06-02-25 - Council Work Session Agenda

Home Search

MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of Lino Lakes, Minnesota (the City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. Financial Highlights The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $155,249,603 (net position). Of this amount, $43,812,026 (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors in accordance with the City's fund designations and fiscal policies. The City's total net position increased by $10,930,604. As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $36,850,557, an increase of $2,833,504. Of this amount, $6,441,358 is restricted by external constraints established by creditors, grantors, contributors, or by state statutory provisions. At the end of the current fiscal year, the general fund balance was $9,556,417. Unassigned fund balance for the general fund was $8,931,762, or 70% of total general fund expenditures and other financing uses. In 2024, the City secured financing assistance from the Minnesota Public Facilities Authority (MPFA) for the construction of a new water treatment plant. This funding package includes $16.5 million in Special Appropriations Grants from the State of Minnesota, along with grants from the Federal Drinking Water Revolving Fund. These grants are received on a reimbursement basis, during the year $3,840,963 was recognized as intergovernmental revenue. Additionally, the City was awarded up to $15,996,190 through the Drinking Water State Revolving Loan from the MPFA, structured as a water revenue note. Over the course of the year, the City issued $1,216,285 against the 2024 G.O. Water Revenue Note (MPFA), with further draws expected as construction progresses. No other new debt was issued, while regularly scheduled principal payments were made during the year. Total outstanding debt decreased by $975,009 during 2024. 19