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CITY OF LINO LAKES, MINNESOTA
<br />MANAGEMENT'S DISCUSSION AND ANALYSIS
<br />DECEMBER 31,2015
<br />OVERVIEW OF THE FINANCIAL STATEMENTS ICONTINUEDl
<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.
<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.
<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.
<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 Line 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.
<br />The largest portion of the City of Line Lakes' net position (56%) reflects its net investment in capital
<br />assets (e.g. land, buildings, machinery, equipment, and infrastructure). The City of Line 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 Line 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.
<br />Condensed versions of the statements of net position at December 31, 2015 and 2014 are as follows:
<br />Governmental Activities Business-TlE!_ Activities Total
<br />2015 2014 2015 2014 2015 2014
<br />Current and Other Assets
<br />Capital Assets
<br />32.222,786 $ 32,904,991 $ 14.881,531 $ 14,029.808 $ 47,104,317 """f46.934,599
<br />Total Assets
<br />Deferred outflows of resources
<br />Noncurrent Liabilities Outstanding
<br />Other Liabilities
<br />Total Liabilities
<br />Deferred inftows of resources
<br />Net Position:
<br />Net Investment in Capital Assets
<br />Restrlc1ed
<br />Unrestricted
<br />Total Net Position
<br />41,228,037
<br />73,450,823
<br />985,081
<br />27,144,998
<br />5,900,707
<br />33.045.705
<br />636.040
<br />18,230,748
<br />8,635,293
<br />13,868,120
<br />40,754,159
<br />36,212,984
<br />69,117,975
<br />19,479,195
<br />903,912
<br />20.383.107
<br />19,540,807
<br />8,666,357
<br />20,527,704
<br />$ 48,734,868
<br />29,127,829
<br />44,009,380
<br />11.860
<br />149,388
<br />63,771
<br />213,157
<br />7.404
<br />29,127,829
<br />14.672,630
<br />$ 43,800.459
<br />27,556,022
<br />41,585,830
<br />52,790
<br />86,540
<br />141.330
<br />27,556,022
<br />13,888,278
<br />$~
<br />70,355.866
<br />117.460,183
<br />998,741
<br />27.294,364
<br />5.964,476
<br />33,258,862
<br />643,444
<br />47,358,575
<br />8.835,293
<br />28.560,750
<br />64,554;618
<br />Of the remaining balance of the City of Line Lakes' net position, restricted net posnion (10%) are to be
<br />used for activijies 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.
<br />63,789,008
<br />110.703.605
<br />19,531,985
<br />992.452
<br />20.524,437
<br />47,098,829
<br />8,666.357
<br />34.415.982
<br />~
<br />CITY OF LINO LAKES, MINNESOTA
<br />MANAGEMENT'S DISCUSSION AND ANALYSIS
<br />DECEMBER 31, 2015
<br />GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED!
<br />At the end of the current fiscal year, the City of Line Lakes is able to report positive balances in all three
<br />categories of net position, both for the government as a whole, as well as for its separate governmental
<br />and business-type activities.
<br />Governmental activities Governmental activities decreased the City of Line Lakes' net position by
<br />$7,980,709. The cumulative effect of the application of GASB 68 as well as increases in expenses for
<br />public safety and public services activnies account for this reduction for 2015.
<br />Business-type activities Business-type activities increased the City of Line Lakes' net posnion by
<br />$2,356,159. Infrastructure additions by the city and developers, offset partially by increased depreciation
<br />expense due to a change in accounting estimate provided for this increased in 2015.
<br />Condensed statements of revenues, expenses, and changes in net position highlights are as follows for
<br />the years ended December 31,2015 and 2014:
<br />Governmental Activities Business-Tvpe Activities Total
<br />~~ ~~ 2!!!L_
<br />REVENUES
<br />Program Revenues:
<br />2014
<br />Charges for Services 1,621.832
<br />526,107
<br />1,176,732
<br />1.529,040
<br />640,676
<br />335,733
<br />2,638.469
<br />263,024
<br />3,035.031
<br />2,529,524 4.258,301 $ 4,058,564
<br />Operating Grants and Contributions
<br />Capital Grants and Contributions
<br />General Revenues:
<br />Property Taxes
<br />Franchise Taxes
<br />Other Taxes
<br />Contributions Not Restricted to
<br />Specific Programs
<br />Unrestricted Investment Earnings
<br />Change in Market Value
<br />Gain on Disposal of Capital Assets
<br />Total Revenues
<br />EXPENSES
<br />General Government
<br />Public Safety
<br />Public SeNice
<br />Parks, Recreation and Forestry
<br />Conservation of Natural Resources
<br />Community Development
<br />Interest on Long-Term Debt
<br />Water
<br />Sewer
<br />Total Expenses
<br />CHANGE IN NET POSITION
<br />BEFORE TRANSFERS
<br />Transfers
<br />CHANGE IN NET POSITION
<br />Net Position-Beginning of Year
<br />Prior Period Adjustment
<br />Net Assets -Beginning of Year, As Restated
<br />NET POSmGN-ENO OF YEAR
<br />9.087,390
<br />101.040
<br />74,808
<br />5,363
<br />163,825
<br />(50,864)
<br />17,838
<br />12,704.067
<br />2.016,351
<br />5.135.865
<br />6,822,972
<br />1,148,740
<br />186.111
<br />432,268
<br />632,876
<br />~
<br />(3.671,116)
<br />66,834
<br />(3,604,282)
<br />48,734,868
<br />(4,376,427)
<br />44,358,441
<br />$ 40,754,159
<br />8,612,016
<br />124,292
<br />70,578
<br />4,443
<br />114,483
<br />151,212
<br />1.727
<br />11,764,200
<br />2,038.550
<br />4,107,759
<br />4,786,121
<br />1,093,909
<br />159.649
<br />407,448
<br />618.680
<br />~
<br />(1,425,916)
<br />69,294
<br />(1 ,356,622)
<br />50,091,490
<br />50,091,490
<br />$ 48,734,868
<br />81.064
<br />(29,917)
<br />5,985.691
<br />1,394,897
<br />2,089,642
<br />3,464,739
<br />2,500,952
<br />(86,834)
<br />2,434,118
<br />41,444,300
<br />(77,959)
<br />41,366,341
<br />$ 43,800,459
<br />1,035
<br />96,213
<br />58,255
<br />2,685,027
<br />985,641
<br />~
<br />~
<br />91,128
<br />(89,294)
<br />21.834
<br />41,422,486
<br />41,422,466
<br />$ 41 ,444,300-
<br />789,131
<br />4,211,763
<br />9,087,390
<br />101,040
<br />74,808
<br />5,383
<br />244,909
<br />(80,781)
<br />17.836
<br />"i8,6e9,'758
<br />2,016,351
<br />5.135,865
<br />6,822,972
<br />1,148.740
<br />186.111
<br />432,268
<br />632,876
<br />1,394,897
<br />2,089,642
<br />"i9,859,922
<br />(1,170,164)
<br />(1,170,164)
<br />90,179,168
<br />(4,454,386)
<br />85,724,782
<br />$ 64,554,618
<br />640,676
<br />338,768
<br />8,612,016
<br />124.292
<br />70,578
<br />4,443
<br />210,698
<br />209,467
<br />1,727
<br />14,469.227
<br />2,036.550
<br />4,107,759
<br />4,786,121
<br />1.093,909
<br />159,649
<br />407,448
<br />618,680
<br />965,641
<br />1,628.258
<br />15,804,015
<br />(1,334,788)
<br />(1,334,788)
<br />91,513,956
<br />91,513,956
<br />$ 90,179,168 IV-4
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