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CITY OF LINO LAKES, MINNESOTA
<br />MANAGEMENT’S DISCUSSION AND ANALYSIS
<br />DECEMBER 31, 2015
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<br />CAPITAL ASSET AND DEBT ADMINISTRATION
<br />Capital assets – The City of Lino Lakes’ investment in capital assets for its governmental and business-
<br />type activities as of December 31, 2015, is $70,355,866. This investment in capital assets includes land,
<br />buildings, office equipment and furniture, vehicles, machinery and equipment, other capital assets, and
<br />infrastructure. This represents an increase in the City of Lino Lakes’ investment in capital assets of
<br />approximately 10%. Developer lead infrastructure additions for 2015 include NorthPointe 1st Addition as
<br />well as Saddle Club 1st Addition. The City completed construction of Well No. 6, while the pump house is
<br />still pending completion. Also sitting in construction in progress and pending final completion are, the
<br />Shenandoah Area Street Improvements, the construction of Fire Station #2, and the Birch Street turn
<br />lanes and infrastructure improvements.
<br />
<br />2015 2014 2015 2014 2015 2014
<br />Land 3,275,859$ 3,275,859$ -$ -$ 3,275,859$ 3,275,859$
<br />Construction in Progress 7,268,375 808,093 1,830,071 - 9,098,446 808,093
<br />Buildings 2,802,413 3,116,839 - - 2,802,413 3,116,839
<br />Office Equipment and Furniture 133,963 364,999 - - 133,963 364,999
<br />Vehicles 1,141,371 1,170,030 - - 1,141,371 1,170,030
<br />Machinery and Shop Equipment 1,109,527 336,387 152,886 211,027 1,262,413 547,414
<br />Other Equipment 193,122 167,804 - - 193,122 167,804
<br />Infrastructure 25,303,407 26,972,973 27,144,872 27,344,994 52,448,279 54,317,967
<br />Capital Assets, Net 41,228,037$ 36,212,984$ 29,127,829$ 27,556,021$ 70,355,866$ 63,769,005$
<br />Governmental Activities Business-Type Activities Total
<br />Capital Assets at Year-End
<br />(Net of Accumulated Depreciation)
<br />
<br />Additional information on the City’s capital assets can be found in the notes to the financial statements on
<br />pages 48-49.
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<br />Long-term debt – At the end of the current fiscal year, the City of Lino Lakes had total bonded debt
<br />outstanding of $24,611,250. Of this amount $16,406,250 comprises tax supported debt and $6,485,000 is
<br />special assessment debt. All outstanding debt carries the general obligation backing for which the City is
<br />liable in the event of default by the property owners subject to the specific taxes, special assessments or
<br />revenues pledged to the retirement of the debt. In addition, the City carries a note to Anoka County for its
<br />share of the cost of the I-35E/County Road 14 Interchange project in the amount of $1,720,000.
<br />
<br />2015 2014 2015 2014 2015 2014
<br />G.O. Bonds 16,406,250$ 9,231,000$ -$ -$ 16,406,250$ 9,231,000$
<br />G.O. Special Assessment Bonds 6,485,000 7,445,000 - - 6,485,000 7,445,000
<br />Note Payable - Anoka County 1,720,000 2,080,000 - - 1,720,000 2,080,000
<br />Total Outstanding Debt 24,611,250$ 18,756,000$ -$ -$ 24,611,250$ 18,756,000$
<br />Governmental Activities Business-Type Activities Total
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<br />The City of Lino Lakes’ total bonded debt increased by $6,215,250 (37.3%) during the current fiscal year.
<br />The key factors for the change include the issuance of $198,250 in 2015A Equipment Certificates,
<br />$963,000 in 2015B Certificates, $3,095,000 of General Obligation Bonds to finance street reconstruction
<br />in the Shenandoah Area and public infrastructure improvements related ot the construction of Fire Station
<br />#2, and $4,350,000 in EDA Lease Revenue Bonds to finance the construction of Fire Station #2 in the
<br />City of Lino Lakes. Principal in the amount of $2,391,000 was retired during the year. Additional
<br />information on the City’s long-term debt can be found in the notes to the financial statements on pages
<br />50-52.
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