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Management's Discussion and Analysis
<br />reconciliation to facilitate this comparison between governmental funds and governmental
<br />activities.
<br />The City maintains six 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 Note of2009A-Debt Service Fund
<br />• G.O. Improvement Bonds of2016B -Debt Service Fund
<br />• Area and Unit Charge -Capital Project Fund
<br />• MSA Construction -Capital Project Fund
<br />• 2018 Street Reconstruction -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 />The 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. The 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. The City uses enterprise funds to
<br />account for its water and sewer utilities.
<br />The proprietary fund statements provide the same type of information as the government-
<br />wide financial statements, only in more detail. The 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 />Notes to the financial statements. The 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. The notes to the financial statements can be found following Statement 9.
<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 />information. Combining and individual fund statements and schedules are presented as
<br />Statements 18 through 26.
<br />Management's Discussion and Analysis
<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 and deferred outflows of resources exceeded
<br />liabilities and deferred inflows of resources by $111,091,567 at the close of the most recent
<br />fiscal year.
<br />The largest portion of the City's net position ($64,823,873, or 58%) reflects its net
<br />investment in capital assets ( e.g. land, buildings, equipm\:llt. and infrastructure) less any
<br />related debt used to acquire those assets that is still outstanding. The 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 />Go\'CffllD.cntalActivities Business-~ Activities Totals
<br />2019 2018 2019 2018 2019 ____lill_
<br />Assets:
<br />Current and other msets $42.013,231 $41,949,582 $16,667,696 $16,003,964 $58,680,927 $57,953,546
<br />Capital ...... 49~591684 44,10~67 36.:190,!!20 3217091079 86J:50204 76,811S6
<br />Total assets $911872i215 $86,052,149 $53,058~16 $48,713,043 $144,931,431 $134,765,192
<br />Deferred outflows of resomces $3,0841049 $4,2051683 $36994 $61906 $311211043 ~89
<br />Liabilities:
<br />Long-term liabilities outstanding $27,963,093 $30,443,714 $327,294 $312,016 $28,290,387 $30,755,730
<br />Other liabilities 3,560,168 1,281,550 74596 87787 3,634,764 2,069J37
<br />Total.liabilities S31,523J61 $32,425J64 $401 890 $399,803 $31,925,151 $32,825,067
<br />Deferred inflows of res01rces $4,270,184 $6.1341676 $65,512 $95J40 ss10Js11s6 ~!§_
<br />Net position:
<br />Net imestmcnt in capital assets $28,433,053 $24,640,555 $36,390,820 $32,709,079 $64,823,873 $57,349,634
<br />Restricted 12,390,431 10,579,817 12,390,431 10,579,817
<br />Unrestricted 17,640,Q35 16,577,520 16J37J28 15J70,827 33,877~63 32,148J47
<br />Total net position $58,463,519 $5 I, 797,892 $52,!!28,048 $48a79,906 $1111091~67 $1001077J98
<br />$12,390,431 of the City's net position represents resources that are subject to external
<br />restrictions on how they may be used. The remaining balance of unrestricted net position
<br />($33,877,263) 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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