ 84.504 $ $
Liabilities and Fund Balance
Liabilities:
Interfund payable
Accounts payable 123 123
Salaries Payable - 183 183
Contracts and retainage payable
Due to Other Governments
Advances from Other Funds
Deferred revenue
Total liabilities 306 306
Fund balance (deficit):
Reserved for Prepaid Items 1,813 1,813
Reserved for Debt Retirement -
Reserved for Environmental Improvement
Unreserved:
Designated:
Recreation Programs 82,385 82,385
Capital improvements - -
Undesignated
Total fund balance (deficit) 84,198 84,198
Total liabilities and fund balance $ $ 84,504 $ 84,504 $ $
63
Iwo
New
VIM
Statement 12
Page 1 of 4
Debt Service (continued)
Lease Improvement Public Project Improvement
Certificates Revenue Refunding Refunding Improvement Improvement Refunding
of Bonds Bonds Bonds Bonds of Bonds of Bonds of
Indebtedness of 1998A of 1999A of 1999C 2002A 2002B 2003A
$ 97,835 $ 283,329 $ $ 330,982 $ 434,031 $ 1,159,675 $ 28,603
4,681
1,732
87,202 11,042
346
56,250
5,424
2,045
2,062
746
1,257 - 4,384
110,399 543,741 237,450
2,826 1,131
.. $ 104,248 $ 434,596 $ $ 344,832 $ 545,687 $ 1,706,242 $ 271,568
$
4,681
4,681
99,567
5,424
5,424
429,172
2,062
2,062
342,770
111,656 543,741
111,656 543,741
434,031 1,162,501
241,834
241,834
29,734
99,567 429,172 342,770 434,031 1,162,501 29,734
$ 104,248 $ 434,596 $ $ 344,832 $ 545,687 $ 1,706,242 $ 271,568
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2006
Debt Service (continued)
Improvement and Improvement Tax Utility
Improvement Utility Revenue Refunding Abatement Revenue
Bonds of Bonds of Bonds of Bonds Bonds
2003B 2004A 2005B 2006C 2006D
Assets
Cash and investments $ 97,529 $ 303,496 $ 333,929 $ 70,926 $ 51,608
Cash and investments
with escrow agent
Accrued Interest Receivable - -
Accounts receivable
Due from other governmental units -
Taxes receivable:
Delinquent 326 2,437
Due from County 136 913
Delinquent tax increment
Special assessments receivable: ..-
Delinquent - - 1,566
Deferred 46,610 374,909 381,557 141,334
Due from County - - 540
Prepaid Items
Total assets $ 144,601 $ 678,405 $ 720,942 $ 70,926 $ 192,942
Liabilities and Fund Balance
Liabilities:
Interfund payable $ $ $ $ $
Accounts payable
Salaries Payable
Retainage payable
Due to Other Governments
Advances from Other Funds - -
Deferred revenue 46,936 374,909 385,560 141,334
Total liabilities 46,936 374,909 385,560 141,334
Fund balance (deficit):
Reserved for Prepaid Items - - -
Reserved for Debt Retirement 97,665 303,496 335,382 70,926 51,608
Reserved for Environmental Improvement - - - -
Unreserved:
Designated:
Recreation Programs -
Capital improvements
Undesignated
Total fund balance (deficit) 97,665 303,496 335,382 70,926 51,608
Total liabilities and fund balance $ 144,601 $ 678,405 $ 720,942 $ 70,926 $ 192,942
65
olff at
IRMO
IMF
Statement 12
Page 2 of 4
Debt Service (continued) Capital Projects
Imo CIP
Refunding Debt Capital Capital Closed
Bonds Service Improvement Equipment Bond Street
2006E Subtotal Projects Revolving Fund Fund Reconstruction Sealcoating
INFO
UMW
Ism
lam
$ 30,210 $ 3,222,153 $ 1,111,500 $ 47,018 $ 1,040,230 $ 601,393 $ 222,708
20,339
118,583
346
56,250
14,930
5,572
7,207 -
1,836,000 18,346
4,497 37
80
1,040
50,549 $ 5,265,538 $ 1,111,500 $ 47,018 $ 1,058,613 $ 601,393 $ 223,828
$ $ $ $ - $ $ $
10,147 12,566
1,858,137 18,346 1,120
- 1,858,137 10,147 30,912 1,120
50,549
3,407,401
- 601,393 222,708
- 1,111,500 36,871 1,027,701 - -
50,549 3,407,401 1,111,500 36,871 1,027,701 601,393 222,708
$ 50,549 $ 5,265,538 $ 1,111,500 $ 47,018 $ 1,058,613 $ 601,393 $ 223,828
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2006
Capital Projects (continued)
Surface Town Town
Water SAC Interim Center Center
Management Revolving Construction Project Infrastructure
Assets
Cash and investments $ 236,924 $ 54, 139 $ 294,253 $ 295,700 $ 23,202
Cash and investments
with escrow agent
Accrued Interest Receivable
Accounts receivable
Due from other governmental units 5,000
Taxes receivable:
Delinquent
Due from County
Delinquent tax increment
Special assessments receivable:
Delinquent 3,902
Deferred 423,203
Due from County 207
Prepaid Items -
Total assets $ 669,236 $ 54,139 $ 294,253 $ 295,700 $ 23,202
Liabilities and Fund Balance
Liabilities:
Interfund payable $ - $ - $ $ $
Accounts payable 17,590 749
Salaries Payable
Retainage payable 2,418
Due to Other Governments -
Advances from Other Funds -
Deferred revenue 427,105
Total liabilities 447,113 749
Fund balance (deficit):
Reserved for Prepaid Items
Reserved for Debt Retirement -
Reserved for Environmental Improvement
Unreserved:
Designated:
Recreation Programs - - -
Capital improvements 222,123 294,253 - 23,202
Undesignated - 53,390 - 295,700 -
Total fund balance (deficit) 222,123 53,390 294,253 295,700 23,202
Total liabilities and fund balance $ 669,236 $ 54,139 $ 294,253 $ 295,700 $ 23,202
67
Vom
Imw
New
Statement 12
Page 3 of 4
Capital Projects (Continued)
Tax Tax Tax Tax Tax
Increment Increment Increment Increment Increment Birch Street
Financing Financing Financing Financing Financing Hodgson Road Dedicated
1 -4 1 -5 1 -9 1 -10 1 -11 Improvement Parks
$ 35,470 $ 34,500 $ 120,436 $ 64,179 $ $ 13,559 $ 228,390
1,075
82
508
$ 35,470 $ 34,500 $ 121,593 $ 64,179 $
508 $ 13,559 $ 228,390
$ $ $ $ $ 23,139 $ $
369 816 395 447
6,518
1,822 -
957,112
82 508 -
2,191 898 395 24,094 963,630
35,470 32,309 120,695 - -
- - - 63,784 (23,586) 13,559 (735,240)
35,470 32,309 120,695 63,784 (23,586) 13,559 (735,240)
$ 35,470 $ 34,500 $ 121,593 $ 64,179 $ 508 $ 13,559 $ 228,390
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2006
Capital Projects
Office
Equipment CSAH 14/8 Capital
Municipal Revolving Reconstruction Projects
State Aid Fund Project Subtotal
Assets
Cash and investments $ 133,620 $ 112,381 $ - $ 4,669,602
Cash and investments
with escrow agent
Accrued Interest Receivable
Accounts receivable -
Due from other governmental units 5,000
Taxes receivable:
Delinquent -
Due from County 1,075
Delinquent tax increment - 590
Special assessments receivable:
Delinquent - 3,982
Deferred 442,589
Due from County 244
Prepaid Items -
Total assets
Liabilities and Fund Balance
$ 133,620 $ 112,381 $ - $ 5,123,082
Liabilities:
Interfund payable $ $ $ 24,730 $ 47,869
Accounts payable - - 43,079
Salaries Payable -
Retainage payable 8,936
Due to Other Governments 1,822
Advances from Other Funds 957,112
Deferred revenue - 447,161
Total liabilities - 24,730 1,505,979
Fund balance (deficit):
Reserved for Prepaid Items
Reserved for Debt Retirement
Reserved for Environmental Improvement
Unreserved:
Designated:
Recreation Programs
Capital improvements - 1,552,153
Undesignated 133,620 112,381 (24,730) 2,064,950
Total fund balance (deficit) 133,620 112,381 (24,730) 3,617,103
Total liabilities and fund balance $ 133,620 $ 112,381 $ $ 5,123,082
Statement 12
Page 4 of 4
Permanent
Fund
Foxborough
Environment Total
Fund 2006
$ 105,378 $ 8,079,250
118,583
346
56,824
5,000
14,930
6,647
590
11,189
2,278,589
4,741
1,813
105,378 $ 10,578.502
$ 47,869
43,202
183
8,936
1,822
957,112
2,305,298
3,364,422
1,813
3,407,401
100,000 100,000
82,385
1,552,153
5,378 2,070,328
105,378 7,214,080
$ 105,378 $ 10,578,502
70
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2006
Special Revenue Debt Service
Economic Special Improvement Improvement
Development Program Revenue Bonds of Bonds of
Authority Recreation Subtotal 1998A 1998B
Revenue:
General property taxes $ $ $ $ $ 146,359
Tax increments
Intergovernmental -
Special assessments - 42,328 58,106
Charges for services 185,883 185,883 -
Investment earnings 4,526 4,526 1,029 17,244
Refunds and reimbursements -
Miscellaneous
Total revenue 190,409 190,409 43,357 221,709
Expenditures:
Current:
General government: 201 201
Public works: -
Parks, recreation and forestry 182,690 182,690
Capital outlay:
General government
Public safety
Public works
Parks, recreation and forestry
Debt service:
Principal 290,000 120,000
Interest and fiscal charges - 68,588 33,726
Total expenditures 201 182,690 182,891 358,588 / 153,726'
Revenue over (under) expenditures (201) 7,719 7,518 (315,231) 67,983
Other financing sources (uses):
Transfer in 201 201 333,265
Transfer out - - - (445,582)
Sale of property
Issuance of debt
Premium on bonds issued
Payment made to refunding
bond escrow agent (2,570,000) (1,310,000)
Total other financing
sources (uses) 201 201 (2,236,735) (1,755,582)
Net increase (decrease) in fund balance 7,719 7,719 (2,551,966) (1,687,599)
Fund balance (deficit)
Beginning of year 76,479 76,479 2,551,966 1,687,599
Fund balance (deficit) - December 31 $ $ 84,198 $ 84,198 $ $
71
Statement 13
Page 1 of 4
Debt Service (continued)
Lease Improvement Public Project Improvement
Certificates Revenue Refunding Refunding Improvement Improvement Refunding
.-- of Bonds Bonds Bonds Bonds of Bonds of Bonds of
Indebtedness of 1998A of 1999A of 1999C 2002A 2002B 2003A
IINNE
OMEN
Iwo
Ulm
$ 278,846 $ 329,430 $ $ 120,031 $ $ $
- - - 871
34 38 323 16 13,899 894,537 100,764
6,296 26,371 11,479 18,689 24,876
112,500
285,176 468,339 323 131,526 32,588 919,413 101,635
255,000 210,000 355,000 105,000 100,000 185,000 445,000
21,723 283,911 8,542 23,805 14,745 85,355 45,882
276,723''- 493,91 L 363,542- 128,805, = 114,745 - 270,355' 490,882''
8,453 (25,572) (363,219) 2,721 (82,157) 649,058 (389,247)
3,389,387 359,680 121,000
(478,207) (163) -
(3,345,000)
(433,820) 359,517 121,000
8,453 (459,392) (3,702) 2,721 (82,157) 649,058 (268,247)
91,114 888,564 3,702 340,049 516,188 513,443 297,981
$ 99,567 $ 429,172 $ $ 342,770 $ 434,031 $ 1,162,501 $ 29,734
72
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2006
Debt Service (continued)
Improvement and Improvement Tax Utility
Improvement Utility Revenue Refunding Abatement Revenue
Bonds of Bonds of Bonds of Bonds Bonds
2003B 2004A 2005B 2006C 2006D
Revenue:
General property taxes $ 21,853 $ $ $ $
Tax increments
Intergovernmental -
Spccial assessments 5,868 70,950 45,238
Charges for services - - - -
Investment earnings 3,546 11,785 167 3,104 955
Refunds and reimbursements - -
Miscellaneous
Total revenue 31,267 82,735 167 3,104 46,193
Expenditures:
Current:
General government:
Public works:
Parks, recreation and forestry
Capital outlay:
General government
Public safety
Public works
Parks, recreation and forestry
Debt service:
Principal 25,000 65,000
Interest and fiscal charges 11,450 46,880
Total expenditures 36,450 111,880z
Revenue over (under) expenditures (5,183) (29,145)
Other financing sources (uses):
Transfer in
Transfer out
Sale of property
Issuance of debt
Premium on bonds issued
Payment made to refunding
bond escrow agent
Total other financing
sources (uses)
117,919
117,919'
(117,752)
445,582
512
512 -
2,592
18,044
50,290
46,193
5,415
445,582 68,334 5,415
Net increase (decrease) in fund balance (5,183) (29,145) 327,830 70,926 51,608
Fund balance (deficit)
Beginning of year 102,848 332,641 7,552
Fund balance (deficit) - December 31 $ 97,665 $ 303,496 $ 335,382 $ 70,926 $ 51,608
73
Inm
MIN
Statement 13
Page 2 of 4
Debt Service (continued) Capital Projects
CIP
Refunding Debt Capital Capital Closed
Bonds Service Improvement Equipment Bond Street
2006E Subtotal Projects Revolving Fund Fund Reconstruction Sealcoating
$ $ 896,519 $ - $ $ - $ $
871
1,232,101 5,717 45,360 115
11,383 136,924 46,563 53 44,558 26,530 8,707
- - - 61,180
112,500 130,369 -
11,383 2,378,915 176,932 53 50,275 71,890 70,002
7,653
77,771
211,911
324,444 /
16,140
75,000 v
299,632
- 2,155,000
40,104 803,142
40,104 V 2,958,142 85,424 ✓ 536,35Y 16,140 y 75,000 - 299,632
(28,721) (579,227) 91,508 (536,302) 34,135 (3,110) (229,630)
478,207 5,145,165 239,423 163 300,000
(3,389,387) (4,313,339) (42,813)
2,000 26,750
2,990,000 3,045,705 307,000
450 450 -
(7,225,000)
79,270 (3,347,019) (40,813) 573,173 163 300,000
50,549 (3,926,246) 50,695 36,871 34,298 (3,110) 70,370
7,333,647 1,060,805 993,403 604,503 152,338
$ 50,549 $ 3,407,401 $ 1,111,500 $ 36,871 $ 1,027,701 $ 601,393 $ 222,708
74
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2006
Revenue:
General property taxes
Tax increments
Intergovernmental
Special assessments
Charges for services
Investment earnings
Refunds and reimbursements
Miscellaneous
Total revenue
Capital Projects (Continued)
Surface Town Town
Water SAC Interim Center Center
Management Revolving Construction Project Infrastructure
173,875
9,357
15,657
12,633
12,696
996
183,232 15,657 12,633 12,696 996
Expenditures:
Current:
General government: 334,244
Public works: 210,641
Parks, recreation and forestry
Capital outlay:
General government
Public safety
Public works 126
Parks, recreation and forestry
Debt service:
Principal
Interest and fiscal charges
Total expenditures 210,767/ 334,2441
Revenue over (under) expenditures (27,535) (318,587)
Other financing sources (uses):
Transfer in
Transfer out
Sale of property
Issuance of debt
Premium on bonds issued
Payment made to refunding
bond escrow agent
Total other financing
sources (uses)
12,633
12,696 996
Net increase (decrease) in fund balance (27,535) (318,587) 12,633 12,696 996
Fund balance (deficit)
Beginning of year 249,658 371,977 281,620 283,004 22,206
Fund balance (deficit) - December 31 $ 222,123 $ 53,390 $ 294,253 $ 295,700 $ 23,202
75
Statement 13
Page 3 of 4
Capital Projects (Continued)
Tax Increment Tax Increment Tax Increment Tax Increment Tax Increment Birch Street
Financing Financing Financing Financing Financing Hodgson Road Dedicated
1 -4 1 -5 1 -9 1 -10 1 -11 Improvement Parks
- $ - $ - $ -
39,120 210,050 206,483
MIN
1,524
1,487 4,192
1,689
867
50,000
287
12,553
209,060
1,524 40,607 214,242 208,172 867 50,287 221,613
26
lom
37,565 176,502 165,099 476
2V 37,565' 176,502, 165,099' 4761
134,558
117,425
251,983
1,498 3,042 37,740 43,073 391 50,287 (30,370)
1,498 3,042 37,740 43,073
391
30,000
30,000
50,287 (370)
33,972 29,267 82,955 20,711 (23,977) (36,728) (734,870)
$ 35,470 $ 32,309 $ 120,695 $ 63,784 $ (23,586) $ 13,559 $ (735,240)
lamm
76
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2006
Capital Projects
Office
Equipment CSAH 14/8 Capital
Municipal Revolving Reconstruction Projects
State Aid Fund Project Subtotal
Revenue:
General property taxes $ $ $ $ -
Tax increments 456,520
Intergovernmental 247,588 297,588
Special assessments 225,067
Charges for services -
Investment earnings 2,172 2,302 203,956
Refunds and reimbursements - 61,180
Miscellaneous 339,429
Total revenue 249,760 2,302 1,583,740
Expenditures:
Current:
General government: 528 - 738,207
Public works: 66,787 9,818 ✓ 661,878
Parks, recreation and forestry - - 134,558
Capital outlay:
General government 39,074 116,845
Public safety - 211,911
Public works 324,570
Parks, recreation and forestry 117,451
Debt service:
Principal
Interest and fiscal charges - -
Total expenditures 66,787 " 39,602 f 9,818 -/ 2,305,420
Revenue over (under) expenditures 182,973 (37,300) (9,818) (721,680)
Other financing sources (uses):
Transfer in 96,500 666,086
Transfer out - - (42,813)
Sale of property 68 28,818
Issuance of debt 307,000
Premium on bonds issued
Payment made to refunding
bond escrow agent
Total other financing
sources (uses) 96,568 959,091
Net increase (decrease) in fund balance 182,973 59,268 (9,818) 237,411
Fund balance (deficit)
Beginning of year (49,353) 53,113 (14,912) 3,379,692
Fund balance (deficit) - December 31 $ 133,620 $ 1 12,381 $ (24,730) $ 3,617,103
Statement 13
Page 4 of 4
Permanent
Fund
Foxborough
Environment Totals
Fund 2006
$ 896,519
456,520
298,459
1,457,168
185,883
4,525 349,931
61,180
451,929
4,525 4,157,589
738,408
661,878
317,248
116,845
211,911
324,570
117,451
2,155,000
803,142
5,446,453
4,525 (1,288,864)
5,811,452
(4,356,152)
28,818
3,352,705
450
(7,225,000)
(2,387,727)
4,525 (3,676,591)
100,853 10,890,671
$ 105,378 $ 7,214,080
78
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, 2006
Statement 14
2006
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative)
Revenue:
Charges for services:
Recreation Fees $ 185,800 $ 185,800 $ 185,883 $ 83
Investment earnings 4,526 4,526
Total revenue 185,800 185,800 190,409 4,609
Expenditures:
Current:
Personal services 103,510 103,510 98,013 5,497
Supplies 41,080 41,080 81,292 (40,212)
Other services and charges 2,300 2,300 785 1,515
Contractual services 12,950 12,950 2,600 10,350
Capital outlay 4,000 4,000 4,000
Total expenditures 163,840 163,840 182,690 (18,850)
Net increase (decrease) in fund balance $ 21,960 $ 21,960 7,719 $ (14,241)
Fund balance - January 1 76,479
Fund balance - December 31
79
$ 84,198
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, 2006
Statement 15
Balance Balance
January 1, December 31,
2006 Additions Deductions 2006
Assets
Cash and investments $ 1,380,493 $ 2,395,592 $ 2,672,622 $ 1,103,463
Deposits receivable 10,520 - - 10,520
Total assets $ 1,391,013 $ 2,395,592 $ 2,672,622 $ 1,113,983
— Liabilities
Accounts payable
Deposits payable
— Total Liabilities
Ow
Rims
Mom
$ 88,580 $ 1,102,456 $ 1,173,823 $ 17,213
1,302,433 1,293,136 1,498,799 1,096,770
$ 1,391,013 $ 2,395,592 $ 2,672,622 $ 1,113,983
80
SUPPLEMENTARY FINANCIAL INFORMATION
CITY OF LINO LAKES, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2006
General Obligation Bonds:
2003A Equipment Certificates
200313 Equipment Certificates
2004A Equipment Certificates
2005A Equipment Certificates
2006A Equipment Certificates
Civic Complex Lease Revenue Bonds, Series 1998A
Public Project Revenue Refunding Bonds, Series 1999C
G.O. Tax Abatement Bonds, Series 2006C
G.O. Utility Revenue Bonds, Series 2006D
G.U. ('IP Refunding Bonds, Series 2006E
Total General Obligation Bonds
Special Assessment Bonds:
G. O. Improvement Bonds of 1998A
G. O. Improvement Bonds of 1998B
G. O. Improvement Refunding Bonds of 1999A
G. O. Improvement Bonds of 2002A
G. O. Improvement Bonds of 2002B
G. O. Improvement Refunding Bonds of 2003A
G. O. Improvement Bonds of 2003B
G. O. Improvement and Utility Bonds of 2004A
G. O. Improvement Bonds of 2005A
G. O. Improvement Refunding Bonds of 20058
Total General Improvement Bonds with special assessments pledged
Interest
Rates
Dated
Final
Maturity
Date
6.00% 2/1/03 12/31/06
4.00% 3/31/03 12/31/06
4.00% 2/1/04 12/31/06
4.00% 2/1/05 12/31/08
4.00% 2/1/06 12/31/09
4.20 % -5.35% 8/1/98 2/1/19
4.75 % -5.10% 9/1/99 2/1/10
4.00 % -4.30% 8/15/06 2/1/23
4.00 % -4.15% 8/15/06 2/1/17
4.00% 11/1/06 2/1/18
4.50 % -4.90% 8/1/98 2/1/15
4.50 % -4.90% 8/1/98 2/1/15
4.25 % -4.70% 9/1/99 2/1/06
3.00 % -4.10% 8/1/02 2/1/13
3.20 % -5.55% 8/1/02 2/1/13
2.00 % -4.25% 12/1/03 2/1/19
3.20 % -5.60% 12/1/03 2/1/14
1.90 % -4.45% 11/15/04 2/1/20
4.35 % -5.15% 11/1/05 2/1/21
3.75 % -5.00% 11/1/05 2/1/15
Revenue Bonds:
G. O. Water Revenue Bonds of 1996B 4.10 % -5.70% 10/1/96 2/1/12
G. O. Water Revenue Refunding Bonds of 1999B 4.25 % -4.90% 9/1/99 2/1/08
G. O. Water Utility Revenue Refunding Bonds of 2006F 3.55 % - 3.625% 11/1/06 2/1/12
(fowl Revenue Bonds
Total City indebtedness
81
Exhibit 1
Prior Years Principal Interest
Original Payable 2006 Payable Due Due
Issue Payments 1/1/06 Issued Payments 12/31/06 In 2007 In 2007
130,000 $ 90,000 $ 40,000 $ - $ 40,000 $
200,000 115,000 85,000 - 85,000 - - -
274,000 81,000 193,000 95,000 98,000 98,000 3,920
107,000 107,000 35,000 72,000 35,000 2,880
- - - 307,000 - 307,000 90,000 26,479
5,350,000 930,000 4,420,000 3,555,000 865,000 230,000 26,046
980,000 490,000 490,000 J - 105,000 385,000V 100,000 16,640
2,460,000 2,460,000 99,398
- 570,000 / - 570,000 22,223
2,990,000 / - 2,990,000'- - 89,700
7,041,000 1,706,000 5,335,000 6,327,000 3,915,000 7,747,000 553,000 287,286
4,310,000 1,450,000 2,860,000 2,860,000
2,000,000 570,000 1,430,000 1,430,000
1,725,000 1,370,000 355,000.' - 355,000 - -
645,000 190,000 455,000 100,000 355,000 110,000 10,883
.. 2,110,000 345,000 1 ,765,000 185,000 1,580,000 1 90,000 76,568
2,090,000 435,000 1,655,000 7 Q4 445,000 1,210,000 ", r 440,000 34,000
250,000 - 250,000 - 25,000 225,000 25,000 10,584
1,330,000 1,330,000 - 65,000 1,265,000 75,000 44,499
_
5,550,000 5,550,000 5,550,000 195,000 272,576
3,755,000 3,755,000 - 3,755,000v 385,000 149,469
23,765,000 4,360,000 19,405,000 5,465,000 13,940,000 1,420,000 598,579
3,320,000 1,220,000 2,100,000 190,000 1,910,000 1,910,000 52,440
680,000 355,000 325,000 - 105,000 220,000✓ 105,000 8,155
1,740,000/ - 1,740,000 ✓ 46,842
4,000,000 1,575,000 2,425,000 1,740,000 295,000 3,870,000 2,015,000 107,437
$ 34,806,000 $ 7,641,000 $ 27,165,000 $ 8,067,000 $ 9,675,000 $ 25,557,000 $ 3,988,000 $ 993,302
low
82
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2006
Public
Lease Project G. 0.
Year of Equipment Equipment Equipment Revenue Refunding Improvement
Levy/ Certificates Certificates Certificates Bonds Bonds Bonds
Collection of 2004A of 2005A of 2006A of 1998A 1999C of 2002A
2006/2007 $ 107,016 $ 39,774 $ 122,303 $ 177,056 $ 119,952 $ 5,259
2007/2008 40,404 122,603 191,213 109,557 7,467
2008/2009 120,698 126,788 104,570 6,496
2009/2010 - - 5,446
2010/2011 9,645
2011/2012 - - 8,385
2012/2013
2013/2014
2014/2015
2015/2016
2016/2017
2017/2018
2018/2019
2019/2020
2020/2021
2021/2022
$ 107,016 $ 80,178 $ 365,604 $ 495,057 $ 334,079 $ 42,698
83
MEM
II Wow
Raw
Exhibit 2
G. O.
Improvement
Bonds
of 2003B
G.O.
Improvement
and Utility
Bonds
of 2004A
G. O.
Improvement
Bonds
of 2005A
$ 22,828 $ 128,292 $
21,844 126,520
20,741 124,472
19,534 127,439
23,524 124,793
21,917 127,187
20,248 129,268
23,781 125,772
122,133
128,853
124,548
125,388
125,898
126,123
570,502
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.
Tax
Abatement
Bonds
2006C
$ 585,113 $
574,022
557,484
546,197
524,213
512,925
490,613
463,050
86,656
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
G. O.
CIP
Refunding
Bonds
2006E Total
$ 125,580 $ 2,090,331
125,580 1,996,098
209,580 1,948,504
442,470 1,850,261
445,410 1,892,463
468,720 1,940,867
459,060 1,914,309
443,940 1,878,121
449,820 1,403,658
460,110 1,439,600
464,100 1,445,243
996,723
1,014,277
1,029,078
337,517
350,447
$ 174,417 $ 1,766,686 $ 7,987,338 $ 4,253,617 $ 3,826,437 $ 4,094,370 $23,527,497
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS
December 31, 2006
Bonds payable
Future interest payable
Totals
Payments to maturity:
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Equipment
Certificates
2004A
Equipment
Certificates
2005A
Equipment
Certificates
2006A
G. O.
Improvement
Bonds
of 2002A
G. O.
Improvement
Bonds
of 2002B
G. O.
Improvement
Refunding
Bonds
2003A
$ 98,000 $ 72,000 $ 307,000 $ 355,000 $ 1,580,000 $ 1,210,000
3,920
4,360
41,194
32,334
311,316
229,384
$ 101,920 $ 76,360 $ 348,194 $ 387,334 $ 1,891,316 $ 1,439,384
$ 101,920 $ 37,880
38,480
$ 116,479
116,765
114,950
$ 120,883 $ 266,568 $ 474,000
117,253 267,688 82,813
29,893 272,613 81,301
28,930 271,388 79,611
27,930 269,310 82,638
31,830 271,395 80,537
30,615 272,354 78,438
81,088
78,488
80,788
77,988
79,994
81,700
$ 101,920 $ 76,360 $ 348,194 $ 387,334 $ 1,891,316 $ 1,439,384
85
MEM
MEI
INNIp
Mom
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. G.O. G.O.
Tax Utility CIP
Abatement Revenue Refunding
Bonds Bonds Bonds
2006C 2006D 2006E
Civic
Complex
Revenue
Bonds
of 1998A
$ 225,000 $ 1,265,000 $ 5,550,000 $ 3,755,000 $ 2,460,000 $ 570,000 $ 2,990,000 $ 865,000
50,077 368,469 2,390,409
759,408 1,252,810 146,286 939,300 77,093
$ 275,077 $ 1,633,469 $ 7,940,409 $ 4,514,408 $ 3,712,810 $ 716,286 $ 3,929,300 $ 942,093
$ 35,584
34,590
33,490
32,315
35,950
34,390
32,778
35,980
$ 119,500
117,437
115,187
112,900
120,420
117,700
114,810
116,702
118,182
114,382
115,482
116,382
117,013
1 17,372
$ 467,577 $ 534,469
537,286 549,469
534,111 538,813
534,486 523,063
534,111 512,219
532,986 491,375
531,111 477,875
533,361 456,625
529,736 430,500
530,236
534,611
532,861
534,633
534,784
538,519
$ 99,398
103,420
103,420
103,420
132,820
185,520
221,320
231,020
240,043
248,381
260,858
267,464
278,327
293,233
302,183
315,103
326,880
$ 22,223 $ 89,700
72,122 119,600
70,122 119,600
68,122 198,000
66,122 415,300
69,022 417,800
71,722 439,300
69,292 430,000
66,832 415,600
69,254 420,800
71,453 430,100
433,500
$ 250,968
281,125
289,250
120,750
$ 275,077 $ 1,633,469 $ 7,940,409 $ 4,514,408 $ 3,712,810 $ 716,286 $ 3,929,300 $ 942,093
86
CITY OF' LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS (CONTINUED) Exhibit 3 (Continued)
December 31, 2006
G.O. Water
Public G. O. G. O. Water Utility
Project Water Revenue Revenue
Revenue Revenue Refunding Refunding
Bonds Bonds Bonds Bonds
of 1999C of 1996B of 1999B of 2006F Totals
Bonds payable $ 385,000 $ 1,910,000 $ 220,000 $ 1,740,000 $ 25,557,000
Future interest payable 37,689 362,716 10,971 218,698 7,236,434
Totals $ 422,689 $ 2,272,716 $ 230,971 $ 1,958,698 $ 32,793,434
Payments to maturity:
2007 $ 116,640 $ 299,680 $ 113,154 $ 46,842 $ 3,313,465
2008 111,790 298,915 117,817 268,729 3,235,299
2009 101,964 419,034 408,612 3,232,360
2010 92,295 419,682 410,472 2,995,434
2011 418,864 411,702 3,027,386
2012 416,541 - 412,341 3,061,437
2013 2,270,323
•. 2014 1,954,068
2015 1,879,381
2016 1,463,841
2017 - 1,490,492
2018 1,430,201
2019 - 1,011,673
2020 - 945,389
2021 840,702
2022 315,103
2023 326,880
Iwo
$ 422,689 $ 2,272,716 $ 230,971 $ 1,958,698 $ 32,793,434
CITY OF LINO LAKES, MINNESOTA
INSURANCE IN FORCE
December 31, 2006
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) 21,460,722
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
88
NNE
CITY OF LINO LAKES, MINNESOTA
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Exhibit 5
Tax Capacity Tax Capacity
Values Values
2005/2006 2004/2005
Taxable valuations:
Total $ 18,850,702 $ 16,620,861
Fiscal disparities:
Distribution 1,797,349 1,749,152
Contribution (1,010,480) (881,474)
Less: Captured Tax Increment Value (389,386) (274,702)
$ 19,248,185 $ 17,213,837
Tax Tax
Certified Capacity Certified Capacity
Levy Rate Levy Rate
Taxes Levied:
Revenue $ 7,042,626 36 $ 6,342,211 37
Bond and Interest 934,281 5.354 927,091 5.385
Totals $ 7,976,907 41.398 $ 7,269,302 42.223
The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution
89
III.
STATISTICAL
SECTION
CITY OF LINO LAKES, MINNESOTA
NET ASSETS BY COMPONENT,
— LAST FOUR FISCAL YEARS
(accrual basis of accounting)
IMMO
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Unrestricted
— Total business -type activities net assets
Primary Government
Invested in capital assets, net of related debt
—
Restricted
Unrestricted
— Total primary government net assets
IMIIM
aim
Rim
MINN
Table 1
Fiscal Year
2003
2004
$ 25,993,905 $ 28,807,262
3,568,555 3,045,052
15, 668, 226 16, 249, 541
2005
$ 25,460,528
12,050,484
13,577,071
$ 45,230,686 $ 48,101,855 $ 51,088,083
$ 25,537,383
3,778,936
$ 26,713,498 $ 28,342,832
4,744,875 5,572,338
$ 29,316,319 $ 31,458,373 $ 33,915,170
$ 51,531,288
3,568,555
19,447,162
$ 55,520,760
3,045,052
20,994,416
$ 53,803,360
12,050,484
19,149,409
$ 74,547,005 $ 79,560,228 $ 85,003,253
Note: The City began to report accrual information when it implemented GASB 34 in fiscal year 2003.
90
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
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET ASSETS,
LAST FOUR 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 governmental 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
Table 2
Fiscal Year
2003
$ 6,092,587
2,648,944
1,162,412
932,113
111,946
859,110
815,681
$ 12,622,793
968,458
1,046,170
2,014,628
$ 14,637,421
$ 102,520
964,034
493,312
250,816
5,369
28,210
633,691
4,536,567
$ 7,014,519
1,064,326
1,216,589
2,719,081
4,999,996
$ 12,014,515
$ (5,608,274)
2,985,368
$ (2,622,906)
91
2004 2005
$ 2,524,387
2,799,294
7,254,708
1,196,096
116,869
420,874
748,832
$ 15,061,060
914,039
1,130,994
2,045,033
$ 17,106,093
$ 122,861
1,049,858
454,191
242,857
11,763
28,952
677,079
7,515,238
$ 10,102,799
979,075
1,280,652
1,589,419
3,849,146
$ 13,951,945
$ (4,958,261)
1,804,113
$ (3,154,148)
$ 2,941,279
3,091,174
9,187,436
799,335
150,092
383,211
797,341
$ 17,349,868
876,592
1,217,825
2,094,417
$ 19,444,285
$ 111,480
998,210
434,087
196,951
4,873
26,985
761,924
10,128,024
$ 12,662,534
1,031,175
1,361,759
1,733,775
4,126,709
$ 16,789,243
$ (4,687,334)
2,032,292
$ (2,655,042)
2006
$ 2,886,825
3,516,376
3,871,968
1,162,458
156,592
691,880
926,021
$ 13,212,120
976,575
1,228,123
2,204,698
15,416,818
$ 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
$ (5,035,165)
1,897,807
$ (3,137,358)
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET ASSETS,
LAST FOUR FISCAL YEARS (Continued)
(accrual basis of accounting)
General Revenues and Other Changes in Net Ass
Governmental activities:
Property taxes
Unrestricted grants and contributions
Unrestricted investment earnings
Gain on sale of capital assets
Miscellaneous
Transfers
Total governmental activities
Business -type activities:
— Unrestricted investment earnings
Transfers
Total business -type activities
Total primary government
Change in Net Assets
Governmental activities
— Business -type activities
Total primary government net expense
MO
NM
MO
Mom
Wm
Isms
Fiscal Year
2003
ets
$ 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 2005
2006
$ 6,630,279 $ 7,383,415 $ 8,269,944
221,302
1,280,957
- 160,955
(303,108) (304,195)
$ 7,829,430 $ 7,673,562
433,387 713,794
33,217
(299,725)
$ 8,717,230
34,833 120,310
303,108 304,195
337,941 424,505
$ 8,167,371 $ 8,098,067
$ 2,871,169
2,142,054
$ 5,013,223
253,787
299,725
553,512
$ 9,270,742
$ 2,986,228 $ 3,682,065
2,456,797 2,451,319
$ 5,443,025 $ 6,133,384
Note: The City began to report accrual information when it implemented GASB 34 in fiscal year 2003.
92
CITY OF LINO LAKES, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
1997 1998 1999 2000
General Fund
Reserved $ 99,820 $ 98,453 $ 115,359 $ 105,052
Unreserved 2,958,092 3,312,879 3,319,115 3,436,544
Total general fund $ 3,057,912 $ 3,411,332 $ 3,434,474 $ 3,541,596
All other Governmental Funds
Reserved reported in:
Special Revenue Funds $ 323 $ 264 $ - $ 1,017
Capital Projects Funds 991,824 990,455 989,506 1,572,422
Debt Service Funds 1,009,512 1,989,218 3,824,337 4,101,453
Permanent Funds
Unreserved reported in:
Special Revenue Funds 37,800 36,956 33,961 49,232
Capital Projects Funds 9,941,448 12,099,048 4,340,900 4,990,610
Debt Service Funds (6,234) (28,568)
Permanent Funds - -
Total all other governmental funds $ 11,980,907 $ 15,115,941 $ 9,182,470 $ 10,686,166
Total all funds $ 15,038,819 $ 18,527,273 $ 12,616,944 $ 14,227,762
93
Table 3
Fiscal Year
2001
2002
2003 2004
2005
2006
$ 105,969 $ 120,727 $ 133,921 $ 142,492 $ 148,652 $ 153,009
3,818,700 4,232,291 4,775,969 5,067,973 5,300,156 5,337,225
_ $ 3,924,669 $ 4,353,018 $ 4,909,890 $ 5,210,465 $ 5,448,808 $ 5,490,234
MIN
$ 1,551 $ 2,430 $ 1,759 $ 1,718 $ 1,763
1,843,423 1,946,617 1,946,618 957,112 957,112
1,768,402 1,818,859 2,482,184 2,556,300 7,371,359
- 100,000
41,195 25,200 32,704
6,242,862 6,317,650 5,406, 014
(41,953) (612,943) 675,409
57,616
6,241,408
452,972
74,716
7,348,375
853
$ 9,855,480 $ 9,497,813 $ 10,544,688 $ 10,267,126 $ 15,854,178
$ 13,780,149 $ 13,850,831 $ 15,454,578 $ 15,477,591 $ 21,302,986
94
$ 1,813
957,112
3,992,952
100,000
82,385
5,525,508
5,378
$ 10, 665,148
$ 16,155,382
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
1997
$ 3,438,104
566,561
1,255,395
2,870,510
598,920
99,390
712,851
748,406
10,290,137
2,415,733
1,661,090
764,592
581,830
961,325
408,000
473,398
2,983,749
10,249,717
40,420
1,171,020
272,000
(272,000)
1,171,020
$ 1,211,440
Debt service as a percentage of
noncapital expenditures 14.0%
95
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
2,512,284 2,644,205 3,145,791
1,778,863 1,951,820 2,126,696
673,156 627,925 838,789
663,566 755,215 828,852
561,160 218,981 106,543
623,360 1,576,616 617,345
740,000 1,190,734 1,448,570
527,782 1,076,079 1,041,882
12,468,230 8,775,128 725,663
20, 548,401 18,816, 703 10,880,131
(8,398,248)
11,806,000
2,312,920
(2,150,161)
11,968,759
$ 3,570,511
17.0%
(8,500,404) 1,485,877
3,600,539
(961,098)
948,297
(997,663)
2,590,075
325,450
526,843
(847,352)
4,941
$ (5,910,329) $ 1,490,818
26.8% 26.1%
Table 4
Fiscal Year
2001
$ 5,856,349
1,016,456
2,101,953
1,783,237
684,264
101,559
571,248
699,020
12,814,086
INNIm
2002
$ 6,243,200
913,498
858,816
2,050,015
611,414
100,393
447,182
710,513
11,935,031
2003
$ 6,687,516
766,524
2,011,285
2,812,386
658,370
97,223
194,049
677,823
13,905,176
2004
$ 6,523,938
867,909
2,419,531
1,587,510
639,565
106,053
221,303
782,179
13,147,988
2005
$ 7,230,287
812,172
1,808,111
1,769,821
601,548
100,980
433,385
948,009
13,704,313
2006
$ 8,103,263
581,582
1,818,519
2,901,100
687,551
101,518
713,795
716,692
15,624,020
2,652,762 2,893,683 5,808,015 2,261,908 2,701,731 2,614,303
- 2,212,932 2,463,004 2,609,171 2,798,013 3,099,032 3,314,159
1,134,874 1,245,451 1,770,649 5,126,578 7,071,322 7,755,727
914,432 952,039 969,597 954,945 1,111,301 1,076,727
_ 139,599 111,880 114,580 115,631 140,334 143,653
683,036
992,339 1,057,099 622,218 515,287 464,553 835,770
- 2,097,050 2,851,332 1,684,450 1,960,000 2,016,000 2,155,000
960,281 1,030,395 865,638 798,405 838,950 1,011,157
501,810 1,833,592 229,321
,_ 11,606,079 14,438,475 14,673,639 14,530,767 17,443,223 19,589,532
1,208,007
332,030
(1,680,000)
412,239
(719,889)
(1,655,620)
$ (447,613)
30.2%
(2,503,444) (768,463) (1,382,779)
2,878,201
851,472
(1,155,547)
2,574,126
2,673,565
1,120,223
(1,421,578)
2,372,210
$ 70,682 $ 1,603,747
33.6%
18.4%
1,280,957
1,604,000
(6,057)
(1,170,000)
5,283,306
(5,586,414)
1,405,792
(3,738,910)
280,269
9,412,000
176,231
2,651,469
(2,955,664)
9,564,305
$ 23,013 $ 5,825,395
19.7%
16.8%
(3,965,512)
28,818
6,327,000
450
(13,635)
(7,225,000)
5,811,452
(6,111,177)
(1,182,092)
$ (5,147,604)
16.9%
CITY OF LINO LAKES, MINNESOTA
ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY,
LAST TEN FISCAL YEARS
Payable
Year
Residential
Property
Commercial/
Industrial
Property
Personal
Property
1997 $ 7,652,684 $ 692,288 $
1998 8,272,475 972,430
1999 8,560,188 1,089,469
2000 9,428,655 1,574,470
2001 10,763,728 1,872,003
2002 9,179,811 1,202,560
2003 10,649,345 1,487,554
2004 12,252,347 1,982,146
2005 14,055,076 2,290,829
2006 15,825,619 2,740,583
Source: Anoka County, Minnesota Assessors' Office
462,282
434,234
393,365
395,637
393,728
246,594
251,016
259,194
274,956
271,665
Total Taxable
Assessed
Value
$ 8,807,254
9,679,139
10, 043, 022
11,398,762
13,029,459
10,628,965
12,387,915
14,493,687
16,620,861
18,837,867
Table 5
Total Direct
Tax Rate
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.
97
$ 31.17
30.44
36.04
35.96
35.90
53.08
47.60
42.29
42.22
41.40
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
General Centennial Total Direct
Obligation School Other and
- Fiscal Debt Total District ISD Anoka Taxing Total Overlapping
Year Basic Rate Service Direct # 12 County Districts Overlapping Tax Rate
1997 28.171 2.996 31.167 66.000 30.542 5.197 101.739 132.906
- 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
-
IMms
MEM
WIPP
Source: Anoka County Property Records and Tax Division
Notes:
The majority of Lino Lakes is served by Independent School District No. 12.
Rates for debt service are based on each year's requirements.
98
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS,
CURRENT YEAR AND NINE YEARS AGO
Taxpayer
2006 1997
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 $ 263,094 1
Lino Lakes Realty LLC 240,710 2
Kohl's Department Store 162,956 3
Xcel Energy 133,655 4
Moline Concrete Products 112,313 5
Taylor Corporation 110,926 6
Gargaro Properties LLC 85,878 7
Marmon /Keystone Corporation 80,960 8
Lino Lakes Business Center 78,802 9
F &G Incorporated 76,746 10
Minnesota Pipeline Company
Minnegasco, Inc.
Anoka Electric Cooperative
Custom Manufacturing
Nol -Tec Systems
Lino Lakes Investments
BBJ, LLC
United Power Association
1.37 % $
1.25
0.85
0.69 254,647 1 2.51
0.58 51,254 5 0.50
0.58
0.45
0.42
0.41
0.40
6,333 2
62,298 3
56,175 4
38,521 6
35,526 7
35,200 8
27,610 9
27,246 10
0.06
0.61
0.55
0.38
0.35
0.35
0.27
0.27
Total $ 1,346,040 6.99 % $ 594,810 5.85 %
Source: Anoka County
NINO
99
CITY OF LINO LAKES, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS.
LAST TEN FISCAL YEARS
Fiscal
Year
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Taxes Levied for the Fiscal Year
Operating Debt
Tax Levy Tax Levy
$ 3,027,448
3,274,364
3,255,587
3,611,498
4,105,048
4,885,509
5,180,932
5,623,542
6,342,211
7,042,626
$ 321,952
315,253
860,725
960,390
993,561
1,016,649
943,689
927,078
927,091
934,281
Total Tax
Levy
$ 3,349,400
3,589,617
4,116,312
4,571,888
5,098,609
5,902,158
6,124,621
6,550,620
7,269,302
7,976,907
Collected within the
Fiscal Year of Levy
Amount
$ 3,316,426
3,564,611
4,085,625
4,534,998
5,047,912
5,847,692
6,062,273
6,145,419
6,881,838
7,594,019
Percentage
of
Levy
99.0%
99.3%
99.3%
99.2%
99.0%
99.1%
99.0%
93.8%
94.7%
95.2%
Notes:
Current year levies and collections include Sate levy related credits (HACA and Market
Value Credit).
Does not include tax increment levies and collections.
100
Collections
in Subsequent
Years
$ 31,634
27,552
21,163
42,227
50,389
56,678
85,631
46,536
— 45,869
Total Collections to Date
Percentage
of
Amount Levy
$ 3,348,060
3,592,163
4,106,788
4,577,225
5,098,301
5,904,370
6,147,904
6,191, 955
6,927,707
7,594,019
Outstanding
Delinquent
Taxes
100.0% $ 1,340
100.1% (2,546)
99.8% 9,524
100.1% (5,337)
100.0% 308
100.0% (2,212)
100.4% (23,283)
94.5% 358,665
95.3% 341,595
95.2% 382,888
Table 8
Percentage
of Levy
Outstanding
0.0%
- 0.1%
0.2%
- 0.1%
0.0%
0.0%
- 0.4%
5.5%
4.7%
4.8%
CITY OF LINO LAKES, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Fiscal
Year
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Governmental Activities
General
Obligation
Bonds
$ 1,415,000
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
Special
Assessments
Payable
Other
Long -Term
Debt
$ 7,455,000 $
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
946,020
1,459,352
1,209,352
959,352
Business -Type
Activities
General
Obligation
Revenue
Bonds
$ 4,215,000
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
Total
Primary
Government
$ 13,085,000
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
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 2006 from the State of Minnesota Jobs Training
Research Statistics Department.
102
Table 9
Percentage
of Personal Per
Income Capita
3.55 % $ 899
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
(1) (1)
103
Mos
IMMEI
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
As of December 31, 2006
Overlapping:
Anoka County
ISD 12
ISD 624
ISD 831
SISD 916
Metropolitan Council
Total Overlapping
City of Lino Lakes Direct Debt
Table 10
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable Debt
$ 101,865,000 6.5% $ 6,623,852
112,110,000 49.4% 55,368,520
72,235,000 3.6% 2,573,232
74,765,000 7.6% 5,645,962
12,320,000 2.7% 329,826
185,560,000 0.6% 1,196,482
71,737,874
$ 4,717,000 100% 4,717,000
Total Direct and Overlapping Debt: $ 76,454,874
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 Tong -term debt, the entire debt
burden borne by the residents and businesses should be taken into account. However, this does not
imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each
overlapping government.
Does not include general obligation debt supported by special assessments, utility revenues,
tax or aid anticipation certificates, State -aid road or revenue debt.
Determined by ratio of net tax capacity (after fiscal disparities and tax increment adjustment)
of property subject to taxation in overlapping unit to valuation of property subject to taxation in City.
104
CITY OF LINO LAKES, MINNESOTA
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
1997 1998 1999 2000
Debt limit $ 11,053,924 $ 12,548,476 $ 13,754,748 $ 15,507,964
Total net debt applicable to limit 299,297 5,853,841 5,894,844 5,976,450
Legal debt margin $ 10,754,627 $ 6,694,635 $ 7,859,904 $ 9,531,514
Total net debt applicable to the limit
as a percentage of debt limit 2.71 % 46.65% 42.86% 38.54%
105
IIIM
Table 11
Legal Debt Margin Calculation for Fiscal Year 2006
Market value $ 1,734,317,800
Debt limit (2% of market value) 34,686,356
Debt applicable to limit 4,332,000
Legal debt margin $ 30,354,356
Fiscal Year
2001 2002 2003 2004 2005 2006
— $ 18,073,714 $ 20,688,642 $ 25,024,436 $ 28,616,070 $ 30,698,674 $ 34,686,356
5,836,430 5,479,450 5,350,000 5,169,000 4,845,000 4,332,000
NM
VIM
IIIMM
II NM
$ 12,237,284 $ 15,209,192 $ 19,674,436 $ 23,447,070 $ 25,853,674 $ 30,354,356
32.29% 26.49% 21.38% 18.06% 15.78% 12.49%
106
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
1997 14,560 $ 368,426 $ 25,304 6,190 2.5%
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 20,290 N/A N/A 6,986 4.1
Source:
(1) = Estimates from Metropolitan Council, except for 2000 which is per the U.S. Census.
(2) = Information from State Demographers Office (Bureau of Economic Analysis Report).
(3) = Information from Independent School District No. 12.
(4) = Information from the State of Minnesota Jobs Training Research Statistics Department.
Note: Information not available is marked N/A
107
NMI
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL EMPLOYERS,
CURRENT YEAR AND NINE YEARS AGO
Employer
State of Minnesota Corrections
Target Corporation
AdGraphics
Synovis Interventional Systems
Summit Fire Protection
Molin Concrete Products
Anoka County Juvenile Center
Kohl's Department Store
Nol -Tech Systems, Inc.
Custom Manufacturing
Northern Wholesale
Mag -Con, Inc.
Total
2006
Employees Rank
450 1
230 2
200 3
180 4
175 5
163 6
150 7
115 10
65 8
50 9
1,778
Source: City of Lino Lakes Official Statements
(1)
Percentage
of Total
Employment
N/A %
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
-
Table 13
(2)
1997
(1)
Percentage
of Tota I
Employees Rank Employment
400 1 N/A %
215 2 N/A
70 4
125 3
35
60
55
45
1,005
8
5
6
7
N/A
N/A
N/A
N/A
N/A
N/A
Notes:
(1) = While information was obtainable for the largest employers within the City of Lino Lakes, information on the
total employment within the City was not available.
(2) = Employer information for 1997 is only available for the eight largest employers within the City of Lino Lakes.
108
CITY OF LINO LAKES, MINNESOTA
Full- time - Equivalent Employees by Type
Last Ten Fiscal Years
Full- time - Equivalent Employees as of December 31,
1997 1998 1999 2000 2001 2002
General Government
Administration 4.30 4.80 5.00 5.00 5.00 5.00
Seniors 0.63 0.63 0.63 0.63
Finance 2.50 2.50 2.50 2.75 3.50 3.50
Economic Development 2.00 2.00 2.00 3.00 1.75 1.75
Planning 1.00 2.00 2.00 2.00 2.00 2.00
Community Development 2.00 2.00
Engineering 2.50 1.00 0.50
Building 1.00 1.00 1.00
Other 1.50 0.55 0.55 0.55 0.55 0.55
Total General Government 13.80 12.85 13.18 14.93 16.43 16.43
Public Safety
Officers 17.50 19.50 19.50 21.00 21.00 22.00
Civilians 3.50 4.00 4.00 4.00 4.00 4.00
Building Inspection 2.20 2.70 2.50 3.00 3.00 4.00
Total Public Safety 23.20 26.20 26.00 28.00 28.00 30.00
Public Works
Streets 5.00 5.00 5.00 5.35 5.85 5.85
Other 1.00 1.00 1.00 1.15 1.15 1.15
Total Public Works 6.00 6.00 6.00 6.50 7.00 7.00
Parks, Recreation and Forestry 7.25 8.68 9.05 9.15 9.15 9.15
Water 1.50 2.00 1.95 1.80 2.15 2.15
Sewer 1.50 2.00 1.95 1.80 2.15 2.15
Total 53.25 57.73 58.13 62.18 64.88 66.88
Source: City Finance Office
109
Table 14
2003 2004 2005 2006
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 2.00 2.75 2.75
1.00 1.00 1.00 1.00
0.55 0.55 1.15 1.15
15.68 15.68 17.03 17.03
22.00 22.00 25.00 26.00
4.00 4.00 4.75 4.75
4.00 4.00 4.25 4.25
30.00 30.00 34.00 35.00
5.85 5.85 6.35 6.85
1.15 1.15 1.15 1.15
7.00 7.00 7.50 8.00
9.15 9.15 9.05 9.55
2.15 2.15 2.15 2.15
2.15 2.15 2.15 2.15
66.13 66.13 71.88 73.88
110
CITY OF LINO LAKES, MINNESOTA
OPERATING INDICATORS BY FUNCTION /PROGRAM
Last Ten Years
Function /Program
Fiscal Year
1997 1998 1999 2000
General Government
Elections 1 2 1 2
Registered voters 7,354 8,674 8,435 10,125
Number of votes cast 3,274 6,747 2,952 8,073
Voter participation (registered) 44.5% 77.8% 35.0% 79.7%
Public Safety
Police
Calls for Service 6,651 6,508 5,828 6,218
Traffic Citations & Warnings 2,398 2,088 2,258 2,548
Part I Crimes 280 323 254 307
Part II Crimes 958 892 791 946
Inspections
Building Permits 597 911 893 1,186
Inspections N/A N/A N/A N/A
Value of Building Permits $32,666,843 $48,683,257 $54,522,159 $57,080,794
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.
111
Table 15
Fiscal Year
2001
2002 2003 2004 2005 2006
1 2 1 2 1 2
9,349 9,423 9,911 11,718 11,035 11,618
3,089 8,291 4,650 10,147 5,288 8,284
33.0% 88.0% 46.9% 86.6% 47.9% 71.3%
6,569 7,318 7,668 7,538 7,766 7,418
2,333 2,611 2,564 3,258 3,631 5,958
343 404 370 316 257
1,120 1,259 1,004 644 591
1,042 860 826 835 837 686
N/A N/A N/A N/A N/A N/A
$74,974,042 $53,977,610 $55,864,076 $61,579,910 $53,686,592 $42,078,007
N/A N/A 2,656 3,263 6,014 5,692
N/A N/A 4,082 3,533 3,106 3,631
N/A N/A 3,780 3,804 4,440 4,460
- N/A N/A 1,020 855 1,003 867
N/A N/A N/A 10,210 10,577 10,368
N/A N/A N/A 4,349 3,904 4,387
N/A N/A N/A 3,347 4,092 3,347
CITY OF LINO LAKES, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION /PROGRAM
Last Ten Years
Function /Program
Fiscal Year
1997 1998 1999 2000
Public Safety
Police
Stations 1 1 1 1
Patrol Units 8 8 9 9
Fire (Joint Powers)
Stations in City 1 1 1 1
Fire Trucks 4 4 4 4
Public Works
Lights 350 350 397 397
Vehicles 26 26 27 27
City Streets (miles) 76.9 80.8 85.6 90.3
Culture & Recreation
Parks
Parks 16 16 17 17
Park Acres 126 126 133 133
Trails (miles) 10.5 13 14 14
Park Shelters 3 3 3 3
Basketball Courts 3 3 4 4
Fishing Pier 1 1 1 1
Skating Rinks 5 5 5 4
Soccer Fields 8 8 8 8
Baseball /Softball Fields 18 18 18 18
Tennis Courts 2 2 2 2
Playgrounds 13 13 14 15
Water
Distribution System (miles) 27.4 31.5 37.5 40.0
Water Connections 2,326 2,476 2,655 2,922
Gallons Pumped (millions) 258 294 293 373
Number of Fire Hydrants 262 286 326 357
Water Tower Capacity (millions gallons) 2 2 2 2
Sanitary Sewer
Collection System (miles)
Sewer Connections
39.3
2,544
42.2
2,773
47.5
2,846
49.8
3,104
Storm Sewer
Pipe (miles) 20.8 21.4 21.8 25.6
Source: Various City Departments
113
Table 16
Fiscal Year
2001 2002 2003 2004 2005 2006
1 1 1 1 1 1
9 9 9 10 11 12
1 1 1 1 1 1
4 4 4 4 4 5
—
405 486 489 489 559 673
27 28 28 29 29 29
91.9 93.2 93.8 94.3 95.5 96.0
Nom
Maw
17 18 19 19 18 18
133 138 142 142 141 141
14 14 18 18 19 20
3 4 4 5 5 7
4 5 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 18 20
2 2 2 2 2 2
15 16 17 17 17 16
42.5 42.5 46.2 48.2 50.8 51.1
3,263 3,433 3,548 3,738 3,957 4090
407 358 518 474 475 565
398 409 452 490 523 558
2 2 2 2 2 2
51.3 51.3 59.2 61.4 63.5 63.3
3,343 3,636 3,763 3,960 4,142 4282
28.1 29.8 31.3 31.9 33.1 34.1