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CITY OF LINO LAKES, MINNESOTA
<br />MANAGEMENT’S DISCUSSION AND ANALYSIS
<br />DECEMBER 31, 2012
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<br />CAPITAL ASSET AND DEBT ADMINISTRATION
<br />Capital assets – The City of Lino Lakes’ investment in c apital assets for its governmental and business-
<br />type activities as of December 31, 2012, is $68,432,658. 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 a dec rease in the City of Lino Lakes’ in vestment in capital assets of
<br />approximately 5%. Due to economic conditions, no new infrastructure projects were undertaken by the
<br />City, and therefore, the only additions were from projects in progress. The decrease within the
<br />governmental activities is attributable to the depr eciation of buildings, cons tructed streets, underground
<br />infrastructure and vehicles. Within the business-type activities decreases were also attributable to
<br />depreciation of existing assets of the water and sewer funds.
<br />
<br />201220112012201120122011
<br />Land3,275,859 $ 3,275,859 $ -$ -$ 3,275,859 $ 3,275,859 $
<br />Construction in Progress- 211,705 - - - 211,705
<br />Buildings3,324,186 3,542,239 - - 3,324,186 3,542,239
<br />Office Equipment and Furniture450,739 447,690 - - 450,739 447,690
<br />Vehicles1,148,061 1,192,147 - - 1,148,061 1,192,147
<br />Machinery and Shop Equipment392,625 197,507 195,903 204,551 588,528 402,058
<br />Other Equipment205,040 232,546 - - 205,040 232,546
<br />Infrastructure30,838,053 32,967,803 28,602,192 29,417,251 59,440,245 62,385,054
<br />Capital Assets, Net39,634,563 $ 42,067,496 $ 28,798,095 $ 29,621,802 $ 68,432,658 $ 71,689,298 $
<br />Governmental ActivitiesBusi ness-Type ActivitiesTotal
<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 35-59.
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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 $17,426,000. Of this amount $10,646,000 comprises ta x supported debt and $6,780,000 is
<br />special assessment debt. Revenue supported debt was co mpletely retired as of the year end. All
<br />outstanding debt carries the general obli gation backing for which the City is liable in the event of default
<br />by the property owners subject to the specific taxes, special a ssessments or revenues pledged to the
<br />retirement of the debt. In addition, t he City carries a note to Anoka County for its share of the cost of the I-
<br />35E/County Road 14 Interchange projec t in the amount of $3,695,000.
<br />
<br />201220112012201120122011
<br />G.O. Bonds10,646,000 $ 9,421,000 $ -$ -$ 10,646,000 $ 9,421,000 $
<br />G.O. Special Assessment Bonds6,780,000 7,985,000 - - 6,780,000 7,985,000
<br />G.O. Revenue Bonds- - - 405,000 - 405,000
<br />Total Outstanding Debt17,426,000 $ 17,406,000 $ -$ 405,000 $ 17,426,000 $ 17,811,000 $
<br />Governmental ActivitiesBusiness-Type ActivitiesTotal
<br />Outstanding Debt at Year-End
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<br />The City of Lino Lakes’ total bonded debt decreased by $385,000 (2.2%) during the current fiscal year.
<br />The key factors for the change include the issuance of $150,000 in 2012A Equipment Certificates and the
<br />issuance of a general obligation bond in the am ount $2,015,000 to finance the Birch/Ware and Lake
<br />Dr/Main traffic signal projects. Principal in the amount of $2,550,000 was retired during the
<br />year.Additional information on the City’s long-term debt can be found in the notes to the financial
<br />statements on pages 35-59.
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