Comprehensive Annual Financial Report 12/31/2013

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CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2013 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Fiduciary funds Fiduciary funds are used to account for assets held by the City as an agent for individuals, private organizations, or other governments. 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 35-59 of this report. Other information — The combining statements and schedules referred to earlier in conjunction with nonmajor governmental funds can be found on pages 68-81 of this report. GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government's financial position. The City of Lino Lakes' assets exceeded liabilities by $91,513,956 at the close of the most recent fiscal year, an decrease of $786,644 from the previous year. This decrease is primarily due annual depreciation of capital assets and the use of municipal state aid that was advanced to the City during 2012. By far the largest portion of the City of Lino Lakes' net position (55%) reflects its net investment in capital assets (e.g. land, buildings, machinery, equipment, and infrastructure). The City of Lino Lakes uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Lino Lakes' investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Condensed versions of the statements of net position at December 31, 2013 and 2012 are as follows: Of the remaining balance of the City of Lino Lakes' net position, restricted net position (12%) are to be used for debt service requirements and a nonexpendable environmental fund. Unrestricted net position (33%) may be used to meet the government's ongoing obligations to citizens and creditors. 14 Governmental Activities Business -Type Activities Total 2013 2012 2013 2012 2013 2012 Current and Other Assets $ 33,326,625 $ 34,456,692 $ 13,092,332 $ 12,194,619 $ 46,418,957 $ 46,651,311 Capital Assets 37,854,973 39,634,563 28,423,284 28,798,095 66,278,257 68,432,658 Total Assets 71,181,598 74,091,255 41,515,616 40,992,714 112,697,214 115,083,969 Noncurrent Liabilities Outstanding 20,006,657 21,875,614 54,182 43,410 20,060,839 21,919,024 Other Liabilities 1,083,451 815,149 38,968 49,196 1,122,419 864,345 Total Liabilities 21,090,108 22,690,763 93,150 92,606 21,183,258 22,783,369 Net Position: Net Investment in Capital Assets 22,241,821 22,166,342 28,423,284 28,798,095 50,665,105 50,964,437 Restricted 11,000,033 11,595,112 - - 11,000,033 11,595,112 Unrestricted 16,849,636 17,639,038 12,999,182 12,102,013 29,848,818 29,741,051 Total Net Position $ 50,091,490 $ 51,400,492 $ 41,422,466 $ 40,900,108 $ 91,513,956 $ 92,300,600 Of the remaining balance of the City of Lino Lakes' net position, restricted net position (12%) are to be used for debt service requirements and a nonexpendable environmental fund. Unrestricted net position (33%) may be used to meet the government's ongoing obligations to citizens and creditors. 14