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Management's Discussion and Analysis
<br />Toe City maintains five individual major governmental funds. Information is presented
<br />separately in the governmental fund balance sheet and in the governmental fund statement of
<br />revenues, expenditures and changes in fund balance for the following major funds:
<br />• General Fund
<br />• G.O. Improvement Bonds of2005A-Debt Service Fund
<br />• 0.0. Improvement Notes of2009A-Debt Service Fund
<br />• 0.0. Improvement Bonds of2016B-Debt Service Fund
<br />• Area and Unit Charge -Capital Project Fund
<br />Data from the other governmental funds are combined into a single, aggregated presentation.
<br />Individual fund data for each of these nonmajor governmental funds is provided in the form
<br />of combining statements elsewhere in this report.
<br />Toe City adopts an annual appropriated budget for its General Fund and its Program
<br />Recreation special revenue fund. A budgetary comparison schedule has been provided for
<br />those funds to demonstrate compliance with this budget.
<br />The basic governmental fund financial statements are statements 3 through 6 of this report.
<br />Proprietary funds. Toe City maintains two enterprise funds as a part of its proprietary fund
<br />type. Enterprise funds are used to report the same functions presented as business-type
<br />activities in the government-wide financial statements. Toe City uses enterprise funds to
<br />account for its water and sewer utilities.
<br />Toe proprietary fund statements provide the same type of information as the government-
<br />wide financial statements, only in more detail. Toe proprietary fund financial statements
<br />provide separate information for the water and sewer funds, which are considered to be major
<br />funds of the City. The basic proprietary fund financial statements are statements 7 through 9
<br />of this report.
<br />Fiduciary Funds. Fiduciary funds are used to account for resources held by the City as an
<br />agent for individuals, private organizations, or other governments. Fiduciary funds are not
<br />reflected by the government-wide financial statements because the resources of those funds
<br />are not available to support the City's own programs.
<br />Toe basic fiduciary fund statements are Statements 10 and 28.
<br />Notes to the financial statements. Toe notes provide additional information that is essential
<br />to a full understanding of the data provided in the government-wide and fund financial
<br />statements. Toe notes to the financial statements can be found following Statement 10.
<br />Other information. The combining statements referred to earlier in connection with non-
<br />major governmental funds are presented immediately following the required supplementary
<br />Management's Discussion and Analysis
<br />information. Combining and individual fund statements and schedules are presented as
<br />Statements 19 through 27.
<br />Government-Wide Financial Analysis
<br />As noted earlier, net position may serve over time as a useful indicator of a government's
<br />financial position. In the case of the City, assets exceeded liabilities by $93,293,613 at the
<br />close of the most recent fiscal year.
<br />Toe largest portion of the City's net position ($54,700,209, or 59%) reflects its net
<br />investment in capital assets ( e.g. land, buildings, equipment, and infrastructure) less any
<br />related debt used to acquire those assets that is still outstanding. Toe City uses these capital
<br />assets to provide services to citizens; consequently, these assets are not available for future
<br />spending. Although the City's 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
<br />sources, since the capital assets themselves cannot be used to liquidate these liabilities.
<br />City of Lino Lakes' Net Position
<br />Governmental Activities Business-TlE!!; Activities Totals
<br />2017 2016 2017 2016 2017 ~
<br />Assets:
<br />Current and other assets $32,942,034 $37,480,144 $15,272,668 $14,501,255 $48,214,702 $51,981,399
<br />CapitaJassets 42,6111027 41!154~25 3118311950 311860,608 74,442,977 ~
<br />Total assets $751553,061 $781634,569 $47,104,618 $46.361,863 $122,6571679 $124,996,432
<br />Deferred outflows of resources $5,625,220 $8,780,333 $97,118 $1681302 $517221338 $8,948,635
<br />Liabilities:
<br />Loog-tmn liabilities oUl!randing $27,257,669 $42,409,997 $413,334 $468,598 $27,671,003 $42,878,595
<br />Other liabilities 894136 11331~38 43453 287,286 937,589 ~
<br />Tota11iabilities $28,151,805 $431741,335 $456,787 $755,884 $28.6081592 S44,497,219
<br />Deferred inflows of resources $6.4101858 $115461117 $66,954 $50 224 $61477.812 ~• t
<br />Netposition:
<br />Net investment in capital assets $22,868,259 $18,597,344 $31,831,950 $31,860,610 $54,700,209 $50,457,954
<br />Restricted 11,730,147 13,342,852 11,730,147 13,342,852
<br />Unrestricted 1210171212 10,187,254 1418461045 13!8631447 2618631!:57 241050,701
<br />Total net position $461615,618 $421127,450 ~677,995 $451724,057 $93,2931613 $87,8:5I 1S_Q_7
<br />$11,730,147 of the City's net position represents resources that are subject to external
<br />restrictions on how they may be used. Toe remaining balance of unrestricted net position
<br />($26,863,257) may be used to meet ongoing obligations to citizens and creditors.
<br />At the end of the current fiscal year, the City 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
<br />governmental and business-type activities. IV-4
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