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CITY OF LINO LAKES, MINNESOTA
<br />MANAGEMENT’S DISCUSSION AND ANALYSIS
<br />DECEMBER 31, 2012
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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 organizati ons, or other governments.
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<br />Notes to the financial statements – The notes provide additional inform ation that is essential to a full
<br />understanding of the data provided in the government-wide and fund financ ial statements. The notes to
<br />the financial statements can be found on pages 35-59 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 68-81 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 $92,300,600 at the close of the most
<br />recent fiscal year, an increase of $2,220,256 from the previous year. This increase is primarily due an
<br />advance in Municipal State Aid (MSA) construction funds. The City received an advance on this funding
<br />source equal to 5 years of the annual allocation to the City.
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<br />By far the largest portion of the City of Lino Lakes’ net position (55%) refl ects 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 c annot be used to liquidate these liabilities.
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<br />Condensed versions of the statements of net posit ion at December 31, 2012 and 2011 are as follows:
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<br />201220112012201120122011
<br />Current and Other Assets34,456,692 $ 30,125,796 $ 12,194,619 $ 11,292,527 $ 46,651,311 $ 41,418,323 $
<br />Capital Assets 39,634,563 42,067,496 28,798,095 29,621,802 68,432,658 71,689,298
<br />Total Assets 74,091,255 72,193,292 40,992,714 40,914,329 115,083,969 113,107,621
<br />Noncurrent Liabilities Outstanding 21,875,614 21,845,856 43,410 450,334 21,919,024 22,296,190
<br />Other Liabilities 815,149 685,320 49,196 45,767 864,345 731,087
<br />Total Liabilities 22,690,763 22,531,176 92,606 496,101 22,783,369 23,027,277
<br />Net Position:
<br />Net Investment in Capital Assets 22,166,342 24,600,103 28,798,095 29,216,866 50,964,437 53,816,969
<br />Restricted 11,595,112 11,598,803 - - 11,595,112 11,598,803
<br />Unrestricted 17,639,038 13,463,210 12,102,013 11,201,362 29,741,051 24,664,572
<br />Total Net Position51,400,492 $ 49,662,116 $ 40,900,108 $ 40,418,228 $ 92,300,600 $ 90,080,344 $
<br />Governmental ActivitiesBusiness-Type ActivitiesTotal
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<br />Of the remaining balance of the City of Lino Lakes’ net position, restricted net position (13%) are to be
<br />used for debt service requirements and a nonexpendable environmental fund. Unre stricted net position
<br />(32%) may be used to meet the government’s ongoing obligations to citizens and creditors.
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