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CITY OF LINO LAKES, MINNESOTA
<br />MANAGEMENT’S DISCUSSION AND ANALYSIS
<br />DECEMBER 31, 2015
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<br />OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
<br />Fiduciary funds Fiduciary funds are used to account for assets held by the City as an agent for
<br />individuals, private organizations, or other governments.
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<br />Notes to the financial statements – The notes provide additional information that is essential to a full
<br />understanding of the data provided in the government-wide and fund financial statements. The notes to
<br />the financial statements can be found on pages 35-65 of this report.
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<br />Other information – The combining statements and schedules referred to earlier in conjunction with
<br />nonmajor governmental funds can be found on pages 76-91 of this report.
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<br />GOVERNMENT-WIDE FINANCIAL ANALYSIS
<br />As noted earlier, net position may serve over time as a useful indicator of a government’s financial
<br />position. The City of Lino Lakes’ assets exceeded liabilities by $84,554,618 at the close of the most
<br />recent fiscal year, a decrease of $5,624,550 from the previous year. This decrease is primarily due
<br />annual depreciation of capital assets.
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<br />The largest portion of the City of Lino Lakes’ net position (56%) reflects its net investment in capital
<br />assets (e.g. land, buildings, machinery, equipment, and infrastructure). The City of Lino Lakes uses these
<br />capital assets to provide services to citizens; consequently, these assets are not available for future
<br />spending. Although the City of Lino Lakes’ investment in its capital assets is reported net of related debt,
<br />it should be noted that the resources needed to repay this debt must be provided from other sources,
<br />since the capital assets themselves cannot be used to liquidate these liabilities.
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<br />Condensed versions of the statements of net position at December 31, 2015 and 2014 are as follows:
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<br />2015 2014 2015 2014 2015 2014
<br />Current and Other Assets 32,222,786$ 32,904,991$ 14,881,531$ 14,029,608$ 47,104,317$ 46,934,599$
<br />Capital Assets 41,228,037 36,212,984 29,127,829 27,556,022 70,355,866 63,769,006
<br />Total Assets 73,450,823 69,117,975 44,009,360 41,585,630 117,460,183 110,703,605
<br />Deferred outflows of resources 985,081 - 11,660 - 996,741 -
<br />Noncurrent Liabilities Outstanding 27,144,998 19,479,195 149,386 52,790 27,294,384 19,531,985
<br />Other Liabilities 5,900,707 903,912 63,771 88,540 5,964,478 992,452
<br />Total Liabilities 33,045,705 20,383,107 213,157 141,330 33,258,862 20,524,437
<br />Deferred inflows of resources 636,040 - 7,404 - 643,444 -
<br />Net Position:
<br />Net Investment in Capital Assets 18,230,746 19,540,807 29,127,829 27,556,022 47,358,575 47,096,829
<br />Restricted 8,635,293 8,666,357 - - 8,635,293 8,666,357
<br />Unrestricted 13,888,120 20,527,704 14,672,630 13,888,278 28,560,750 34,415,982
<br />Total Net Position 40,754,159$ 48,734,868$ 43,800,459$ 41,444,300$ 84,554,618$ 90,179,168$
<br />Governmental Activities Business-Type Activities Total
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<br />Of the remaining balance of the City of Lino Lakes’ net position, restricted net position (10%) are to be
<br />used for activities restricted by law (special revenue funds), debt service requirements and a
<br />nonexpendable environmental fund. Unrestricted net position (34%) may be used to meet the
<br />government’s ongoing obligations to citizens and creditors.
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