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Management's Discussion and Analysis
<br />The 2018 Street Reconstruction fund has a total fund balance of$1,0I0,945. The fund
<br />balance decreased during the year by $4,289,134 due to expending proceeds from the 2018
<br />bond issuance for the West Shadow Lake Drive and LaMotte Area Street Reconstruction
<br />project.
<br />The combined fund balance ofother governmental funds increased by $1,518,608 during
<br />2019. Primary reasons for the increase include increased investment earnings, increased tax
<br />increment revenues, and increased development activities resulting in increased developer
<br />fee revenues (park dedication, seal coating, surface water management). Increases are
<br />partially offset by increased spending for park and trail improvements, Cedar Street
<br />Reconstruction improvements, and a transfer out for the Civic Complex roof replacement
<br />project.
<br />Proprietary funds. The City's proprietary funds provide the same type of information
<br />found in the government-wide financial statements, but in more detail.
<br />The water fund has total net position at year-end of$25,527,564, of which $6,097,611 is
<br />unrestricted. The increase in net position of$2,045,656 was primarily due to capital
<br />contributions and strong investment earnings, partially offset by a net operating loss and a
<br />transfer to the Pavement Management Fund for watermain system repairs associated with the
<br />2019 Mill & Overlay project.
<br />The sewer fund has total net position at year-end of$27,100,484 of which $10,139,617 is
<br />unrestricted. The increase in net position of $2,302,486 was primarily due to capital
<br />contributions and strong investments earnings, partially offset by a net operating loss.
<br />Budgetary Highlights
<br />General Fund
<br />The General Fund budget was amended during the year to reflect increased charges for
<br />services and municipal and police state aid and a slight decrease in revenues relative to
<br />building and licensing activities, fines and forfeitures, and refunds and reimbursements. In
<br />the budget was amended to account for a transfer in from the Municipal Buildings and
<br />Facilities Fund for the Civic Complex Roof Replacement project. The City also received
<br />$711,854 of insurance proceeds associated with the damage to the Civic Complex roof.
<br />Changes to expenditure areas include decreased personal services due to personnel vacancies,
<br />a net decrease to professional and contracted services, a decrease in parts/supplies spending,
<br />increased capital outlay, increased expenditures associated with the Civic Complex Roof
<br />project, and transfers for the comprehensive plan and summer playground program
<br />temporary staff. The final amended expenditure budget was $726,331 more than the original
<br />adopted budget.
<br />Revenues were $114,171 over budget for the year. General property tax, special
<br />assessments, and fines and forfeits were $71,543 under budget; however, this variance was
<br />Management's Discussion and Analysis
<br />more than offset by greater than anticipated license and permit revenues, intergovernmental
<br />revenue, charges for services, and investment earnings.
<br />Expenditures came in under budget by $168,830 due to many factors including lower than
<br />expected personal service costs from vacant positions and favorable professional and
<br />contracted service activity. Fuel costs were much higher than anticipated due to an increase
<br />in the average fuel price, as well as an increase in the number of snow events. Professional
<br />and contracted service activity in parks was much higher than anticipated due to costs
<br />associated with council initiated projects that were not originally planned for in 2019.
<br />Capital Asset and Debt Administration
<br />Capital assets. The City's investment in capital assets for its governmental and business-
<br />type activities as of December 31, 2019, amounted to $86,250,504 (net of accumulated
<br />depreciation), an increase of$9,438,858 from the prior year. This investment in capital
<br />assets includes land, wetland credits, construction in progress, buildings, equipment,
<br />vehicles, and infrastructure. The City completed land preparation activities for NorthPointe
<br />Park and trunk watermain and trail improvements along Lake Drive in 2019. The City has
<br />continued to work to complete trunk utility improvements at 49&J, drainage improvements
<br />in the NE Area of the City, Water Tower #3, Phase II of the controls automation upgrade at
<br />the Civic Complex, Woods Edge Park improvements, and street and utility improvements in
<br />the West Shadow Lake Drive and LaMotte areas. In addition, the City started Civic
<br />Complex card access system upgrades, Woods of Baldwin Park improvements, Apollo Drive
<br />Trail improvements, Pheasant Hills watermain improvements, Well House #1 Rehabilitation
<br />improvements, Cedar Street Reconstruction improvements, and the purchase and build-out of
<br />two public safety vehicles. Developer lead infrastructure improvements at various stages of
<br />completion include St Clair Estates, NorthPointe 6th and ~ Additions, Saddle Club
<br />3rd Addition, Century Farms~ Addition, Chavez Estates, Eastside Villas, and Watermark.
<br />City of Lino Lakes' Capital Assets
<br />(Net of Depreciation)
<br />Governmental Activities Business• Tl'.!!: Activities Totals
<br />~ 2018 2019 2018 2019 ---1Q!!
<br />Land $3,532,930 $3,320,059 $ $ $3,532,930
<br />Wetland credits 170,421 167,224 170,421
<br />Construction in progress 10,094,933 3,595,457 6,123,837 1,623,032 16,218,770
<br />Buildilll!o" 6,983,477 6,375,432 10,157 6,993,634
<br />Office equipment and furniture 233,176 270,711 233,176
<br />Vehicles 1,842,573 1,945,189 1,842,573
<br />Machinery and shop equipment 1,087,529 1,226,246 139,603 161,538 1,227,132
<br />Other equipment 835,192 330,618 835,192
<br />Infrastructure 25,079,453 26,971,631 30,I 17J23 30,924,509 55,196,676
<br />Tots! $49,859.684 $44~02,567 $36~90,820 $32,709.079 $86~50.504
<br />Additional information on the City's capital assets can be found in Note 5 to the financial
<br />statements.
<br />$3,320,059
<br />167,224
<br />5,218,489
<br />6,375,432
<br />270,711
<br />1,945,189
<br />1,387,784
<br />330,618
<br />57,896,140
<br />$76,911,646 IV-7
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